T2 Biosystems Announces First Quarter 2021 Financial Results

Rhea-AI Summary

T2 Biosystems (TTOO) reported strong financial results for Q1 2021, with total revenue rising 173% to $7.0 million, including product revenue surging 345% to $4.7 million. Sepsis test utilization in the U.S. increased by 85%, resulting in an annualized test run rate of approximately $111,000 per instrument. The company sold 4 T2Dx instruments, expanded its salesforce to 9 Regional Account Managers, and modified existing contracts to enhance product development. Despite a net loss of $(10.7) million, T2 holds $43.9 million in cash and expects full-year revenues between $24 million and $26 million.

Positive

• Total revenue increased by 173% to $7.0 million.
• Product revenue surged 345% to $4.7 million.
• 85% increase in U.S. sepsis test utilization.
• Sold 4 T2Dx instruments in Q1 2021.
• Expanded U.S. salesforce to 9 Regional Account Managers.

Negative

• Net loss of $(10.7) million for Q1 2021.

LEXINGTON, Mass., May 06, 2021 (GLOBE NEWSWIRE) -- T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid detection of sepsis-causing pathogens, today announced financial results for the three months ended March 31, 2021.

Recent Highlights

• Achieved first quarter 2021 revenue of $7.0 million, including product revenue of $4.7 million, representing growth of 173% and 345%, respectively, compared to the prior year period
• Increased U.S. sepsis test utilization by 85% compared to the prior year period, resulting in a first quarter annualized test run rate of approximately $111,000 per legacy sepsis instrument
• Sold 4 T2Dx® Instruments during the first quarter, including 1 in the U.S. and 3 internationally
• Expanded U.S. salesforce to 9 Regional Account Managers
• Announced newly published independent study concluding the use of T2 sepsis panels provides faster time to detection, faster time to targeted therapy, and shortened length-of-stay
• Confirmed the T2SARS-CoV-2^TM Panel is capable of detecting the India B.1.617 variant of the SARS-CoV-2 virus based on sequence alignments and in silico analysis
• Modified terms of existing BARDA contract to add T2Resistance® Panel and accelerate development of comprehensive sepsis panel, next generation instrument, and biothreat panel
  

“Entering 2021, we set three corporate priorities: accelerating our sales, improving our operations, and advancing our pipeline. We are very pleased with our progress during the first quarter, which included 173% total revenue growth, 345% product revenue growth and 85% sepsis test revenue growth,” stated John Sperzel, President and CEO of T2 Biosystems. “We have rebuilt a clinically focused U.S. sales team to drive greater adoption of our novel sepsis products and we are strengthening our medical and clinical affairs teams to support our customers. We remain excited about our product pipeline, including the T2Resistance Panel, and our opportunity to lead the change in the standard of care for the management of patients suspected of sepsis.”

First Quarter 2021 Financial Results
Total revenue for the first quarter of 2021 was $7.0 million, an increase of 173% compared to the prior year period. Product revenue for the first quarter of 2021 was $4.7 million, an increase of 345% compared to the prior year period, driven by increased test panel and instrument sales. Research and contribution revenue for the first quarter of 2021 was $2.3 million, an increase of 54% compared to the prior year period, driven by increased BARDA contract activity.

Operating expenses for the first quarter of 2021 were $10.9 million, a decrease of $0.6 million compared to the prior year period, driven by increased BARDA contract research and development activity offset by lower selling, general and administrative headcount.

Net loss for the first quarter of 2021 was $(10.7) million, $(0.07) per share, compared to a net loss of $(14.9) million, $(0.22) per share, in the prior year period.

Cash, equivalents, marketable securities and restricted cash were $43.9 million as of March 31, 2021.

2021 Financial Outlook
The Company continues to expect revenue for the full year 2021 to be between $24.0 million and $26.0 million, including product revenue between $16.0 million and $18.0 million and research and contribution revenue of $8.0 million. The Company continues to expect to close at least 30 T2Dx Instrument contracts in 2021.

Webcast and Conference Call Information
T2’s management team will host a conference call today, May 6, 2021, beginning at 4:30pm ET. Investors interested in listening to the call may do so by dialing 1-800-496-4125 for domestic callers or 1-856-344-9209 for International callers. A live and recorded webcast of the call will be available on the “Investors” section of the Company’s website at www.t2biosystems.com.

About T2 Biosystems
T2 Biosystems, a leader in the rapid detection of sepsis-causing pathogens, is dedicated to improving patient care and reducing the cost of care by helping clinicians effectively treat patients faster than ever before. T2 Biosystems’ products include the T2Dx® Instrument, T2Candida® Panel, the T2Bacteria® Panel, the T2Resistance® Panel, and the T2SARS-CoV-2™ Panel and are powered by the proprietary T2 Magnetic Resonance (T2MR®) technology. T2 Biosystems has an active pipeline of future products, including the T2Cauris™ Panel, and T2Lyme™ Panel, as well as additional products for the detection of bacterial and fungal pathogens and associated antimicrobial resistance markers, and biothreat pathogens.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our revenue results and cash balance, financial outlook, anticipated strategic priorities, product demand, commitments or opportunities, and growth expectations or targets, as well as statements that include the words “expect,” “intend,” “plan”, “believe”, “project”, “forecast”, “estimate,” “may,” “should,” “anticipate,” and similar statements of a future or forward looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, (i) any inability to (a) realize anticipated benefits from commitments, contracts or products; (b) successfully execute strategic priorities; (c) bring products to market; (d) expand product usage or adoption; (e) obtain customer testimonials; (f) accurately predict growth assumptions; (g) realize anticipated revenues; (h) incur expected levels of operating expenses; or (i) increase the number of high-risk patients at customer facilities; (ii) failure of early data to predict eventual outcomes; (iii) failure to make or obtain anticipated FDA filings or clearances within expected time frames or at all; or (iv) the factors discussed under Item 1A. “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission, or SEC, on March 31, 2021, and other filings the company makes with the SEC from time to time. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the company may elect to update such forward-looking statements at some point in the future, unless required by law, it disclaims any obligation to do so, even if subsequent events cause its views to change. Thus, no one should assume that the Company’s silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date of this press release.

Media Contact:
Gina Kent, Vault Communications
gkent@vaultcommunications.com
610-455-2763

Investor Contact:
Philip Trip Taylor, Gilmartin Group
philip@gilmartinIR.com
415-937-5406

T2 BIOSYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)

	March 31,				December 31,
	2021				2020
Assets
Current assets:
Cash and cash equivalents	$	10,691			$	16,793
Marketable securities		22,617				25,396
Accounts receivable		4,034				5,099
Inventories		4,525				3,636
Prepaid expenses and other current assets		2,720				2,660
Total current assets		44,587				53,584
Property and equipment, net		4,202				3,771
Operating lease right-of-use assets		10,606				11,034
Restricted cash		551				551
Marketable securities		10,002				10,002
Other assets		104				136
Total assets	$	70,052			$	79,078
Liabilities and stockholders’ (deficit) equity
Current liabilities:
Accounts payable	$	3,907			$	2,058
Accrued expenses and other current liabilities		6,094				7,512
Deferred revenue		400				230
Total current liabilities		10,401				9,800
Notes payable		45,855				45,235
Operating lease liabilities, net of current portion		10,255				10,533
Deferred revenue, net of current portion		281				424
Derivative liability		181				1,010
Other liabilities		3,645				3,350
Commitments and contingencies
Stockholders’ (deficit) equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2021 and December 31, 2020		—				—
Common stock, $0.001 par value; 200,000,000 shares authorized; 148,491,673 and 148,078,974 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		148				148
Additional paid-in capital		432,905				431,544
Accumulated other comprehensive income		16				9
Accumulated deficit		(433,635	)			(422,975	)
Total stockholders’ (deficit) equity		(566	)			8,726
Total liabilities and stockholders’ (deficit) equity	$	70,052			$	79,078

T2 BIOSYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)

	Three Months Ended
	March 31,
	2021				2020
Revenue:
Product revenue	$	4,650			$	1,045
Contribution revenue		2,306				1,500
Total revenue		6,956				2,545
Costs and expenses:
Cost of product revenue		5,790				4,671
Research and development		4,665				4,780
Selling, general and administrative		6,203				6,655
Total costs and expenses		16,658				16,106
Loss from operations		(9,702	)			(13,561	)
Other income (expense):
Interest income		6				—
Interest expense		(1,013	)			(1,417	)
Other income, net		49				29
Total other expense		(958	)			(1,388	)
Net loss	$	(10,660	)		$	(14,949	)
Net loss per share — basic and diluted	$	(0.07	)		$	(0.22	)
Weighted-average number of common shares used in computing
net loss per share — basic and diluted		148,231,412				68,637,322
Other comprehensive loss:
Net loss	$	(10,660	)		$	(14,949	)
Change in net unrealized gain on marketable securities, net of taxes:
Net unrealized gain on marketable securities arising during the period		9				—
Less: net realized gain on marketable securities included in net loss		(2	)			—
Net unrealized gain on marketable securities		7				—
Comprehensive loss	$	(10,653	)		$	(14,949	)

FAQ

What were T2 Biosystems' Q1 2021 earnings results?

T2 Biosystems reported total revenue of $7.0 million for Q1 2021, a 173% increase year-over-year.

What is T2 Biosystems' revenue outlook for 2021?

The company anticipates full-year 2021 revenue between $24.0 million and $26.0 million.

How many T2Dx instruments did T2 Biosystems sell in Q1 2021?

T2 Biosystems sold 4 T2Dx instruments during the first quarter of 2021.

What was the net loss for T2 Biosystems in Q1 2021?

The net loss for Q1 2021 was $(10.7) million, or $(0.07) per share.

What percentage did T2 Biosystems' product revenue grow in Q1 2021?

Product revenue grew by 345% compared to the prior year period.