RE:RE:Huge DisappointmentI think it is a rather myopic view on why DermTech would consider MedX. DermTech business model is based on a Pigmented Lesion Assay (PLA) test.The test is only for melanoma and uses a sticker placed on a mole to extract RNA and DNA to be taken back to their lab for genetic testing of melanoma genetic markers. So their market is a GP or Dermatologist who doesn't want to use the accepted gold standard the biopsy to determine if a mole or lesion is a melanoma. They need a large educated sales force to convince GP's and Dermatologists that their method is better than the current gold standard (biopsy). Where they fit in the patient pathway is when a GP or Derm suspects a melanoma they can use their sticker instead of doing a biopsy, this is much different then where MedX fits in the patient pathway.
MedX is upstream when a patient has a suspicious they may have a skin condition such as melanoma,basal, squamous, cells or psoriasis, tropical rash, or any other skin condition. The patient is triaged using MedX's superior imaging technology to present a perfect image and patient history to a dermatologist for assessment. Dermatologists are use to making visual assessments as that is the major part of their training. So MedX can do many different skin assessments than DermTech which would present a problem for DermTech as they are focused on only melanoma.
So because they serve different parts of the patient pathway it would not be a obvious fit. The real reason is size. MedX is a rounding error in comparison to DermTech's market capitalization $25 million for MedX to $1.2 billion for DermTech. MedX would be a distraction to management and therefore they would not even entertain MedX as an acquisition at this point. There are not enough fees for a IB firm to even take this to DermTech.
However, if MedX lands a number of national accounts, a growing number of dermatologists start endorsing MedX as the leader in teledermatology, MedX scanning volumes start to exceed 2,000,000 million scans a year globally then you have a much different story. MedX would be very profitable, own a huge data library, and would be an accretive acquisition for any number of large players in the dermatological space. MedX is too small right now and I think it would be a shame if MedX was acquired at say $.50 when its real value if left to execute on its stated market strategy is more likely to be around $5.00 a share over time. (2-3years)
The one thing COVID has taught dermatologists is they need an alternative way to see patients and the current imaging technology and patient pathway is unacceptable. MedX has solved these issues so I expect they have a huge opportunity if they execute properly. Hope this helps