T2 Biosystems Reports Second Quarter 2018 Financial Results and Provides Corporate Update
Quarterly Product Revenue Up 71% Year-Over-Year
Launched the
Reiterates 2018 Financial Guidance, Including Increase to Lower End of
Second Quarter Business and Financial Performance Highlights:
- Reported second quarter total revenue of
$3.9 million , up 290% year-over-year, ahead of the$3.0 million to $3.3 million targeted for the quarter. - Reported second quarter product revenue of over
$1.2 million , up 71% year-over-year, and slightly above the mid-point of the target for the quarter. - Secured 9 new placements of T2Dx® Instruments in the second quarter and 10 new hospital contracts, ahead of the target of 8 new instrument placements and 6 new hospital contracts in the quarter.
- Increased targeted high-risk patients at newly contracted hospitals by an estimated 45,000, ahead of the 35,000 high-risk patients targeted in the quarter.
- T2Bacteria® pivotal clinical trial data presented for first time in the U.S. at the
American Society for Microbiology (ASM) Microbe conference in June, along with additional data and clinician reviews of the product. - Closed equity financing raising $52.6 million in gross proceeds to support commercialization of the T2Direct Diagnostics™ system, including the ongoing launch of the
T2Bacteria Panel .
“We delivered strong financial and operational results in the second quarter 2018, highlighted by the
Additional Financial Results:
- Research revenues were
$2.7 million , compared to$1.3 million last quarter and$0.2 million in last year’s second quarter. Research revenues included a one-time$1.3 million milestone payment from the Company’s partnership with Canon U.S. Life Sciences. - Costs and expenses, excluding cost of product revenue, were
$11.4 million , a 12% decrease over last year’s second quarter costs and expenses of$12.9 million and include depreciation and non-cash stock compensation from stock options and restricted stock grants (RSUs) of$4.0 million compared to$1.8 million in last year’s second quarter and increased primarily due to the vesting of performance-based RSUs. - Operating margins were a loss of
$10.9 million , a 4% decrease over last quarter’s$11.4 million operating margin loss and a 22% decrease over last year’s second quarter operating margin loss of$13.9 million .
Weighted average shares outstanding were 38.3 million this quarter compared to 36.0 million last quarter and 30.7 million in last year’s second quarter.
Guidance:
The company is reiterating the full year 2018 financial guidance it provided in conjunction with the
- Total revenue is expected to be in the range of
$10.5 million to $12.0 million , up from the previous range of$10.0 million to $12.0 million . 2018 product revenue is expected to be in the range of$5.0 million to $5.9 million , up from the previous range of$4.5 million to $5.9 million , and 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 that provide combined access to a minimum of 75,000 high-risk patients suspected of sepsis. The company expects approximately 70% of these instruments to be placed in
the United States . - Operating expenses, excluding cost of product revenue, for the third and fourth quarters of 2018 are projected to be in the range of
$10.8 million to $11.8 million , including non-cash depreciation and stock based compensation expenses of approximately$2.0 million in each quarter and non-cash stock based compensation from performance-based RSUs of$0.8 million in each quarter.
Conference Call
Management will host a conference call today with the investment community at
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 additional patients, timing of testing patients, anticipated product benefits, strategic priorities, product expansion or opportunities, growth expectations or targets, timing of
Media Contact:
Gina Kent, Vault Communications
gkent@vaultcommunications.com
610-455-2763
Investor Contact:
Matthew Clawson, W2O Group
mclawson@w2ogroup.com
949-370-8500
T2 BIOSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue: | ||||||||||||||||
Product revenue | $ | 1,220 | $ | 735 | $ | 2,268 | $ | 1,366 | ||||||||
Research revenue | 2,711 | 221 | 3,974 | 531 | ||||||||||||
Total revenue | 3,931 | 956 | 6,242 | 1,897 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product revenue | 3,458 | 1,989 | 6,731 | 3,617 | ||||||||||||
Research and development | 3,749 | 7,112 | 8,467 | 13,697 | ||||||||||||
Selling, general and administrative | 7,611 | 5,759 | 13,366 | 11,633 | ||||||||||||
Total costs and expenses | 14,818 | 14,860 | 28,564 | 28,947 | ||||||||||||
Loss from operations | (10,887 | ) | (13,904 | ) | (22,322 | ) | (27,050 | ) | ||||||||
Interest expense, net | (1,506 | ) | (1,654 | ) | (3,074 | ) | (3,291 | ) | ||||||||
Other income, net | 69 | 102 | 159 | 181 | ||||||||||||
Net loss and comprehensive loss | $ | (12,324 | ) | $ | (15,456 | ) | $ | (25,237 | ) | $ | (30,160 | ) | ||||
Net loss per share — basic and diluted | $ | (0.32 | ) | $ | (0.50 | ) | $ | (0.68 | ) | $ | (0.99 | ) | ||||
Weighted-average number of common shares used in computing net loss per share — basic and diluted |
38,263,486 | 30,661,200 | 37,127,208 | 30,595,933 |
T2 BIOSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
June 30, 2018 |
December 31, 2017 |
|||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 70,710 | $ | 41,799 | ||||
Accounts receivable | 1,593 | 467 | ||||||
Prepaid expenses and other current assets | 864 | 708 | ||||||
Inventories | 2,158 | 1,344 | ||||||
Total current assets | 75,325 | 44,318 | ||||||
Property and equipment, net | 8,503 | 10,015 | ||||||
Restricted cash | 180 | 260 | ||||||
Other assets | 206 | 268 | ||||||
Total assets | $ | 84,214 | $ | 54,861 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,152 | $ | 648 | ||||
Accrued expenses and other current liabilities | 4,210 | 6,218 | ||||||
Derivative liability | — | 2,238 | ||||||
Notes payable | 1,771 | 40,696 | ||||||
Deferred revenue | 925 | 1,736 | ||||||
Current portion of lease incentives | 257 | 246 | ||||||
Total current liabilities | 8,315 | 51,782 | ||||||
Notes payable, net of current portion | 40,344 | 1,008 | ||||||
Lease incentives, net of current portion | 614 | 731 | ||||||
Deferred revenue, net of current portion | 117 | — | ||||||
Derivative liability | 1,879 | — | ||||||
Other liabilities | 962 | — | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2018 and December 31, 2017 |
— | — | ||||||
Common stock, $0.001 par value; 200,000,000 shares authorized; 43,472,411 and 35,948,900 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively |
43 | 36 | ||||||
Additional paid-in capital | 323,195 | 267,421 | ||||||
Accumulated deficit | (291,255 | ) | (266,117 | ) | ||||
Total stockholders’ equity | 31,983 | 1,340 | ||||||
Total liabilities and stockholders’ equity | $ | 84,214 | $ | 54,861 |