Full Press Release Details
T2 Biosystems Announces Second Quarter 2022 Financial Results
T2Dx Instrument contracts increased by 300% compared to the prior year period
LEXINGTON, Mass., August 15, 2022 (GLOBE NEWSWIRE) T2 Biosystems, Inc. (NASDAQ:TTOO) (the Company ), a leader in the rapid
detection of sepsis-causing pathogens and antibiotic resistance genes, today announced financial results for the second quarter ended June 30, 2022.
Our second quarter results
demonstrate continued execution across our three corporate priorities: accelerating our sales, enhancing our operations, and advancing our pipeline, stated John Sperzel, Chairman and CEO of T2 Biosystems. While we have seen an expected
decline in sales of COVID-19 tests, we are pleased with our continued progress driving adoption of our T2Dx Instrument and sepsis test panels, while improving operating efficiency and advancing the U.S.
clinical trials for the T2Resistance Panel and the T2Biothreat Panel. We strengthened our balance sheet during and subsequent to the end of the second quarter, allowing us to achieve our near-term milestones and keeping us well positioned to drive
sustainable, long-term growth.
Second Quarter 2022 Financial Results
Total revenue for the second quarter of 2022 was $5.9 million, a decrease of 12% compared to the prior year period. Product revenue for the second quarter
of 2022 was $2.6 million, a decrease of 30% compared to the prior year period. Contribution revenue for the second quarter of 2022 was $3.4 million, an increase of 11% compared to the prior year period.
Research and development and selling, general and administrative expenses were $15.8 million for the
second quarter of 2022, an increase of $3.2 million compared to the prior year period, driven by increased BARDA contract activity.
second quarter of 2022 was $18.0 million, $0.10 per share, compared to a net loss of $12.5 million, $0.08 per share, in the prior year period.
Cash, cash equivalents and restricted cash were $14.3 million as of June 30, 2022.
2022 Financial Outlook
The Company continues to expect
full year 2022 total revenue of $28.0 to $31.0 million, including product revenue of $16.0 to $17.0 million and research contribution revenue of $12.0 to $14.0 million. The Company continues to expect to close 60 to 70 T2Dx Instrument
contracts in 2022 and COVID-19 revenue to decrease from $9.5 to $3.5 million.
Webcast and Conference Call
The Company s management team will host a conference call today, August 15, 2022, beginning at 4:30 pm ET. Investors interested
in listening to the call may do so by dialing 844-825-9789 for domestic callers or
412-317-5180 for International callers. A live and recorded webcast of the call will be available on the Investors section of the Company s website at
T2 Biosystems, a leader in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes, 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, the T2Bacteria Panel, the T2Candida 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 T2Biothreat Panel, the T2Cauris Panel, and T2Lyme Panel, as well as next-generation products for the detection of bacterial and fungal pathogens and associated
antimicrobial resistance markers.
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 our revenue results and cash balance, financial outlook, instrument contracts,
timing of filing of an FDA submission, impact of operating expense reductions, plans to develop a diagnostic test for monkeypox, anticipated strategic priorities, product demand, commitments or opportunities, and growth expectations or targets, as
well as statements that include the words expect, 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, 2021, filed with
the U.S. Securities and Exchange Commission, or SEC, on March 23, 2022, and other filings the Company makes with the SEC from time to time, including our Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. 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.
Philip Trip Taylor, Gilmartin Group
Consolidated Balance Sheets
(In thousands, except share and per share data)
| June 30, 2022 | December 31, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 13,212 | $ | 22,245 | ||||
| Marketable securities | 9,996 | |||||||
| Accounts receivable | 2,721 | 5,134 | ||||||
| Inventories | 5,673 | 3,909 | ||||||
| Prepaid expenses and other current assets | 3,096 | 3,110 | ||||||
| Total current assets | 24,702 | 44,394 | ||||||
| Property and equipment, net | 4,447 | 4,675 | ||||||
| Operating lease right-of-use assets | 9,169 | 9,766 | ||||||
| Restricted cash | 1,131 | 1,551 | ||||||
| Other assets | 156 | 153 | ||||||
| Total assets | $ | 39,605 | $ | 60,539 | ||||
| Liabilities and stockholders deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,231 | $ | 2,832 | ||||
| Accrued expenses and other current liabilities | 7,819 | 8,338 | ||||||
| Deferred revenue | 142 | 518 | ||||||
| Total current liabilities | 13,192 | 11,688 | ||||||
| Notes payable, net of current portion | 48,712 | 47,790 | ||||||
| Operating lease liabilities, net of current portion | 8,748 | 9,359 | ||||||
| Deferred revenue, net of current portion | 88 | 28 | ||||||
| Derivative liability | 1,675 | |||||||
| Other liabilities | 4,709 | 4,577 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders deficit | ||||||||
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2022 and December 31, 2021 | ||||||||
| Common stock, $0.001 par value; 400,000,000 shares authorized; 198,451,428 and 166,400,892 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 198 | 166 | ||||||
| Additional paid-in capital | 469,028 | 459,151 | ||||||
| Accumulated other comprehensive loss | (4 | ) | ||||||
| Accumulated deficit | (506,745 | ) | (472,216 | ) | ||||
| Total stockholders deficit | (37,519) | (12,903) | ||||||
| Total liabilities and stockholders deficit | $ | 39,605 | $ | 60,539 |
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue | $ | 2,559 | $ | 3,678 | $ | 6,403 | $ | 8,328 | ||||||||
| Contribution revenue | 3,352 | 3,016 | 6,742 | 5,322 | ||||||||||||
| Total revenue | 5,911 | 6,694 | 13,145 | 13,650 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of product revenue | 5,081 | 4,831 | 11,286 | 10,621 | ||||||||||||
| Research and development | 8,025 | 5,399 | 14,681 | 10,064 | ||||||||||||
| Selling, general and administrative | 7,824 | 7,244 | 17,054 | 13,447 | ||||||||||||
| Total costs and expenses | 20,930 | 17,474 | 43,021 | 34,132 | ||||||||||||
| Loss from operations | (15,019 | ) | (10,780 | ) | (29,876 | ) | (20,482 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 2 | 6 | 5 | 12 | ||||||||||||
| Interest expense | (3,021 | ) | (1,700 | ) | (4,671 | ) | (2,713 | ) | ||||||||
| Other income, net | 4 | (1 | ) | 13 | 48 | |||||||||||
| Total other expense | (3,015 | ) | (1,695 | ) | (4,653 | ) | (2,653 | ) | ||||||||
| Net loss | $ | (18,034 | ) | $ | (12,475 | ) | $ | (34,529 | ) | $ | (23,135 | ) | ||||
| Net loss per share basic and diluted | $ | (0.10 | ) | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.15 | ) | ||||
| Weighted-average number of common shares used in computing net loss per share basic and diluted | 176,788,170 | 154,885,039 | 173,340,822 | 151,576,606 | ||||||||||||
| Other comprehensive loss: | ||||||||||||||||
| Net loss | $ | (18,034 | ) | $ | (12,475 | ) | $ | (34,529 | ) | $ | (23,135 | ) | ||||
| Net unrealized gain (loss) on marketable securities arising during the period | 9 | 2 | 9 | |||||||||||||
| Less: net realized (gain) loss on marketable securities included in net loss | 2 | (12 | ) | 2 | (14 | ) | ||||||||||
| Total other comprehensive (loss) income, net of taxes | 11 | (12 | ) | 4 | (5 | ) | ||||||||||
| Comprehensive loss | $ | (18,023 | ) | $ | (12,487 | ) | $ | (34,525 | ) | $ | (23,140 | ) |