T2 Biosystems Announces Preliminary Fourth Quarter 2019 Financial Results
January 09 2020 - 4:30PM
T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the development
of innovative diagnostic products for critical unmet needs in
healthcare, today announced preliminary revenue and business
results for the three months ended December 31, 2019.
Preliminary Fourth Quarter Financial Performance
Highlights:
- Fourth quarter total revenue of approximately $3.0
million, an increase of 67% compared to the prior year period.
- Fourth quarter product revenue of approximately $1.5
million, an increase of 15% compared to the prior year period.
- Fourth quarter research and grant contribution revenues of
approximately $1.5 million.
- Secured contracts for 10 T2Dx Instruments in the fourth
quarter.
“We ended the year with positive momentum in our business, with
the addition of new customers and expansion of patient testing at
existing customers, a clear sign that the value of our products is
being realized,” said John McDonough, chairman of T2 Biosystems.
“In November, we secured CE Mark for the T2Resistance™ Panel,
providing another potential growth catalyst for 2020 along with
NTAP reimbursement for T2Bacteria®, our multi-million dollar
government contract, and a new group purchasing (GPO) contract with
Premier. This is all against a backdrop of continued high mortality
rates, hospital costs, and overutilization of antibiotics that are
often unnecessary and associated with conventional methods of
diagnosing bloodstream infections, underscoring the growth
opportunity for our tests.”
Additional Preliminary Financial Results:
- In the fourth quarter of 2019, the Company raised $4.8 million
net proceeds from the sale of 3.8 million shares through its ATM
facility and has not utilized its $30.0 million equity credit
line.
- As of December 31, 2019, the Company had cash and cash
equivalents of $11.0 million.
Complete fourth quarter and full year 2019 financial results
will be announced with the company’s fourth quarter financial
highlights and corporate update press release and conference call.
The Company’s fourth quarter and full year 2019 financial results
are preliminary and are subject to the completion of the Company’s
2019 audit.
Israel Distribution AgreementThe Company also
announced that it entered into an exclusive distribution agreement
that allows it to introduce the T2ResistanceTM, T2Bacteria®, and
T2Candida® Panels. This new distribution agreement has the
potential to expand in Israel, a country with more than 40 target
hospitals. With this expansion, T2 technology is now
available in 36 countries outside of the United States.
Incoming T2 Biosystems President and CEO, John
Sperzel, who assumed the role on January 8, said, “T2’s
breakthrough ability to detect and identify dangerous pathogens
directly from a blood sample is unique in the industry, and
represents a significant opportunity to improve the care of
patients suspected of sepsis. The Company passed some fundamental
milestones in the second half of 2019, and I look forward to
working with the talented T2 team to drive adoption and continued
growth of our business.”
About T2 Biosystems T2 Biosystems, a
leader in the development and commercialization of innovative
medical diagnostic products for critical unmet needs in healthcare,
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, and the T2ResistanceTM
Panel and are powered by the proprietary T2 Magnetic Resonance
(T2MR®) technology. T2 Biosystems has an active pipeline of future
products, including products for the detection of additional
species and antibiotic resistance markers of sepsis pathogens, and
tests for Lyme disease.
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, 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, 2018, filed with the U.S.
Securities and Exchange Commission, or SEC, on March 14, 2019, 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: Zack Kubow, W2O Group
zkubow@w2ogroup.com 415-658-6436
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