Some genetic testing companies have been under the spotlight over the past 18 months thanks to the COVID-19 pandemic. DermTech isn't one of them. However, this is definitely a stock you'll want to check out.
DermTech developed a genomics test that helps diagnose melanoma. This test is 17 times less likely to miss a melanoma diagnosis than the current approach of biopsy and histology. It's significantly less expensive. As an added bonus for patients, no cutting into their skin is required. DermTech's skin genomics testing uses an adhesive patch that's placed on a lesion, removed, and sent to a lab.
This test is already covered under Medicare. DermTech continues to make inroads picking up reimbursement from private payers as well. The company's main focus now is to educate dermatologists on the clear value that its test offers.
DermTech is also developing new genomics tests for diagnosing other types of skin cancer and for assessing skin cancer risk. The company believes that it has an addressable annual market of around $10 billion. DermTech's market cap is only around $900 million right now. This stock could have explosive potential.