T2 Biosystems Announces Second Quarter 2022 Financial Results
Recent Highlights
- Achieved second quarter total revenue of
$5.9 million , including product revenue of$2.6 million , representing decreases of 12% and 30% respectively, compared to the prior year period, driven by lower sales of T2SARS-CoV-2 tests. - Executed contracts for 12 T2Dx® Instruments during the second quarter, including 6 in the
U.S. and 6 outside theU.S. , an increase of 300% compared to the prior year period. - Generated core sepsis test revenue of
$1.2 million during the second quarter, a decrease of 3% compared to the prior year period. - Received a
$0.6 million order in July, the largest single sepsis order in company history, including 4 T2Dx Instruments that are expected to ship in the second half of 2022, and sepsis test panels. - Received Breakthrough Device Designation from the
U.S. Food and Drug Administration for the T2Lyme™ Panel and submitted for funding through the LymeX Initiative. - Advanced product pipeline under Option 2B of BARDA contract, including the
U.S. clinical trials for T2Resistance® Panel and T2Biothreat™ Panel, and development of next-generation products. - Formed a Scientific Advisory Board, comprised of leading clinicians and researchers in the areas of infectious disease, laboratory medicine, and pharmacy, to provide strategic guidance.
- Implemented cost of goods improvement initiative for the T2Bacteria® Panel and the T2Candida® Panel, resulting in a reduction in the manufacturing costs of those products in future quarters.
- Implemented expense reductions on
June 1 , reducing the workforce and decreasing operating expenses by approximately 20%. - Strengthened our balance sheet by raising
$27.4 million of net proceeds through ATM facility, including$4.5 million in the second quarter and$22.9 subsequent to the end of the second quarter.
“Our second quarter results demonstrate continued execution across our three corporate priorities: accelerating our sales, enhancing our operations, and advancing our pipeline,” stated
Second Quarter 2022 Financial Results
Total revenue for the second quarter of 2022 was
Research and development and selling, general and administrative expenses were
Net loss for the second quarter of 2022 was
Cash, cash equivalents and restricted cash were
2022 Financial Outlook
The Company continues to expect full year 2022 total revenue of
Webcast and Conference Call Information
The Company’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, 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
Investor Contact:
ir@T2Biosystems.com
415-937-5406
T2 Biosystems, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
2022 |
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, |
— | — | |||||
Common stock, |
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 |
T2 Biosystems, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended |
Six Months Ended |
||||||||||||||
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 | ) |
Source: T2 Biosystems, Inc.