T2 Biosystems Announces Second Quarter 2020 Financial Results
Recent Highlights
- Achieved second quarter total revenue of
$2.6 million and product revenue of$1.0 million , an increase of 41% and a decrease of 18%, respectively, compared to the prior year period - Launched T2SARS-CoV-2™ Panel in the
U.S. for use with the T2Dx® Instrument, for the detection of SARS-CoV-2, the virus that is responsible for COVID-19 infections, onJune 30, 2020 - Submitted an Emergency Use Authorization (EUA) application for the
T2SARS-CoV-2 Panel to theU.S. Food and Drug Administration onJuly 1, 2020 - Appointed three new members to the Company’s Board of Directors, adding commercialization and clinical experience, and expanding board diversity
- Strengthened the balance sheet from the first quarter of 2020 by raising
$45.5 million through the sale of 28.4 million shares of common stock; completing the At the Market, or ATM, offering
“We made significant progress toward our corporate priorities during the second quarter – including the development, validation and
Second Quarter 2020 Financial Results
Total revenue for the second quarter of 2020 was
Costs and operating expenses for the second quarter of 2020 were
Net loss for the second quarter of 2020 was
Total cash, cash equivalents and marketable securities as of
2020 Financial Outlook
Financial and operational guidance for the full year 2020 has been reissued as a result of greater clarity around the impacts of COVID-19 on demand for products and the initial experience with the launch of the
The Company expects full year 2020 total revenues of between
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, 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. 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
610-455-2763
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 | $ | 26,549 | $ | 11,033 | ||||
Marketable securities | 9,247 | — | ||||||
Accounts receivable | 1,300 | 2,825 | ||||||
Inventories | 4,111 | 3,599 | ||||||
Prepaid expenses and other current assets | 6,165 | 1,438 | ||||||
Total current assets | 47,372 | 18,895 | ||||||
Property and equipment, net | 3,900 | 5,845 | ||||||
Operating lease right-of-use assets | 2,076 | 3,360 | ||||||
Restricted cash | 160 | 180 | ||||||
Other assets | 206 | 206 | ||||||
Total assets | $ | 53,714 | $ | 28,486 | ||||
Liabilities and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Notes payable | $ | — | $ | 42,902 | ||||
Accounts payable | 1,779 | 3,753 | ||||||
Accrued expenses and other current liabilities | 5,971 | 11,207 | ||||||
Derivative liability | — | 2,425 | ||||||
Deferred revenue | 199 | 285 | ||||||
Total current liabilities | 7,949 | 60,572 | ||||||
Notes payable, net of current portion | 44,000 | — | ||||||
Operating lease liabilities, net of current portion | 924 | 1,873 | ||||||
Deferred revenue, net of current portion | 17 | 46 | ||||||
Derivative liability | 2,391 | — | ||||||
Other liabilities | 2,821 | — | ||||||
Commitments and contingencies | ||||||||
Stockholders’ deficit: | ||||||||
Preferred stock, |
— | — | ||||||
Common stock, |
128 | 51 | ||||||
Additional paid-in capital | 397,295 | 342,121 | ||||||
Accumulated deficit | (401,811 | ) | (376,177 | ) | ||||
Total stockholders’ deficit | (4,388 | ) | (34,005 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 53,714 | $ | 28,486 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended |
Six Months Ended |
|||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Revenue: | ||||||||||||||||||
Product revenue | $ | 1,041 | $ | 1,274 | $ | 2,086 | $ | 2,588 | ||||||||||
Research revenue | 11 | 71 | 11 | 213 | ||||||||||||||
Contribution revenue | 1,500 | 459 | 3,000 | 788 | ||||||||||||||
Total revenue | 2,552 | 1,804 | 5,097 | 3,589 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||
Cost of product revenue | 2,300 | 4,820 | 6,971 | 9,208 | ||||||||||||||
Research and development | 3,980 | 4,048 | 8,918 | 7,949 | ||||||||||||||
Selling, general and administrative | 5,111 | 6,722 | 11,608 | 13,776 | ||||||||||||||
Total costs and expenses | 11,391 | 15,590 | 27,497 | 30,933 | ||||||||||||||
Loss from operations | (8,839 | ) | (13,786 | ) | (22,400 | ) | (27,344 | ) | ||||||||||
Interest expense, net | (1,843 | ) | (2,000 | ) | (3,260 | ) | (3,782 | ) | ||||||||||
Other income, net | (3 | ) | 139 | 26 | 332 | |||||||||||||
Net loss and comprehensive loss | $ | (10,685 | ) | $ | (15,647 | ) | $ | (25,634 | ) | $ | (30,794 | ) | ||||||
Net loss per share — basic and diluted | $ | (0.09 | ) | $ | (0.35 | ) | $ | (0.27 | ) | $ | (0.69 | ) | ||||||
Weighted-average number of common shares used in computing net loss per share — basic and diluted | 120,292,543 | 44,426,402 | 94,464,933 | 44,354,771 |
Source: T2 Biosystems, Inc.