DermTech, Natera can benefit from California biomarker law, says Craig-Hallum

Craig-Hallum noted that over the weekend California Governor Newsom signed SB496 into law, meaning that any health care service plan or health insurance policy issued, amended or renewed on or after July 1, 2024, will mandate coverage of biomarker tests that meet the law’s criteria. The analyst, who thinks California’s law should be viewed as a “trend forming in the U.S. of passing state-specific biomarker bills,” lists DermTech (DMTK) and Natera (NTRA) as among the companies that will benefit. Tests from Exact Sciences (EXAS) and CareDx (CDNA) could also benefit, added the analyst, who has Buy ratings on DermTech, Natera and Exact Sciences and a Hold rating on CareDx.