Corporate Presentation - DermTech

Corporate Presentation

Q3 2021

COPYRIGHT © 2021 DERMTECH. ALL RIGHTS RESERVED.

This presentation includes forward-looking statements intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “approximate,” “believes,” “continues,” “could,” “seeks,” “estimates,” “targets,” “guidance,” “expects,” “intends,” “may,” “ongoing,” “plans,” “potential,” “predicts,” “prospects,” “projects,” “should,” “will,” “would,” or similar expressions intended to identify statements about the future and the negatives of those terms, although not all forward-looking statements contain these identifying words. These statements are based on management’s current beliefs and expectations. These statements, including, but not limited to, statements regarding clinical utility tests, regulatory action, third-party payer reimbursement, and demand for our tests. These factors include, but are not limited to, the following: regulatory action with respect to our existing and planned products (our “Products”); the commercial launch and future sales of our Products; our ability to achieve favorable pricing for our Products; third-party payor coverage and reimbursement for our Products and the impact of such coverage and reimbursement on our revenue growth; the accuracy of our estimates regarding anticipated capital requirements and our needs for additional financing; market size and market adoption of our Products by dermatologists and others; the timing, cost and other aspects of the commercial launch of our Products; the timing and cost of clinical utility tests for our Products, including whether such tests will be conducted at all; our ability to develop and commercialize additional tests and products; our ability to enter into necessary transactions for licensing, acquisitions and strategic operations, as applicable; and other risks and uncertainties included in the “Risk Factors” section of the most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed by us with the Securities and Exchange Commission (the “SEC”). We may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on our forward-looking statements.

The risks and uncertainties that may cause actual results to differ materially from our current expectations are more fully described in our reports filed with the SEC. You may obtain these reports for free by visiting EDGAR on the SEC website at www.sec.gov. We assume no obligation to update any forward-looking statements after the date of this presentation or to conform any forward-looking statements to actual results, and have no intention of doing so except to the extent required by applicable law. You should, therefore, not rely on the forward-looking statements in this presentation as representing our views as of any date subsequent to the date of this presentation.

Disclaimer

COPYRIGHT © 2021 DERMTECH. ALL RIGHTS RESERVED. 2

Leadership Team

• Founder & Chairman, 10xBio (aestheticmedicine drugs)

• Chairman, Pantherics(anti-inflammatory drugs)

• MD, UCSD, Bachelors, UCLA

John Dobak, MDChief Executive Officer

• Allergan, VP US Sales, Dermatology, Ophthalmology, Aesthetics

Todd WoodChief Commercial Officer

• Dexcom, VP Finance, Corporate Controller and Treasury, Interim CFO

• Biosite, FP&A, SEC Reporting, SOX Compliance

• MBA, MS, Kelley School of Business at Indiana University

Kevin Sun, MS, MBAChief Financial Officer

• Exagen, Sr. VP Lab Operations

• Genoptix, Director Lab Operations

Claudia IbarraChief Operating Officer


• Immunologist

• Senior roles at Incyte, Medimmune

• Inventor IL-36 receptor antibody, Spesolimab

• PhD West Virginia, thesis included use of tape stripping

Mike Howell, PhDChief Scientific Officer

• Ancestry, Associate GC and Chief IP Counsel

• Caris Life Sciences, GC and Chief IP Counsel

• Wilson Sonsini Goodrich & Rosati

• US PTO patent examiner, NIHresearch biologist

• JD, MS Molecular Biology

Ray AkhavanGeneral Counsel

• Dermatologist

• FDA Consultant

• Post-doctoral, University of Minnesota; MD, University of Graz

Burkhard Jansen, MDChief Medical Affairs Officer

• Progenity, VP Payer Access

• OPKO/BRL, VP Managed Markets

• LabCorp

• Florida Blue, Kaiser, Carecentrix

Daniel Visage, MBA Sr. VP, Payer Access

• Senior roles at Nexogen, Advance, Celula, Nanogen

• Post-doctoral, UCSD

• PhD, Memorial University of Newfoundland

Zuxu Yao, PhDHead Advanced Innovation

MISSION: To transform dermatology with our non-invasive skin genomics platform,to democratize access to high quality dermatology care, and to improve the lives of millions

• Pathologist and Dermatopathologist

• Myriad, Sr. VP Medical Affairs and Dermatology Medical Director

• Associate Professor, Penn State Hershey Medical Center

• Fellowship at University of Pennsylvania

• MD, Penn State

Loren Clarke, MDChief Medical Officer

• Poseida Therapeutics, Head of IT

• Organovo, Head of IT

• DJO, VP of Applications

• Allergan – US Brand Manager Juvederm

• OrthoFX – CMO

• West Dermatology – VP Marketing

Tom PowellVP Marketing

• Dexcom – Sr Dir Talent

• Bridgepoint Education –Dir Talent Mgt

• Business/Leadership Coach

• Labs Inc, VP Comm Ops

• Pathway Genomics, Sr Dir Sales & Marketing

• Quidel – Mgr Core Diagnostics Business Unit

Sarah DionVP Strategic Marketing

Rachel WilliamsVP, Head of People

Patrick JohnsonVP Information Technology

DermTech, Inc. (NASDAQ: DMTK) is a leader in precision dermatology enabled by a non-invasive skin genomics platform

We address large market opportunities in skin disease with an initial focus in skin cancer

We operate a CLIA-certified and CAP-accredited commercial laboratoryin San Diego, CA. Our Melanoma Test is available in all 50 U.S. states

We are commercial stage and currently offer the DermTech Melanoma Test (DMT) for enhanced early melanoma detection. The DermTech Melanoma Test consists of

two laboratory tests performed on a single tissue collection; the Pigmented Lesion Assay (PLA) and TERT DNA driver mutation.

We are scaling up around our Medicare coverage policy, recent commercial payor contracts, and CPT Code (0089U) with favorable reimbursement

DermTech Mission: To transform dermatology with our non-invasive skin genomics platform.


CLIA: Clinical Laboratory Improvement Amendments; CAP: College of American Pathologists; CPT: Current Procedural Terminology

Genomic Innovations Are Less Invasive, More Accurate, and Less Expensive

Focus Company Old Standard of Care New-gen Diagnostic

Breast

Colorectal

Thyroid

Heart

Lung

Prenatal

Skin


DermTech Brings Enhanced Melanoma Detection into the 21st Century

Optimized Diagnostic Solution for Dermatology

Subjective

Visual

Assessment

Surgical

Biopsy

Subjective

Histopathology

Adhesive Patch

Sample

Collection

Genomic Analysis

CLIA/CAP

Commercial Lab

Physician

Report

(within 72 hrs.)

Subjective Low Accuracy

Invasive High Cost

Objective High Accuracy

Non-invasive Low Cost

Current Practice: More Art Than Science The Future: Non-invasive Skin Genomics

CAP: College of American Pathologists; CLIA: Clinical Laboratory Improvement Amendments.


DermTech Recent Highlights

Strong Financial Positioning

✓ Q2-21 Billable sample volume 11,750 (267% YoY Increase)

✓ Q2-21 Assay revenue ~$2.9M (349% YoY Increase)

✓ Q2-21 ASP $248 (23% YoY increase)

✓ Q2-21 Second consecutive quarter of positive assay gross margin, with TERT launch

✓ Cash balance of approximately $268M at quarter end

COPYRIGHT © 2021 DERMTECH. ALL RIGHTS RESERVED.

Investment Areas

Continued Commercial Payor Progress

✓ Announced payor contract with Blue Cross Blue Shield of IL

✓ Announced payor contract with Blue Shield of CA

✓ Announced payor contract with Blue Cross of TX

✓ Announced coverage policy with Geisinger Health

✓ Released topline Optum Economic Study data - $57-$81 MM ROI at year 3 for plan with 10 MM covered lives

Clinical Validation

✓ Added to NCCN Guidelines Class 2A recommendation

✓ Published TRUST study confirming 99% negative predictive value (NPV) in real-world setting

✓ Published positive predictive value (PPV) study demonstrating 4-6 fold increase in melanoma diagnosis and higher risk lesions over current visual assessment and histopathology pathway

7

More people are diagnosed with skin cancer than all other cancers combined and 1 in 5 Americans will develop skin cancer by the age of 70. More than 50 MM patients have UV related skin damage that puts them at risk for skin cancer

Annual cost of treatment is estimated to be $8.1 billion, $4.8 billion fornon-melanoma and $3.3 billion for melanoma (2018)

~4.5 million cases of basal cell and squamous cell diagnosed per yearin the US, ~11 MM diagnostic biopsies, with ~20,000 deaths

~200,000 new cases of melanoma were reported in 2018, ~4.0-4.5 MM diagnostic biopsies, with ~8,000 deaths

We believe that nobody has to die from skin cancer or suffer late-stage treatments


~3,000 new cases cutaneous lymphoma diagnosed, challenging diagnosis with average 3-6 years to definitive diagnosis, confusion with dermatitis leads to significant number of surgical biopsies (est. 420,000 annually)

Source: Cancer Facts & Figures 2018. American Cancer Society.

Source: AAD Skin Cancer Types Facts, aad.org

Source: Cutaneous Lymphoma Foundation, clfoundation.org

A Snapshot of the US Skin Cancer Market

Melanoma, Basal Cell,and Squamous Cell Carcinoma

DermTech’s Skin Cancer Product Pipeline

DermTech Melanoma Test (DMT) Melanoma R/O

LuminateSMUV Damage and Skin Cancer Risk (Q4 Product Introduction)

Carcinome Basal & Squamous Cell R/O

CTCL Cutaneous T-cell Lymphoma R/O

ProductDiscovery

StageProof of Concept

StageValidation

StageCommercial

Stage


• DermTech Melanoma Test: melanoma1 skin cancer

– 4-4.5 MM diagnostic surgical biopsies

• Carcinome: non-melanoma skin cancer1

– 11-12 MM diagnostic surgical biopsies

• LuminateSM: UV damage and skin cancer risk2

– 82 MM U.S. Adults aged 35-54, ~1/3 actinic sun damage

• CTCL: Cutaneous lymphoma3

– Estimated biopsies for inflammatory conditions that my be confused with CTCL ~400K-700K

Skin Cancer Market Opportunity

~$10 BB

Potential

Procedure

Volumes

Potential U.S. Patient and Procedure Volumes

1. Source: IQVIA Skin Cancer Claims and Procedures Study

2. Source: Kaiser Family Foundation, kkf.org and DermTech Estimate

3. Source: DermTech KOL advisor estimates

Estimated Total Potential Procedure Volumes

and Market Opportunity

Carcinome

Luminate

DMT

CTCL


When Diagnosed

at the

Local

Stage

When Diagnosed

at the

Regional

Stage

When Diagnosed

at the

Distant

Stage

Not Skin Cancer Skin Cancer

Not Skin Cancer Skin Cancer

DermTech Melanoma Test Enhances Early Detection


5-Year Relative Survival Rate1 Early Detection Visually Is Extremely Difficult

99% 66% 27%

1. Cancer Facts & Figures 2021. American Cancer Society.

2. Hanke CW, Carcinoma and Keratoses, 1:2 2019

Early Detection of Melanoma Is Critical to Survival

~4.0-4.5 million biopsies annually to identify 180k cases

Subjective Clinical Visual Assessment Most Biopsies Are NOT Melanoma

Unmet Need: Melanoma’s Challenging Diagnostic Pathway

Multiple biopsies and excisions of benign pigmented lesions.

Courtesy of G. Peck, MD

1. Anderson A, et al., JAMA Dermatology, 2018; doi:10.1001/jamadermatol.2018.0212

2. Elmore JG, et al. BMJ. 2017;357:j2813.

3. Strazzula L, et al. Journal of the American Academy of Dermatology, 2014; 71:1071-6


Diagnostic Inaccuracy and Unnecessary Surgery

Leads to ~25 surgical biopsies

performed per melanoma found1

58% of early-stage melanomas have

diagnostic misinterpretation2

Assess only 1% of the Lesion

Leads to high proportion (>20%)

unnecessary wide excisions3

Subjective Pathology Assessment

The First Non-invasive Gene Expression and Mutation Test to Enhance Early Melanoma Detection


1. Data on File. DermTech, Inc.

2. Jackson RJ, Jansen B, Yao Z, Ferris LK. Skin. 2020;4(2):105-110

3. Gerami P, Yao Z, Polsky D, et al. J Am Acad Dermatol. 2017;76(1):114-120.

4. Jansen B, et al. J Drugs Dermatol. 2018;17(5):574-576.

Non-invasive Adhesive Patches

• Avoids unnecessary surgery1,2

• Improves patient care and comfort

Earliest Detection

• Detects genomic drivers of cancer1,3,4

• Genomic changes can precede visual changes1,3,4

Highly Accurate

• Reduces probability of missing melanoma (<1%)

• 100% of a lesion is sampled

• Uses the precision of genomics

Better Care at a Lower Cost

Performance MetricBiopsy & Histology

PLA Test Improvement

Probability of Missed Melanoma1 17% 1% 17x

Biopsies per Melanoma2 25 2.5-5.0 5x-10x

Wide Excisions per Melanoma2,3 5.2 1.6 3x

Present Value Net Neutral 3 yr. ROI4

~$1,300 $760 ~$540Fewer biopsies while missing fewer melanomas

A long-term follow-up confirms the high NPV and high utility of the PLA in helping guide the management of pigmented lesions5

Strong Validation with Proven High Clinical Utility

Enhance early detection of melanoma

by identifying lesions with genomic atypia

1. Elmore JG, et al. BMJ. 2017; 357:j2813 & Malvehy J, et al. BJD, 2014; 177:1099-1107

2. Ferris L, et al. JAMA Dermatol, 2018; 154(10):1229-1230 & Gerami P, et al., JAAD 2017, 76:114-120e

3. Strazzula L, et al. JAAD, 2014; 71:1071-6 & Ferris L, et al. Melanoma Research, 2018 1:DOI10.1097

4. Optum Insights Economic Analysis, April 2021

5. Ferris L, et al. DOJ, 2019, 25(5)1-8

6. Ferris LK, Moy RL, Gerami P et al. J Invest Dermatol. 2019;139(5):1127-1134


Highly Validated Diagnostic Metrics

sensitivity2,6

91%-97% negative predictive value (NPV) vs

83% NPV ofcurrent pathway1,2

>99%

of cases2,5

98%

Clinicians follow the guidance ofthe test in over

Validated in 14 peer

reviewed publications

Superior Performance

Strong Clinical Validation and Robust IP Portfolio


Milestone Status Sample Size

Analytical Validation ✔ Complete 125

Clinical Validation – pathology ✔ Complete 555

Clinical Validation – mutation ✔ Complete 626

Clinical Utility ✔ Complete 45 Derms

Real-World Utility ✔ Complete 381

1-Year Follow-up ✔ Complete 734

Real-World Utility Registry ✔ Complete 3,418

Adhesive Biopsy Validation ✔ Complete N/A

Real-World NPV Study- TRUST Study ✔ Complete 1,781

Real-World PPV Study ✔ Complete 316

Economic Impact/ROI- Optum Study ✔ Complete 27 MM Claims Analyzed

CPT Codes ✔ Complete N/A

Issued US patents provide broad protection

• Broad methods covering RNA analysis of adhesive patch collected skin: 7,183,057

• Broad claims for melanoma gene classifier: 9,057,109

• Broad claims for melanoma gene classifier: 10,407,729

• Issued U.S. patents: 6

• Pending U.S. patents: 34

IP Portfolio

CPT: Current Procedural Terminology; N/A: not applicable, OUS: Outside U.S.

Publications available at www.dermtech.com

Patents issued in select countries worldwide

• Multiple European countries, Canada, Japan, and Australia

• Issued OUS patents: 5

• Pending OUS patents: 15

Trade secrets and technical know-how

• Low quantity, poor quality sample material requires special processes

• Custom automation

CMS Pricing in Place Unlocks Significant Market Opportunity

~2.0 MillionTotal Biopsies2

~$1.5 Billion$760Reimbursement2

~2.0 MillionTotal Biopsies

Reimbursement TBDExpect in-line with Medicare

payment rate+$1 Billion (est.)

Medicare

Other

Medicare Market Alone Has Potential for >$1 Billion in Sales

50%50%

1. Source: IQVIA Skin Cancer Claims and Procedures Study

2. 2020 Clinical Laboratory Fee Schedule: https://www.cms.gov/medicaremedicare-fee-service-paymentclinicallabfeeschedclinical-laboratory-fee-schedule-files/20clabq1


Medicare Coverage Establishedin January 2020 Estimated Total Number U.S. Biopsies for Pigmented Lesions1

Medicare1 Commercial Payors1

Case Study – JAMA Dermatology Publication

• 28-year-old female

• Family history of melanoma

• Complained of bug bite

• Refused surgical biopsy

• DMT (PLA) test was positive

• Histopathology revealed 0.5-mm melanoma

• Curative wide excision performed

• Case study published in JAMA Dermatology1

Effectiveness Attributes of the PLA Test

1. Childs MV. JAMA Dermatol, 2018, 154(2):223

Background

DermTech Results


Commercial Activities


Commercial Channels

TelemedicineIntegrated Primary Care Networks

On- and Near-site Employer Health Clinics & Retail Clinics

Social Media

Paid Search

ProgrammaticDisplay

Direct Sales Reps

Inside Sales Reps

Regional / Area Managers

Medical Science Liaisons

Professional Direct Sales

Channel

Consumer/Telemedicine

Channel

Healthcare

Networks


• Current 42 sales reps

• Expansion to 72 reps for coverage of13,000 dermatology clinical professionals

• Full coverage of the nation with sales team expansion

• Target Utilization-significant growth opportunity

– Average ~180 biopsies/qtr./clinician

– Current utilization ~8.0 DMT tests/quarter1

• ~10% served market penetration =~446,000 tests per year

• Revenue potential @ 10% penetration =~$312 MM/year2

Dermatology Professional Sales Force


1. DermTech estimate based on historical “good” account

2. Assumes convergence of Medicare and commercial payer rates with average ASP of $700/test

U.S. Field Sales Territory Map

Consumer Channel is Driving Awareness and Patients to Take Action

Source: Socialbakers; Google Analytics; Acuity, May-Oct, 2020, select U.S. regions

Data: Includes metrics across both published (organic and boosted) and unpublished content on owned social platforms


>10MTotal Monthly Impressions

>3MSocial Engagements

>150KMonthly Website Visitors

>25kDerm Searches Monthly

DermTech Connect-

Telehealth Solution

DermTech Connect: The first tele-dermatology option including at-home collection for melanoma testing. Provides access to early detection by connecting the patient and the provider together with the option to order a DermTech Melanoma Test

An Independent

Dermatologist

Network with patient

first focus

An efficient patient

and provider user

experience that

establishes trust and

credibility

A convenient

platform that

permits evaluation

of suspicious

lesions by board-

certified

dermatologist and

enables access to

DermTech

Melanoma Test

How It Works


• Submit images and

answer a few questions

on app

• Board Certified Dermatologist

reviews images and shares

evaluation with their patient

• Dermatologist determines next

step, which may include ordering

DMT with at-home supervised

sample collection

• Data is securely uploaded

to the DermTech Connect

Cloud

• Dermatologist reviews

results with their patient

• DermTech Patient

Advocate available to

assist locating physicians if

needed

Ordering Clinician Installed Based and Sample Volume Resumed Growth Post Q2-20 COVID Shutdown

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Samples 2,300 2,900 3,600 4,900 5,800 3,200 6,700 8,300 9,400 11,750

Unique Ordering HCPs 480 520 630 850 900 620 950 1,040 1,200 1,430

0

200

400

600

800

1,000

1,200

1,400

1,600

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Ord

erin

g C

linic

ian

sBilla

ble

Sam

ple

Vo

lum

e

Trained Sales Reps:

~7

Trained Sales Reps:

~23

Trained Sales Reps:

~7

Trained Sales Reps:

~7

Trained Sales Reps:

~23

Trained Sales Reps:

~33

COVID

Source: DermTech, Inc.

Training program for new sales reps is 3 months


DermTech Historical Quarterly Billable Sample Volume and Ordering Clinicians

Trained Sales Reps:

~23

Trained Sales Reps:

~40

Trained Sales Reps:

~40

Trained Sales Reps:

~40

Beginning to Monetize Sample Volume


Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Assay Revenue $235,000 $285,000 $385,000 $498,000 $796,000 $648,000 $1,233,000 $1,563,000 $2,190,000 $2,910,000

ASP $101 $99 $107 $101 $137 $201 $184 $188 $234 $248

$0

$50

$100

$150

$200

$250

$300

$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

$2,400,000

$2,700,000

$3,000,000

$3,300,000

AS

P

As

sa

y R

eve

nu

e

DermTech Historical Quarterly Assay Revenue and ASP

Trained Sales Reps:

~7

Trained Sales Reps:

~23

Trained Sales Reps:

~7

Trained Sales Reps:

~7

Trained Sales Reps:

~23

Trained Sales Reps:

~40

ASP: Average Selling Price

Source: DermTech, Inc., Capital IQ, Bloomberg

Training program for new sales reps is 3 months

COVID

Commercial Payer Coverage Expected To Further Accelerate Revenue Growth*

*Contracts with BCBS of IL, BS of CA and BCBS of TX went effective early 2021.

Trained Sales Reps:

~23

Trained Sales Reps:

~33

Trained Sales Reps:

~40

Trained Sales Reps:

~40

Commercial Lab Operations


CLIA-licensed laboratory in State of California and all states requiring out-of-state licensure

CAP-accredited

~9000-square-foot commercial lab space

Current floorspace capacity of 150,000 DermTech Melanoma tests per year

DermTech Melanoma Test turnaround time is~3-4 business days

CLIA: Clinical Laboratory Improvement Amendment; CAP: College of American Pathologists

• Large dermatology market opportunity

• Unique proprietary non-invasive genomic platform

• Provides more accurate results at a lower cost compared to historical methods

• Strong leadership

• Well capitalized ($268MM, end Q2-21)

DermTech, Inc. (DMTK) Unique Investment Opportunity


Documents

Corporate Presentation - DermTech