T2 Biosystems Announces Preliminary First Quarter 2020 Financial Results
March 24 2020 - 4:30PM
T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid
detection of sepsis-causing pathogens, today announced unaudited,
preliminary financial result estimates for the quarter ended March
31, 2020, and suspended full year 2020 financial and operational
guidance due to uncertainties from the impact of the novel
coronavirus (COVID-19) pandemic.
The Company continues to leverage its technology
and scientific expertise to aid in the COVID-19 response while
prioritizing the health and safety of its employees and customers.
T2 Biosystems recently announced a licensing agreement to support
development of a rapid COVID-19 test, developed by the Center of
Discovery and Innovation (CDI) at Hackensack Meridian Health,
enabling a larger role in the pandemic response.
The licensed coronavirus assay has been used by
healthcare professionals within the Hackensack Meridian Health
network, under the U.S. Food and Drug Administration’s Emergency
Use Authorization guidance, to test and treat patients suspected of
having coronavirus. T2 Biosystems intends to adapt the newly
licensed COVID-19 test to run on its T2Dx® Instrument, the same
instrument used for the FDA-cleared T2Bacteria® and T2Candida®
Panels, allowing the detection of both coronavirus and associated
secondary bacterial or fungal infections that may lead to sepsis.
Preliminary Unaudited First Quarter
Financial Results
- Estimated first quarter 2020 total revenue is expected to be in
the range of $2.2 million to $2.6 million, compared to $1.8 million
in total revenue the first quarter of 2019.
- Estimated first quarter product revenue is expected to be in
the range of $0.9 million to $1.1 million, compared to product
revenue of $1.3 million in the prior year period.
- Estimated first quarter research and grant contribution
revenues are expected to be in the range of $1.3 million to $1.5
million, compared to research and grant contribution revenue of
$0.5 million in the prior year period.
- Cash and cash equivalents as of March 31, 2020 are expected to
be approximately $30.0 million.
“As a result of impacts from the COVID-19
pandemic, we recently began to experience disruption to our
commercial operations. We are unsure of the magnitude or duration
of these impacts in 2020, and we are making the necessary
adjustments to minimize impact to our business,” said President and
Chief Executive Officer, John Sperzel. “With the newly-licensed
coronavirus test being adapted to the T2Dx Instrument, we are
working to provide a comprehensive offering to enable the detection
and early targeted treatment of COVID-19 patients and the related
co-infections and secondary infections that cause sepsis. With our
proprietary technology and its detection capability, we believe we
are well positioned to address an urgent healthcare need for rapid
diagnostic testing.”
2020 Financial OutlookDue to
uncertainties related to the on-going COVID-19 pandemic, the
Company has suspended financial and operational guidance for
2020.
The Company expects to provide complete first
quarter 2020 financial results in early May.
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, 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 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, the adaptation of the COVID-19
test on the Company’s T2Dx® Instrument, 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. The preliminary, estimated
financial results for the first quarter contained in this document
are subject to the completion of management’s and the audit
committee's final reviews and our other financial closing
procedures and are therefore subject to change. 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
Communications gkent@vaultcommunications.com
610-455-2763
Investor Contact: Philip Trip Taylor, Gilmartin
Group philip@gilmartinIR.com 415-937-5406
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