T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid
detection of sepsis-causing pathogens, today announced financial
results for the fourth quarter and full year ended December 31,
2020.
Recent Highlights
- Achieved 2020 revenue of $18.1 million, including product
revenue of $11.7 million, representing growth of 118% and 119%,
respectively, compared to the prior year period
- Achieved record quarterly revenue of $7.8 million, including
product revenue of $5.8 million, representing growth of 154% and
273%, respectively, compared to the prior year period
- Sold 57 T2Dx® Instruments in 2020, including 47 in the U.S.,
more than doubling the U.S. installed base
- Sold 21 T2Dx Instruments in the fourth quarter, including 19 in
the U.S.
- Increased U.S. sepsis test utilization by 72%, resulting in a
fourth quarter annualized run rate of approximately $86,000 per
legacy sepsis instrument and achieved U.S. COVID test utilization
growth resulting in a fourth quarter annualized run rate of
approximately $265,000 per instrument sold in 2020
- Determined the T2SARS-CoV-2™ Panel is capable of detecting
SARS-CoV-2 virus variants including those identified in the United
Kingdom, South Africa and Brazil, along with 99.99% of all
currently identified variants based on sequence alignments and in
silico analysis
- Appointed Aparna Ahuja, MD as Chief Medical Officer to drive
clinical programs and raise Company visibility within the medical
laboratory community
“We made considerable progress across the business during 2020,
including building strong demand for our products. Total product
sales increased by 119%, including 284% in the U.S. market. We sold
57 new T2Dx Instruments, including 47 in the U.S., which more than
doubled our U.S. instrument installed base, and increased sepsis
test utilization in the U.S. by 72% compared to the prior year,”
stated John Sperzel, President and CEO of T2 Biosystems. “Heading
into 2021, we will continue to focus on three corporate priorities
– accelerating our commercialization, improving our operations, and
advancing our product pipeline – which we believe positions the
company for sustained growth and long-term success.”
Fourth Quarter 2020 Financial Results Total
revenue for the fourth quarter of 2020 was $7.8 million, an
increase of 154% compared to the prior year period. Product revenue
for the fourth quarter of 2020 was $5.8 million, an increase of
273% compared to the prior year period, driven by increased test
panel and instrument sales. Research and contribution revenue for
the fourth quarter of 2020 was $2.0 million, an increase of 30%
compared to the prior year period, driven by increased activity
under the BARDA contract.
Operating expenses for the fourth quarter of 2020 were $8.7
million, a decrease of $3.2 million compared to the prior year
period, driven by lower selling, general and administrative
headcount and spending.
Net loss for the fourth quarter of 2020 was $9.9 million or a
loss of $0.07 per share, compared to a net loss of $14.0 million,
or a loss of $0.29 per share, in the prior year period.
Full Year 2020 Financial ResultsTotal revenue
for 2020 was $18.1 million, an increase of 118%, compared to the
prior year period. Product revenue for 2020 was $11.7 million, an
increase of 119% compared to the prior year period. Research and
contribution revenue for 2020 was $6.5 million, an increase of 115%
compared to the prior year period.
Operating expenses for 2020 were $38.2 million, a decrease of
$5.4 million compared to the prior year period driven primarily by
lower selling, general and administrative headcount and
spending.
Net loss for 2020 was $46.8 million, or a loss of $0.39 per
share, compared to a net loss of $59.0 million, or a loss of $1.30
per share, in 2019.
Cash, equivalents, marketable securities and restricted cash
were $52.7 million as of December 31, 2020.
2021 Financial OutlookThe Company expects full
year 2021 total revenue 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 expects to close at least 30 T2Dx Instrument contracts in
2021.
Webcast and Conference Call InformationT2’s
management team will host a conference call today, March 4, 2021,
beginning at 4:30pm ET. Investors interested in listening to the
call may do so by dialing 877-407-9208 for domestic callers or
1-201-493-6784 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 BiosystemsT2 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 StatementsThis 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. Furthermore,
statements contained in this document relating to the recent global
outbreak of the novel coronavirus disease (COVID-19), the
impact of which remains inherently uncertain on our financial
results, are forward-looking statements. 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, 2019, filed with the U.S. Securities and
Exchange Commission, or SEC, on March 16, 2020, 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
Communicationsgkent@vaultcommunications.com 610-455-2763
Investor Contact:Philip Trip Taylor, Gilmartin
Groupphilip@gilmartinIR.com 415-937-5406
T2
Biosystems, Inc.Consolidated Balance
Sheets(Unaudited, in thousands, except share and
per share data)
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
16,793 |
|
|
$ |
11,033 |
|
Marketable securities |
|
25,396 |
|
|
|
— |
|
Accounts receivable |
|
5,099 |
|
|
|
2,825 |
|
Inventories |
|
3,636 |
|
|
|
3,599 |
|
Prepaid expenses and other current assets |
|
2,660 |
|
|
|
1,438 |
|
Total current assets |
|
53,584 |
|
|
|
18,895 |
|
Property and equipment,
net |
|
3,771 |
|
|
|
5,845 |
|
Operating lease right-of-use
assets |
|
11,034 |
|
|
|
3,360 |
|
Restricted cash |
|
551 |
|
|
|
180 |
|
Marketable securities |
|
10,002 |
|
|
|
— |
|
Other assets |
|
136 |
|
|
|
206 |
|
Total assets |
$ |
79,078 |
|
|
$ |
28,486 |
|
Liabilities and
stockholders’ (deficit) equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Notes payable |
$ |
— |
|
|
$ |
42,902 |
|
Accounts payable |
|
2,058 |
|
|
|
3,753 |
|
Accrued expenses and other current liabilities |
|
7,512 |
|
|
|
11,207 |
|
Derivative liability |
|
— |
|
|
|
2,425 |
|
Deferred revenue |
|
230 |
|
|
|
285 |
|
Total current liabilities |
|
9,800 |
|
|
|
60,572 |
|
Notes payable, net of current
portion |
|
45,235 |
|
|
|
— |
|
Operating lease liabilities,
net of current portion |
|
10,533 |
|
|
|
1,873 |
|
Deferred revenue, net of
current portion |
|
424 |
|
|
|
46 |
|
Derivative liability |
|
1,010 |
|
|
|
— |
|
Other liabilities |
|
3,350 |
|
|
|
— |
|
Commitments and contingencies
(see Notes 13) |
|
|
|
|
|
|
|
Stockholders’ (deficit)
equity: |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no
shares issued and outstanding |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized;
148,078,974 and 50,651,535 shares issued and outstanding at
December 31, 2020 and December 31, 2019, respectively |
|
147 |
|
|
|
51 |
|
Additional paid-in capital |
|
431,545 |
|
|
|
342,121 |
|
Accumulated other comprehensive loss |
|
9 |
|
|
|
— |
|
Accumulated deficit |
|
(422,975 |
) |
|
|
(376,177 |
) |
Total stockholders’ (deficit) equity |
|
8,726 |
|
|
|
(34,005 |
) |
Total liabilities and
stockholders’ (deficit) equity |
$ |
79,078 |
|
|
$ |
28,486 |
|
T2
Biosystems, Inc.Consolidated Statements of
Operations and Comprehensive Loss(Unaudited, in
thousands, except share and per share data)
|
Year ended |
|
|
December 31, |
|
|
2020 |
|
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
11,677 |
|
|
$ |
5,327 |
|
Research revenue |
|
11 |
|
|
|
563 |
|
Contribution revenue |
|
6,442 |
|
|
|
2,445 |
|
Total revenue |
|
18,130 |
|
|
|
8,335 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
21,280 |
|
|
|
16,763 |
|
Research and development |
|
16,919 |
|
|
|
16,326 |
|
Selling, general and administrative |
|
21,287 |
|
|
|
27,304 |
|
Total costs and expenses |
|
59,486 |
|
|
|
60,393 |
|
Loss from operations |
|
(41,356 |
) |
|
|
(52,058 |
) |
Interest expense, net |
|
(5,504 |
) |
|
|
(7,348 |
) |
Other income, net |
|
62 |
|
|
|
400 |
|
Net loss and comprehensive
loss |
|
(46,798 |
) |
|
|
(59,006 |
) |
Net loss per share — basic and
diluted |
$ |
(0.39 |
) |
|
$ |
(1.30 |
) |
Weighted-average number of
common shares used in computing net loss per share — basic and
diluted |
|
121,331,464 |
|
|
|
45,507,754 |
|
T2
Biosystems, Inc.Consolidated Statements of
Operations and Comprehensive Loss(Unaudited, in
thousands, except share and per share data)
|
Q4 2020 |
|
|
Q4 2019 |
|
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
5,834 |
|
|
$ |
1,562 |
|
Research revenue |
|
- |
|
|
|
294 |
|
Contribution revenue |
|
1,954 |
|
|
|
1,213 |
|
Total revenue |
|
7,788 |
|
|
|
3,069 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
7,476 |
|
|
|
3,611 |
|
Research and development |
|
4,036 |
|
|
|
4,279 |
|
Selling, general and administrative |
|
4,596 |
|
|
|
7,546 |
|
Total costs and expenses |
|
16,108 |
|
|
|
15,436 |
|
Loss from operations |
|
(8,320 |
) |
|
|
(12,367 |
) |
Interest expense, net |
|
(1,598 |
) |
|
|
(1,690 |
) |
Other income, net |
|
9 |
|
|
|
16 |
|
Net loss and comprehensive
loss |
|
(9,909 |
) |
|
|
(14,041 |
) |
Net loss per share — basic and
diluted |
$ |
(0.07 |
) |
|
$ |
(0.29 |
) |
Weighted-average number of
common shares used in computing net loss per share — basic and
diluted |
|
148,018,044 |
|
|
|
47,870,662 |
|
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