DermTech ‘remains a coverage story,’ says Stephens

After California enacted a law that requires that any health care service plan or health insurance policy issued, amended or renewed on or after July 1, 2024 cover biomarker tests that meet the law’s criteria, Stephens said the firm sees a “material upside opportunity” for DermTech if national payers adopt coverage. However, DermTech “remains a coverage story” and national payers have yet to adopt coverage. The readout/publication of TRUST2 provides “an interesting setup” and could serve as a catalyst for national payer coverage and shares would likely move materially higher on the news if that were to occur, added the analyst, who keeps an Equal Weight rating and $3.50 price target on DermTech shares.