T2 Biosystems Reports Second Quarter 2017 Financial Results; Provides Company Update
Second Quarter Business and Financial Performance Highlights:
- Second quarter product revenue was
$735,000 , a$584,000 increase from the second quarter of 2016. - Reported sequential quarterly product revenue growth of 16.5%, ahead of the expected 10% revenue growth target projected last quarter.
- Exceeded expectations by securing commitments from new hospitals in
the United States andEurope that provide access to an estimated 50,000 additional patients annually considered to be at high risk for sepsis infections. - Secured contracts with five new hospitals, including three in
the United States and two inEurope . - Obtained European CE Mark for the
T2Bacteria Panel allowing for the sale and distribution of theT2Bacteria Panel inEurope and other countries that accept the CE mark. - Closed the first European hospital contract for T2Bacteria that could begin testing patients for clinical purposes later this year.
- Closed four contracts with hospitals in
the United States for use of theT2Bacteria Panel under a Research Use Only program. - Featured in seven sessions at the
American Society for Microbiology (ASM) Conference highlighting the positive impact of T2Candida and T2Bacteria. - Testimonials from three prestigious medical institutions took place at ASM highlighting their experience with T2Candida and T2Bacteria.
- Expanded the company’s international partner channel to seven distributors covering more than 20 countries.
- Published data in the
Journal of Clinical Microbiology showing evidence of the potential superiority of T2MR’s ability to detect Lyme disease-causing bacteria.
"We had a terrific quarter and are pleased with both our financial and operational performance through the first six months of 2017,” said
Second Quarter Financial Results
Product revenue for the second quarter of 2017 increased by
Net loss attributable to common shareholders for the second quarter of 2017 was
Outlook for Remainder of 2017
The company is updating guidance for 2017, which includes:
The T2Bacteria Panel filing with the U.S.FDA is expected within the next 4-to-6 weeks.- Product revenue growth of at least 20% sequentially is projected in third quarter of 2017.
- The target for increasing the number of high-risk patients at customer facilities under contract for the 12-month period ending
September 30, 2017 is being increased to 220,000 high risk patients (as compared to the initial estimate of 150,000 patients stated inNovember 2016 which was increased to 200,000 inMay 2017 ). - Operating expenses, excluding cost of product revenue, for the third quarter projected in the range of
$12.5 million to $12.9 million .
Conference Call
Management will host a conference call today with the investment community at
About T2 Biosystems
T2 Biosystems is dedicated to developing innovative diagnostic products to improve patient health. With the FDA-cleared T2Dx Instrument and T2Candida Panel targeting sepsis and a range of additional products in development, T2 Biosystems is an emerging leader in the field of in vitro diagnostics. The Company is utilizing its proprietary T2 Magnetic Resonance technology, or T2MR®, to develop a broad set of applications aimed at lowering mortality rates, improving patient outcomes and reducing the cost of healthcare by helping medical professionals make targeted treatment decisions earlier. T2MR enables the fast and sensitive detection of pathogens, biomarkers and other abnormalities in a variety of patient sample types, including whole blood. For more information, please visit www.t2biosystems.com.
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
T2 BIOSYSTEMS, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||
(In thousands, except share and per share data) |
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(Unaudited) |
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Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2017 |
2016 |
2017 |
2016 |
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Revenue: | |||||||||||||||||
Product revenue | $ | 735 | $ | 151 | $ | 1,366 | $ | 588 | |||||||||
Research revenue | 221 | 839 | 531 | 1,498 | |||||||||||||
Total revenue | 956 | 990 | 1,897 | 2,086 | |||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of product revenue | 1,989 | 1,781 | 3,617 | 2,807 | |||||||||||||
Research and development | 7,112 | 6,369 | 13,697 | 12,958 | |||||||||||||
Selling, general and administrative | 5,759 | 6,143 | 11,633 | 12,347 | |||||||||||||
Total costs and expenses | 14,860 | 14,293 | 28,947 | 28,112 | |||||||||||||
Loss from operations | (13,904 | ) | (13,303 | ) | (27,050 | ) | (26,026 | ) | |||||||||
Interest expense, net | (1,654 | ) | (805 | ) | (3,291 | ) | (1,540 | ) | |||||||||
Other income, net | 102 | 62 | 181 | 94 | |||||||||||||
Net loss and comprehensive loss | $ | (15,456 | ) | $ | (14,046 | ) | $ | (30,160 | ) | $ | (27,472 | ) | |||||
Net loss per share — basic and diluted | $ | (0.50 | ) | $ | (0.58 | ) | $ | (0.99 | ) | $ | (1.13 | ) | |||||
Weighted-average number of common shares used in computing net loss per share — basic and diluted |
30,661,200 | 24,321,310 | 30,595,933 | 24,270,041 | |||||||||||||
T2 BIOSYSTEMS, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands, except share and per share data) | ||||||||
(Unaudited) | ||||||||
June 30, 2017 | December 31, 2016 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 46,134 | $ | 73,488 | ||||
Accounts receivable | 981 | 327 | ||||||
Prepaid expenses and other current assets | 660 | 820 | ||||||
Inventories, net | 1,014 | 803 | ||||||
Total current assets | 48,789 | 75,438 | ||||||
Property and equipment, net | 14,510 | 13,589 | ||||||
Restricted cash | 260 | 260 | ||||||
Other assets | 218 | 281 | ||||||
Total assets | $ | 63,777 | $ | 89,568 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,660 | $ | 962 | ||||
Accrued expenses and other current liabilities | 4,701 | 4,908 | ||||||
Current portion of notes payable | 1,365 | 1,269 | ||||||
Deferred revenue | 2,494 | 2,445 | ||||||
Current portion of lease incentives | 248 | 301 | ||||||
Total current liabilities | 10,468 | 9,885 | ||||||
Notes payable, net of current portion | 39,908 | 39,504 | ||||||
Lease incentives, net of current portion | 771 | 792 | ||||||
Other liabilities | 305 | 49 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2017 and December 31, 2016 |
— | — | ||||||
Common stock, $0.001 par value; 200,000,000 shares authorized; 30,763,919 and 30,482,712 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively |
32 | 30 | ||||||
Additional paid-in capital | 246,141 | 242,997 | ||||||
Accumulated deficit | (233,848 | ) | (203,689 | ) | ||||
Total stockholders’ equity | 12,325 | 39,338 | ||||||
Total liabilities and stockholders’ equity | $ | 63,777 | $ | 89,568 | ||||
Company Contact:Darlene Deptula-Hicks ,T2 Biosystems SVP & Chief Financial Officer ddeptula@t2biosystems.com 603-553-5803 Media Contact:Matthew McKillip ,T2 Biosystems mmckillip@t2biosystems.com 518-577-3466 Investor Contact:Chris Brinzey ,Westwicke Partners chris.brinzey@westwicke.com 339-970-2843