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The actor - who plays Dr Mark Sloan in the ABC medical drama - sought advice from his dermatologist after spotting a patch of scaly skin above his mouth.
He said he assumed he had chapped lips but was told the growth was malignant tissue caused by sun damage.
The cancerous cells were frozen off with liquid nitrogen, but the 35-year-old said his sensitive lips had been "traumatised" by the cream used after the procedure.
He told OK!: "I didn't eat very well for a couple of weeks and lost a bunch of weight."
Dane assured fans that he is now in good health following the scare.
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