T2 Biosystems Reports Second Quarter 2017 Financial Results; Provides Company Update
August 03 2017 - 4:05PM
T2 Biosystems, Inc. (NASDAQ:TTOO), an emerging leader in the
development of innovative diagnostic products to improve patient
health, announced today operating highlights and financial results
for the second quarter ended June 30, 2017.
Second Quarter Business and Financial Performance
Highlights:
- Second quarter product revenue was $735,000, a $584,000
increase from the second quarter of 2016.
- Reported sequential quarterly product revenue growth of 16.5%,
ahead of the expected 10% revenue growth target projected last
quarter.
- Exceeded expectations by securing commitments from new
hospitals in the United States and Europe that provide access to an
estimated 50,000 additional patients annually considered to be at
high risk for sepsis infections.
- Secured contracts with five new hospitals, including three in
the United States and two in Europe.
- Obtained European CE Mark for the T2Bacteria Panel allowing for
the sale and distribution of the T2Bacteria Panel in Europe and
other countries that accept the CE mark.
- Closed the first European hospital contract for T2Bacteria that
could begin testing patients for clinical purposes later this
year.
- Closed four contracts with hospitals in the United States for
use of the T2Bacteria Panel under a Research Use Only program.
- Featured in seven sessions at the American Society for
Microbiology (ASM) Conference highlighting the positive impact of
T2Candida and T2Bacteria.
- Testimonials from three prestigious medical institutions took
place at ASM highlighting their experience with T2Candida and
T2Bacteria.
- Expanded the company’s international partner channel to seven
distributors covering more than 20 countries.
- Published data in the Journal of Clinical Microbiology showing
evidence of the potential superiority of T2MR’s ability to detect
Lyme disease-causing bacteria.
"We had a terrific quarter and are pleased with both our
financial and operational performance through the first six months
of 2017,” said John McDonough, T2 Biosystems’ Chief Executive
Officer. "We have made important progress on our strategic
priorities, highlighted by the expansion of our T2Sepsis™ Solution
with the CE Mark of T2Bacteria® in Europe. T2Candida® continues to
expand in its usage in hospitals around the world while customer
testimonials continue to grow. Early data for T2Lyme is encouraging
and shows the tremendous opportunity for our T2MR®-powered
diagnostic product pipeline. Furthermore, we are pleased to
be increasing our 2017 growth targets for the third quarter and we
look forward to the FDA filing of T2Bacteria within 4-to-6 weeks
which keeps us on track with a potential FDA clearance by the end
of 2017.”
Second Quarter Financial Results
Product revenue for the second quarter of 2017 increased by
$584,000, from the second quarter of 2016, to $735,000. The
increase in product revenue was primarily due to increased usage of
the T2Candida panel at existing customer sites, new hospitals
beginning to test patients for clinical purposes and sales of T2Dx
instruments. Research revenue in the second quarter of 2017
of $221,000 exceeded our guidance of expected second quarter
research revenue of less than $100,000. Research revenue in the
second quarter compared to the prior year quarter declined as
expected, primarily due to lower revenue recognition from our
co-development agreement with Canon US Life Sciences, which
decreased $618,000. Operating expenses, excluding cost of product
revenue, increased $359,000 to $12.9 million, from $12.5 million in
the second quarter of 2016. The increase in operating expense was
primarily driven by a $743,000 increase in research and development
expenses, offset by a $384,000 reduction in SG&A
expenses.
Net loss attributable to common shareholders for the second
quarter of 2017 was $15.5 million, or $0.50 per basic and diluted
share, compared to a net loss of $14.0 million or $0.58 per basic
and diluted share in the same period prior year.
Outlook for Remainder of 2017
The company is updating guidance for 2017, which includes:
- The T2Bacteria Panel filing with the U.S. FDA is expected
within the next 4-to-6 weeks.
- Product revenue growth of at least 20% sequentially is
projected in third quarter of 2017.
- The target for increasing the number of high-risk patients at
customer facilities under contract for the 12-month period ending
September 30, 2017 is being increased to 220,000 high risk patients
(as compared to the initial estimate of 150,000 patients stated in
November 2016 which was increased to 200,000 in May 2017).
- Operating expenses, excluding cost of product revenue, for the
third quarter projected in the range of $12.5 million to $12.9
million.
Conference Call
Management will host a conference call today with the investment
community at 4:30 p.m. Eastern Time to discuss the financial
results and other business developments. Interested parties may
access the live call via telephone by dialing 1-877-407-9208 (U.S.)
or 1-201-493-6784 (International). To listen to the live call via
T2 Biosystems' website, go to www.t2biosystems.com, in the
Investors/Events & Presentations section. A webcast replay of
the call will be available following the conclusion of the call,
also in the Investors/Events & Presentations section of the
website.
About T2 Biosystems T2 Biosystems is
dedicated to developing innovative diagnostic products to improve
patient health. With the FDA-cleared T2Dx Instrument and
T2Candida Panel targeting sepsis and a range of additional
products in development, T2 Biosystems is an emerging
leader in the field of in vitro diagnostics. The Company is
utilizing its proprietary T2 Magnetic Resonance technology, or
T2MR®, to develop a broad set of applications aimed at lowering
mortality rates, improving patient outcomes and reducing the cost
of healthcare by helping medical professionals make targeted
treatment decisions earlier. T2MR enables the fast and sensitive
detection of pathogens, biomarkers and other abnormalities in a
variety of patient sample types, including whole blood. For more
information, please visit www.t2biosystems.com.
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
additional patients, timing of testing patients, anticipated
product benefits, strategic priorities, product expansion or
opportunities, growth expectations or targets, timing of FDA
filings or clearances and anticipated operating expenses. 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, 2016, filed with the U.S.
Securities and Exchange Commission, or SEC, on March 15, 2017, 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,
it disclaims any obligation to do so, even if subsequent events
cause its views to change. 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.
|
T2 BIOSYSTEMS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS |
(In thousands, except share and per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30, |
|
June 30, |
|
2017 |
|
2016 |
|
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
revenue |
$ |
735 |
|
|
|
$ |
151 |
|
|
|
$ |
1,366 |
|
|
$ |
588 |
|
Research
revenue |
|
221 |
|
|
|
|
839 |
|
|
|
|
531 |
|
|
|
1,498 |
|
Total revenue |
|
956 |
|
|
|
|
990 |
|
|
|
|
1,897 |
|
|
|
2,086 |
|
Costs and
expenses: |
|
|
|
|
|
|
Cost of
product revenue |
|
1,989 |
|
|
|
|
1,781 |
|
|
|
|
3,617 |
|
|
|
2,807 |
|
Research
and development |
|
7,112 |
|
|
|
|
6,369 |
|
|
|
|
13,697 |
|
|
|
12,958 |
|
Selling,
general and administrative |
|
5,759 |
|
|
|
|
6,143 |
|
|
|
|
11,633 |
|
|
|
12,347 |
|
Total costs and
expenses |
|
14,860 |
|
|
|
|
14,293 |
|
|
|
|
28,947 |
|
|
|
28,112 |
|
Loss from
operations |
|
(13,904 |
) |
|
|
|
(13,303 |
) |
|
|
|
(27,050 |
) |
|
|
(26,026 |
) |
Interest expense,
net |
|
(1,654 |
) |
|
|
|
(805 |
) |
|
|
|
(3,291 |
) |
|
|
(1,540 |
) |
Other income, net |
|
102 |
|
|
|
|
62 |
|
|
|
|
181 |
|
|
|
94 |
|
Net loss and
comprehensive loss |
$ |
(15,456 |
) |
|
|
$ |
(14,046 |
) |
|
|
$ |
(30,160 |
) |
|
$ |
(27,472 |
) |
Net loss per share —
basic and diluted |
$ |
(0.50 |
) |
|
|
$ |
(0.58 |
) |
|
|
$ |
(0.99 |
) |
|
$ |
(1.13 |
) |
Weighted-average number
of common shares used in computing net loss per share —
basic and diluted |
|
30,661,200 |
|
|
|
|
24,321,310 |
|
|
|
|
30,595,933 |
|
|
|
24,270,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
T2 BIOSYSTEMS, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except share and per share data) |
(Unaudited) |
|
|
|
June 30,
2017 |
|
December 31, 2016 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
46,134 |
|
|
$ |
73,488 |
|
Accounts
receivable |
|
|
981 |
|
|
|
327 |
|
Prepaid expenses and other current assets |
|
|
660 |
|
|
|
820 |
|
Inventories, net |
|
|
1,014 |
|
|
|
803 |
|
Total
current assets |
|
|
48,789 |
|
|
|
75,438 |
|
Property and equipment,
net |
|
|
14,510 |
|
|
|
13,589 |
|
Restricted cash |
|
|
260 |
|
|
|
260 |
|
Other assets |
|
|
218 |
|
|
|
281 |
|
Total assets |
|
$ |
63,777 |
|
|
$ |
89,568 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
1,660 |
|
|
$ |
962 |
|
Accrued
expenses and other current liabilities |
|
|
4,701 |
|
|
|
4,908 |
|
Current
portion of notes payable |
|
|
1,365 |
|
|
|
1,269 |
|
Deferred
revenue |
|
|
2,494 |
|
|
|
2,445 |
|
Current
portion of lease incentives |
|
|
248 |
|
|
|
301 |
|
Total
current liabilities |
|
|
10,468 |
|
|
|
9,885 |
|
Notes payable, net of
current portion |
|
|
39,908 |
|
|
|
39,504 |
|
Lease incentives, net
of current portion |
|
|
771 |
|
|
|
792 |
|
Other liabilities |
|
|
305 |
|
|
|
49 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Preferred
stock, $0.001 par value; 10,000,000 shares authorized; no shares
issued and outstanding at June 30, 2017 and December 31, 2016 |
|
|
— |
|
|
|
— |
|
Common
stock, $0.001 par value; 200,000,000 shares authorized;
30,763,919 and 30,482,712 shares issued and outstanding
at June 30, 2017 and December 31, 2016, respectively |
|
|
32 |
|
|
|
30 |
|
Additional paid-in capital |
|
|
246,141 |
|
|
|
242,997 |
|
Accumulated deficit |
|
|
(233,848 |
) |
|
|
(203,689 |
) |
Total
stockholders’ equity |
|
|
12,325 |
|
|
|
39,338 |
|
Total liabilities and
stockholders’ equity |
|
$ |
63,777 |
|
|
$ |
89,568 |
|
|
Company Contact:
Darlene Deptula-Hicks, T2 Biosystems
SVP & Chief Financial Officer
ddeptula@t2biosystems.com
603-553-5803
Media Contact:
Matthew McKillip, T2 Biosystems
mmckillip@t2biosystems.com
518-577-3466
Investor Contact:
Chris Brinzey, Westwicke Partners
chris.brinzey@westwicke.com
339-970-2843
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