T2 Biosystems Announces Second Quarter 2021 Financial Results
August 05 2021 - 4:05PM
T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid
detection of sepsis-causing pathogens, today announced financial
results for the three months ended June 30, 2021.
Recent Highlights
- Achieved second quarter 2021 revenue of $6.7 million, including
product revenue of $3.7 million, representing growth of 162% and
253%, respectively, compared to the prior year period
- Generated second quarter U.S. sepsis test panel utilization
annualized run rate of approximately $98,000 per legacy sepsis
instrument
- Sold 3 T2Dx® Instruments during the second quarter and achieved
routine use for T2Bacteria® and T2Candida® Panels in 3 additional
accounts following tenders won in Austria, France, and Kuwait
- Received New Technology Add-on Payment (NTAP) extension for the
T2Bacteria Panel from the U.S. Centers for Medicare & Medicaid
Services (CMS) for fiscal year 2022
- Accelerated new product development initiatives under Option 1
of existing BARDA contract, including the T2Resistance® Panel,
additionally the Company plans to initiate a clinical trial for the
panel in the first quarter of 2022
- Clinical data on the positive clinical and economic impact of
the use of T2 Biosystems’ sepsis products presented by thought
leaders at multiple global scientific and industry meetings
“Our second quarter performance represents meaningful progress
across our three corporate priorities: accelerating our sales,
enhancing our operations and advancing our pipeline,” stated John
Sperzel, Chairman and CEO of T2 Biosystems. “We are confident that
our investments in U.S. commercial expansion and medical and
clinical affairs, coupled with increased presence at clinical,
scientific and industry meetings, positions us favorably to drive
greater awareness and adoption of T2Biosystems’ products.”
Second Quarter 2021 Financial Results Total
revenue for the second quarter of 2021 was $6.7 million, an
increase of 162% compared to the prior year period. Product revenue
for the second quarter of 2021 was $3.7 million, an increase of
253% compared to the prior year period, driven by increased test
panel sales. Research and contribution revenue for the second
quarter of 2021 was $3.0 million, an increase of 100% compared to
the prior year period, driven by increased BARDA contract
activity.
Operating expenses for the second quarter of 2021 were $12.6
million, an increase of $3.6 million compared to the prior year
period, driven by increased BARDA contract research and development
activity and increased commercial headcount.
Net loss for the second quarter of 2021 was $(12.5) million,
$(0.08) per share, compared to a net loss of $(10.7) million,
$(0.09) per share, in the prior year period.
Cash, equivalents, marketable securities, and restricted cash
were $53.3 million as of June 30, 2021. The final revenue covenant
of $20.0 million for the CRG debt agreement was achieved in June
2021.
2021 Financial OutlookThe Company continues to
expect revenue for the full year 2021 to be between $24.0 million
and $26.0 million. Product revenue is now expected to be between
$14.0 million and $15.0 million, compared to the previous
expectation of between $16.0 to $18.0 million, driven by lower
T2SARS-CoV-2 Panel sales partially offset by increased sepsis test
panel sales. Research and contribution revenue is now expected to
be between $10.0 million and $11.0 million, compared to the
previous expectation of $8.0 million, driven by accelerated
progress under the BARDA contract. The Company continues to expect
to enter into at least 30 T2Dx Instrument contracts in 2021.
Webcast and Conference Call InformationT2’s
management team will host a conference call today, August 5, 2021,
beginning at 4:30pm ET. Investors interested in listening to the
call may do so by dialing 1-877-407-9208 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. 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
Communicationsgkent@vaultcommunications.com 610-455-2763
Investor Contact:Philip Trip Taylor, Gilmartin
Groupphilip@gilmartinIR.com 415-937-5406
T2 BIOSYSTEMS, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands, except share and per share data) |
(Unaudited) |
|
|
|
June 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
32,708 |
|
|
$ |
16,793 |
|
Marketable securities |
|
|
20,080 |
|
|
|
25,396 |
|
Accounts receivable |
|
|
3,979 |
|
|
|
5,099 |
|
Inventories |
|
|
4,784 |
|
|
|
3,636 |
|
Prepaid expenses and other current assets |
|
|
2,308 |
|
|
|
2,660 |
|
Total current assets |
|
|
63,859 |
|
|
|
53,584 |
|
Property and equipment, net |
|
|
4,078 |
|
|
|
3,771 |
|
Operating lease right-of-use
assets |
|
|
10,332 |
|
|
|
11,034 |
|
Restricted cash |
|
|
551 |
|
|
|
551 |
|
Marketable securities |
|
|
— |
|
|
|
10,002 |
|
Other assets |
|
|
78 |
|
|
|
136 |
|
Total assets |
|
$ |
78,898 |
|
|
$ |
79,078 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,890 |
|
|
$ |
2,058 |
|
Accrued expenses and other current liabilities |
|
|
6,017 |
|
|
|
7,512 |
|
Deferred revenue |
|
|
438 |
|
|
|
230 |
|
Total current liabilities |
|
|
9,345 |
|
|
|
9,800 |
|
Notes payable |
|
|
46,487 |
|
|
|
45,235 |
|
Operating lease liabilities, net
of current portion |
|
|
9,964 |
|
|
|
10,533 |
|
Deferred revenue, net of current
portion |
|
|
146 |
|
|
|
424 |
|
Derivative liability |
|
|
- |
|
|
|
1,010 |
|
Other liabilities |
|
|
3,947 |
|
|
|
3,350 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no
shares issued and outstanding at June 30, 2021 and
December 31, 2020 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized;
165,763,776 and 148,078,974 shares issued and outstanding at
June 30, 2021 and December 31, 2020, respectively |
|
|
165 |
|
|
|
148 |
|
Additional paid-in capital |
|
|
454,950 |
|
|
|
431,544 |
|
Accumulated other comprehensive income |
|
|
4 |
|
|
|
9 |
|
Accumulated deficit |
|
|
(446,110 |
) |
|
|
(422,975 |
) |
Total stockholders’ equity |
|
|
9,009 |
|
|
|
8,726 |
|
Total liabilities and
stockholders’ equity |
|
$ |
78,898 |
|
|
$ |
79,078 |
|
T2 BIOSYSTEMS, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS |
(In thousands, except share and per share data) |
(Unaudited) |
|
|
|
Three Months
EndedJune 30, |
|
Six Months
EndedJune 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenue |
|
$ |
3,678 |
|
|
$ |
1,041 |
|
|
$ |
8,328 |
|
|
$ |
2,086 |
|
Research revenue |
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
11 |
|
Contribution revenue |
|
|
3,016 |
|
|
|
1,500 |
|
|
|
5,322 |
|
|
|
3,000 |
|
Total revenue |
|
|
6,694 |
|
|
|
2,552 |
|
|
|
13,650 |
|
|
|
5,097 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue |
|
|
4,831 |
|
|
|
2,300 |
|
|
|
10,621 |
|
|
|
6,971 |
|
Research and development |
|
|
5,399 |
|
|
|
3,786 |
|
|
|
10,064 |
|
|
|
8,566 |
|
Selling, general and administrative |
|
|
7,244 |
|
|
|
5,305 |
|
|
|
13,447 |
|
|
|
11,960 |
|
Total costs and expenses |
|
|
17,474 |
|
|
|
11,391 |
|
|
|
34,132 |
|
|
|
27,497 |
|
Loss from operations |
|
|
(10,780 |
) |
|
|
(8,839 |
) |
|
|
(20,482 |
) |
|
|
(22,400 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
6 |
|
|
|
1 |
|
|
|
12 |
|
|
|
1 |
|
Interest expense |
|
|
(1,700 |
) |
|
|
(1,844 |
) |
|
|
(2,713 |
) |
|
|
(3,261 |
) |
Other income, net |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
48 |
|
|
|
26 |
|
Total other expense |
|
|
(1,695 |
) |
|
|
(1,846 |
) |
|
|
(2,653 |
) |
|
|
(3,234 |
) |
Net loss |
|
$ |
(12,475 |
) |
|
$ |
(10,685 |
) |
|
$ |
(23,135 |
) |
|
$ |
(25,634 |
) |
Net loss per share — basic and
diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.27 |
) |
Weighted-average number of common
shares used in computing net loss per share — basic and
diluted |
|
|
154,885,039 |
|
|
|
120,292,543 |
|
|
|
151,576,606 |
|
|
|
94,464,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12,475 |
) |
|
$ |
(10,685 |
) |
|
$ |
(23,135 |
) |
|
$ |
(25,634 |
) |
Net unrealized gain on marketable securities arising during the
period |
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Less: net realized gain on marketable securities included in net
loss |
|
|
(12 |
) |
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
Total other comprehensive loss,
net of taxes |
|
|
(12 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
Comprehensive loss |
|
$ |
(12,487 |
) |
|
$ |
(10,685 |
) |
|
$ |
(23,140 |
) |
|
$ |
(25,634 |
) |
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