DermTech, Inc. (NASDAQ:DMTK) Q4 2022 Earnings Call Transcript

Andrew Brackmann: Okay. Thanks for that. And then Kevin, maybe one for you. I think I got the comments on spending for the year, but I may have missed any comments around pacing of that spend. Anything we should consider there on the OpEx line? Thanks.

Kevin Sun: No, no. I think we look at the run rate that we’re exiting Q4. And in Q4, we already demonstrated some cost-saving initiatives and being able to reduce OpEx. We continue to take that mindset going forward. We do have our plans for 2023 already settled, but we’ll continue to look for more savings beyond those plans.

Andrew Brackmann: Got it. Thank you, guys.

Operator: Thank you. Our next question comes from Mason Carrico with Stephens. You may proceed.

Jacob Johnson: Hi, guys. This is Jacob on for Mason. Thanks for taking our questions. Lot’s been covered here, so I’ll just ask a couple of quick ones. Following up on the improvement to the NCCN recommendation for the DMT, with having discussions with private payers, did it seem like this is something that could be key to bringing on more of those payers that are, on the sense, on board?

John Dobak: Yes, we believe so. We think it’s important. And when you follow the three year history of that improving recommendation, we think that’s very impactful, and we make sure that that’s in front of the payers. So we’re going to use that. You can’t get a better endorsement from that than from the NCCN. So it’s got to hold well. We know it does, and we think it’s going to be helpful, for sure.

Jacob Johnson: Okay. Got it. And then could you just update us on utilization trends for clinicians utilizing your test? Have you seen stability in your mix for three or more tests per patient visit? Or has that trended higher recently? Thanks.

Kevin Sun: Yes. We’ve seen stabilization in that. And so the pressures that come with that is subsiding. And then when we look at the broader buckets, we saw a little bit of a decrease in the average utilization, as we have mentioned in the fourth quarter sequentially. And again, we think that’s also due to the payer friction, right? So a physician has difficulty scaling up and increasing usage when there is more and more requests for medical records for each test that they’re running. So as we implement those EMR integrations and as we’ve figured out the right appropriate way to respond to the redirection letters, we think that friction will go down and will lead to increased utilization in coming quarters.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.