** Shares of drug developer Dermata Therapeutics DRMA.O rise 9.8% to $5.70 premarket

** Co says it is shifting focus to over-the-counter dermatology products that can be sold directly to consumers

** Co plans to develop a once-weekly acne kit using an approved OTC active ingredient combined with its Spongilla technology

** The acne kit is expected to launch in mid-2026, co says

** As part of its shift, co withdrew its marketing application for Xyngari from the FDA, a drug it was developing to treat moderate-to-severe rosacea

** As of last close, stock down 61.6% YTD

(Reporting by Kamal Choudhury in Bengaluru)

((Kamal.Choudhury@thomsonreuters.com;))