T2 Biosystems Reports Third Quarter 2018 Financial Results and Provides Corporate Update
Quarterly Product Revenue Up 71% Year-Over-Year
Reiterates 2018 Financial Guidance
Third Quarter Business and Financial Performance Highlights:
- Reported third quarter total revenue of
$2.5 million, up 127% year-over-year.
- Reported third quarter product revenue of over
$1.2 million, up 71% year-over-year.
- Secured 11 new placements of T2Dx® Instruments in the third quarter and 11 new hospital contracts.
- Increased targeted high-risk patients at newly contracted hospitals by an estimated 77,000.
- Continued enrolling patients in a pivotal clinical trial of the T2Lyme™ Panel and presented new data suggesting the
T2Lyme Panelis more accurate than other diagnostic alternatives for identifying Borrelia infections for patients suspected of having early-stage Lyme disease.
- Highlighted T2Direct Diagnostics™, including the recently launched T2Bacteria® Panel, through customer and Company presentations at October’s IDWeek 2018 and the
World Antimicrobial Resistance Congress.
“We are solidly on track and making continual progress with the launch of the
Additional Financial Results:
- Research revenues were
$1.3 million, compared to $0.4 millionin last year’s third quarter.
- Costs and expenses, excluding cost of product revenue, were
$8.6 million, a 25% decrease over last year’s third quarter costs and expenses of $11.4 millionand include depreciation and non-cash stock compensation from stock options and performance-based restricted stock grants (RSUs) of $2.4 millioncompared to $1.8 millionin last year’s third quarter, an increase primarily due to the vesting of RSUs.
- Operating margins were a loss of
$9.2 million, a 26% decrease over last year’s third quarter operating margin loss of $12.4 million.
Weighted average shares outstanding were 43.8 million this quarter compared to 31.4 million in last year’s third quarter.
In October the company updated its shelf registration on Form S-3 to refresh the ability for future securities sales of up to
The company is reiterating the full year 2018 financial guidance:
- Total revenue is expected to be in the range of
$10.5 million to $12.0 million, which implies an expectation of $1.8 million to $3.3 millionin revenue in the fourth quarter. 2018 product revenue is expected to be in the range of $5.0 million to $5.9 millionand 2018 research revenue is expected to be in the range of $5.5 million to $6.1 million.
- The company expects to secure placements of 20 to 25 T2Dx Instruments in the second half of 2018, implying that the fourth quarter will include 9 to 14 new system contracts. The company’s third quarter performance achieved the goal of adding access to 75,000 high risk patients suspected of sepsis in the second half of 2018. The company expects to add at least 35,000 additional high risk patients in the fourth quarter.
- Operating expenses, excluding cost of product revenue, for the fourth quarter of 2018 is projected to be in the range of
$10.8 million to $11.8 million, including non-cash depreciation and stock based compensation expenses from stock options and RSUs of approximately $2.8 million.
Management will host a conference call today with the investment community at
About T2 Biosystems
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding additional patients, timing of testing patients, anticipated product benefits, strategic priorities, product expansion or opportunities, growth expectations or targets, timing of
Gina Kent, Vault Communications
Zack Kubow, W2O Group
| T2 BIOSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
|Three Months Ended
|Nine Months Ended
|Costs and expenses:|
|Cost of product revenue||3,042||2,106||9,773||5,722|
|Research and development||2,725||5,880||11,193||19,577|
|Selling, general and administrative||5,873||5,559||19,238||17,192|
|Total costs and expenses||11,640||13,545||40,204||42,491|
|Loss from operations||(9,174||)||(12,437||)||(31,496||)||(39,486||)|
|Interest expense, net||(1,836||)||(1,718||)||(4,910||)||(5,008||)|
|Other income, net||243||79||402||260|
|Net loss and comprehensive loss||$||(10,767||)||$||(14,076||)||$||(36,004||)||$||(44,234||)|
|Net loss per share — basic and diluted||$||(0.25||)||$||(0.45||)||$||(0.91||)||$||(1.43||)|
|Weighted-average number of common shares used in computing
net loss per share — basic and diluted
|T2 BIOSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
|Cash and cash equivalents||$||60,225||$||41,799|
|Prepaid expenses and other current assets||2,024||708|
|Total current assets||67,320||44,318|
|Property and equipment, net||8,190||10,015|
|Liabilities and stockholders’ equity|
|Accrued expenses and other current liabilities||4,427||6,218|
|Current portion of lease incentives||262||246|
|Total current liabilities||9,401||51,782|
|Notes payable, net of current portion||38,869||1,008|
|Lease incentives, net of current portion||553||731|
|Deferred revenue, net of current portion||91||—|
|Commitments and contingencies|
|Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and
outstanding at September 30, 2018 and December 31, 2017
|Common stock, $0.001 par value; 200,000,000 shares authorized; 44,038,754 and
35,948,900 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively
|Additional paid-in capital||325,740||267,421|
|Total stockholders’ equity||23,762||1,340|
|Total liabilities and stockholders’ equity||$||75,896||$||54,861|
Source: T2 Biosystems, Inc.