DermTech Inc DMTK shares are trading higher Thursday after the company announced a restructuring plan.
What Happened: DermTech announced restructuring actions intended to prioritize significant growth opportunities, streamline operations, suspend pipeline programs and reduce operating expenses.
The restructuring actions include a workforce reduction of approximately 40 employees, representing 15% of the company's workforce. The actions are expected to result in annualized savings of between $25 million and $30 million.
"After a rigorous assessment of our entire business, we've made the tough decision to realign our organizational footprint and capital deployment. We are changing certain tactics to prioritize reimbursed tests and drive revenue growth," said Bret Christensen, CEO of DermTech.
DermTech had $108.4 million in cash, equivalents and short-term marketable securities as of March 31. The company said it believes it has sufficient cash to fund operations into the first quarter of 2025.
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DMTK Price Action: DermTech shares were up 15.6% at $2.59 at the time of publication, according to Benzinga Pro.
This illustration was generated using artificial intelligence via MidJourney.
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