T2 Biosystems Announces First Quarter 2020 Financial Results
Recent Highlights
- Achieved first quarter total revenue of
$2.5 million and product revenue of$1.0 million , representing an increase of 43% and a decrease of 20% respectively, compared to the prior year period - Executed a worldwide licensing agreement for COVID-19 assay design, to accelerate the development of the T2SARS-CoV-2 TM Panel for the T2Dx® Instrument
- Received multiyear Innovative Technology contract from
Vizient, Inc. , the largest healthcare group purchasing organization in theU.S. , providing access and contracted pricing for the T2Dx Instrument, T2Candida® Panel and T2Bacteria® Panel - Implemented cost savings initiatives across the business resulting in a reduced cost structure and a headcount reduction of 22%
“I am proud of my colleagues for their unwavering commitment to advancing our mission despite the difficulties created by the greatest public healthcare challenge of our lifetime. We continue to deliver our life-saving products to hospitals to aid in the rapid detection of sepsis-causing pathogens, which is essential given the susceptibility of COVID-19 patients to co-infections and secondary infections that can lead to sepsis,” said
First Quarter 2020 Financial Results
Total revenue for the first quarter of 2020 was
Costs and operating expenses for the first quarter of 2020 were
Net loss for the first quarter of 2020 was
Total cash and equivalents as of
2020 Financial Outlook
On
Webcast and Conference Call Information
T2’s management team will host a conference call today,
About T2 Biosystems
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, 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
Media Contact:
Gina Kent, Vault Communications
gkent@vaultcommunications.com
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Investor Contact:
philip@gilmartinIR.com
415-937-5406
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
2020 |
2019 |
|||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 36,323 | $ | 11,033 | ||||
Accounts receivable | 2,454 | 2,825 | ||||||
Inventories | 3,275 | 3,599 | ||||||
Prepaid expenses and other current assets | 1,716 | 1,438 | ||||||
Total current assets | 43,768 | 18,895 | ||||||
Property and equipment, net | 4,232 | 5,845 | ||||||
Operating lease right-of-use assets | 2,966 | 3,360 | ||||||
Restricted cash | 180 | 180 | ||||||
Other assets | 206 | 206 | ||||||
Total assets | $ | 51,352 | $ | 28,486 | ||||
Liabilities and stockholders’ (deficit) equity | ||||||||
Current liabilities: | ||||||||
Notes payable | $ | 43,400 | $ | 42,902 | ||||
Accounts payable | 1,686 | 3,753 | ||||||
Accrued expenses and other current liabilities | 10,029 | 11,207 | ||||||
Derivative liability | 2,314 | 2,425 | ||||||
Deferred revenue | 238 | 285 | ||||||
Total current liabilities | 57,667 | 60,572 | ||||||
Operating lease liabilities, net of current portion | 1,350 | 1,873 | ||||||
Deferred revenue, net of current portion | 32 | 46 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ (deficit) equity: | ||||||||
Preferred stock, |
— | — | ||||||
Common stock, |
119 | 51 | ||||||
Additional paid-in capital | 383,310 | 342,121 | ||||||
Accumulated deficit | (391,126 | ) | (376,177 | ) | ||||
Total stockholders’ (deficit) equity | (7,697 | ) | (34,005 | ) | ||||
Total liabilities and stockholders’ (deficit) equity | $ | 51,352 | $ | 28,486 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended |
||||||||
2020 | 2019 | |||||||
Revenue: | ||||||||
Product revenue | $ | 1,045 | $ | 1,314 | ||||
Research revenue | — | 142 | ||||||
Contribution revenue | 1,500 | 329 | ||||||
Total revenue | 2,545 | 1,785 | ||||||
Costs and expenses: | ||||||||
Cost of product revenue | 4,671 | 4,388 | ||||||
Research and development | 4,938 | 3,901 | ||||||
Selling, general and administrative | 6,497 | 7,055 | ||||||
Total costs and expenses | 16,106 | 15,344 | ||||||
Loss from operations | (13,561 | ) | (13,559 | ) | ||||
Interest expense, net | (1,417 | ) | (1,782 | ) | ||||
Other income, net | 29 | 194 | ||||||
Net loss and comprehensive loss | $ | (14,949 | ) | $ | (15,147 | ) | ||
Net loss per share — basic and diluted | $ | (0.22 | ) | $ | (0.34 | ) | ||
Weighted-average number of common shares used in computing net loss per share — basic and diluted |
68,637,322 | 44,282,345 |
Source: T2 Biosystems, Inc.