DermTech, Inc., a San Diego-based molecular diagnostics company, developed a non-invasive patch test for melanoma detection and filed for Chapter 11 bankruptcy protection on June 18, 2024 in the District of Delaware (Case No. 24-11378) before Judge Mary F. Walrath. The company carried approximately $98 million in assets and $63 million in liabilities at filing, with about $15 million in cash on hand. Despite generating $14.4 million in test revenue during 2023, the company faced operating expenses of $104 million and lost $116.7 million in 2022, driven by reimbursement challenges, R&D costs, and facility lease obligations. DermTech had been publicly traded since 2019 and received a Nasdaq delisting warning in April 2024 for a stock price below $1 per share. After implementing multiple restructuring rounds that reduced the workforce by approximately 56% in aggregate, the company pursued a Section 363 asset sale with an expedited timeline. DERM-JES Holdings, LLC won the auction on August 15, 2024 with a bid of $1,575,000 and closing occurred on August 30, 2024. Operations continued as DermTech, LLC under new ownership with the San Diego laboratory processing DermTech Melanoma Test orders. The Chapter 11 plan of liquidation was confirmed on July 17, 2025, establishing a liquidating trust to administer sale proceeds and retained causes of action. General unsecured creditors receive an estimated recovery of 39% to 55%, while equity interests receive zero recovery.
