T2 Biosystems Announces Fourth Quarter and Full Year 2019 Financial Results
February 24 2020 - 4:05PM
T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid
detection of sepsis-causing pathogens, today announced financial
results for the fourth quarter and full year ended December 31,
2019.
Fourth Quarter and Recent Business and Financial
Performance Highlights
- Achieved fourth quarter total revenue of $3.1 million and
product revenue of $1.6 million, representing increases of 71% and
18% respectively, compared to the prior year period
- Received CE mark for the T2Resistance Panel, allowing
commercialization throughout the European Union and other CE mark
geographies
- Secured new contracts for ten T2Dx Instruments during the
fourth quarter of 2019
- Appointed John Sperzel as Chief Executive Officer and Tony Pare
as Chief Commercial Officer
Full Year 2019 Business and Financial Performance
Highlights
- Awarded a contract for up to $69 million in milestone-based
product development funding from a U.S. government agency; one of
the largest grants ever awarded to a diagnostics company
- Received a New Technology Add-on Payment (NTAP) for the
T2Bacteria Panel from the Centers for Medicare and Medicaid
Services (CMS); the first in-vitro diagnostic test with this
designation
- Received Breakthrough Device designation from the U.S. Food and
Drug Administration (FDA) for T2Resistance Panel, which is now
available for research use only (RUO) in the U.S. market
- Signed Breakthrough Technology contract with Premier, Inc., a
group purchasing organization, providing access and contracted
pricing to approximately 4,000 U.S. hospitals
- Restructured the CRG Term Loan Agreement, extending the
interest-only payment period through December 2021 and reducing
minimum revenue targets
- Expanded commercial distribution to include thirty-six
countries
“The T2 Biosystems team achieved a number of important clinical
and operational milestones in 2019,” said John Sperzel, President
and CEO of T2 Biosystems. “According to recent data, sepsis is
responsible for the death of nearly 11 million people annually,
more than all cancers combined. In the battle against sepsis, speed
is critical to achieving targeted therapy. T2 Biosystems has the
only FDA cleared system for detecting sepsis-causing pathogens
directly from blood, without the need to wait days for a positive
culture. I believe we have an opportunity to save lives by becoming
the standard of care in the detection of sepsis-causing pathogens,
and drive long-term sustained growth.”
Fourth Quarter 2019 Financial Results Total
revenue for the fourth quarter of 2019 was $3.1 million, an
increase of 71% compared to the prior year period. Product revenue
for the fourth quarter of 2019 was $1.6 million, an increase of 18%
compared to the prior year period. Research revenue for the fourth
quarter of 2019 was $1.5 million, an increase of 200% compared to
the prior year period.
Operating expenses for the fourth quarter of 2019 were $11.9
million, an increase of $2.2 million compared to the prior year
period.
Net loss for the fourth quarter of 2019 was $14.1 million or a
loss of $0.30 per share, compared to a net loss of $15.1 million or
a loss of $0.34 per share in the prior year period.
Full Year 2019 Financial ResultsTotal revenue
for 2019 was $8.3 million, a decrease of 21%, compared to the prior
year period. Product revenue for 2019 was $5.3 million, an increase
of 11% compared to the prior year period. Research revenue for 2019
was $3.0 million, a decrease of 47% compared to the prior year
period.
Operating expenses for 2019 were $43.6 million, an increase of
8% compared to the prior year period.
Net loss for 2019 was $59.0 million or a loss of $1.30 per
share, compared to a net loss of $51.2 million or a loss of $1.26
per share in 2018.
Cash and equivalents as of December 31, 2019 were $11.0 million.
This includes $4.8 million in net proceeds from the sale of 3.8
million shares through the ATM facility during the fourth quarter
of 2019.
2020 Financial OutlookManagement projects
revenue for the full year 2020 to range from $14.0 million to $17.0
million, including product revenue between $8.0 million and $10.0
million and research and grant contribution revenue of $6.0 million
to $7.0 million. Management expects to close approximately 30 T2Dx
Instrument contracts during 2020.
Webcast and Conference Call InformationT2’s
management team will host a conference call today, February 24,
2020, beginning at 4:30pm ET. Investors interested in listening to
the call may do so by dialing 1-877-407-9208 for domestic callers
or 1-201-493-6784 for International callers. A live and recorded
webcast of the call will be available on the “Investors” section of
the Company’s website at www.t2biosystems.com.
About T2 Biosystems T2 Biosystems, a
leader in the rapid detection of sepsis-causing pathogens, is
dedicated to improving patient care and reducing the cost of care
by helping clinicians effectively treat patients faster than ever
before. T2 Biosystems’ products include the T2Dx® Instrument,
T2Candida® Panel, the T2Bacteria® Panel, and the T2ResistanceTM
Panel and are powered by the proprietary T2 Magnetic Resonance
(T2MR®) technology. T2 Biosystems has an active pipeline of future
products, including products for the detection of additional
species and antibiotic resistance markers of sepsis pathogens, and
tests for Lyme disease.
Media Contact: Gina Kent, Vault
Communications gkent@vaultcommunications.com
610-455-2763
Investor Contact: Philip Trip Taylor, Gilmartin
Group philip@gilmartinIR.com 415-937-5406
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T2 Biosystems, Inc.Consolidated
Balance Sheets(In thousands, except share and per
share data)(Unaudited) |
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December 31, |
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December 31, |
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2019 |
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2018 |
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Assets |
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Current assets: |
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|
Cash and cash equivalents |
|
$ |
11,033 |
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$ |
50,805 |
|
Accounts receivable |
|
|
2,825 |
|
|
|
1,786 |
|
Prepaid expenses and other current assets |
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|
1,438 |
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|
1,340 |
|
Inventories |
|
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3,599 |
|
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|
2,677 |
|
Total current assets |
|
|
18,895 |
|
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|
56,608 |
|
Property and equipment,
net |
|
|
5,845 |
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|
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7,315 |
|
Operating lease right-of-use
assets |
|
|
3,360 |
|
|
|
— |
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Restricted cash |
|
|
180 |
|
|
|
180 |
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Other assets |
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|
206 |
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|
206 |
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Total assets |
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$ |
28,486 |
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$ |
64,309 |
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Liabilities and
stockholders’ equity |
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Current liabilities: |
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Notes payable |
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$ |
42,902 |
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$ |
42,373 |
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Accounts payable |
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3,753 |
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|
744 |
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Accrued expenses and other current liabilities |
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|
11,207 |
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|
6,073 |
|
Derivative liability |
|
|
2,425 |
|
|
|
2,142 |
|
Deferred revenue |
|
|
285 |
|
|
|
697 |
|
Current portion of lease incentives |
|
|
— |
|
|
|
268 |
|
Total current liabilities |
|
|
60,572 |
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|
52,297 |
|
Lease incentives, net of
current portion |
|
|
— |
|
|
|
492 |
|
Operating lease liabilities,
net of current portion |
|
|
1,873 |
|
|
|
— |
|
Deferred revenue, net of
current portion |
|
|
46 |
|
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|
133 |
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Commitments and
contingencies |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value; 10,000,000 shares authorized; no
shares issued and outstanding |
|
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— |
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— |
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Common stock, $0.001 par value; 200,000,000 shares authorized;
50,651,535 and 44,175,441 shares issued and outstanding at December
31, 2019 and December 31, 2018, respectively |
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49 |
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|
44 |
|
Additional paid-in capital |
|
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342,123 |
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328,514 |
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Accumulated deficit |
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(376,177 |
) |
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(317,171 |
) |
Total stockholders’ equity |
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(34,005 |
) |
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|
11,387 |
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Total liabilities and
stockholders’ equity |
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$ |
28,486 |
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$ |
64,309 |
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T2 Biosystems, Inc.Consolidated
Statements of Operations and Comprehensive Loss(In
thousands, except share and per share
data)(Unaudited) |
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Year ended |
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December 31, |
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2019 |
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2018 |
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2017 |
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Revenue: |
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Product revenue |
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$ |
5,327 |
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$ |
4,805 |
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$ |
3,440 |
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Research revenue |
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|
563 |
|
|
|
5,695 |
|
|
|
1,226 |
|
Contribution revenue |
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|
2,445 |
|
|
|
— |
|
|
|
— |
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Total revenue |
|
|
8,335 |
|
|
|
10,500 |
|
|
|
4,666 |
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Costs and expenses: |
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Cost of product revenue |
|
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16,763 |
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|
15,404 |
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|
12,028 |
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Research and development |
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16,326 |
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|
14,489 |
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23,733 |
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Selling, general and administrative |
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27,304 |
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25,697 |
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22,757 |
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Total costs and expenses |
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60,393 |
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|
55,590 |
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|
58,518 |
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Loss from operations |
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(52,058 |
) |
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|
(45,090 |
) |
|
|
(53,852 |
) |
Interest expense, net |
|
|
(7,348 |
) |
|
|
(6,682 |
) |
|
|
(8,907 |
) |
Other income, net |
|
|
400 |
|
|
|
619 |
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|
|
331 |
|
Net loss and comprehensive
loss |
|
|
(59,006 |
) |
|
|
(51,153 |
) |
|
|
(62,428 |
) |
Net loss per share — basic and
diluted |
|
$ |
(1.30 |
) |
|
$ |
(1.26 |
) |
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$ |
(1.94 |
) |
Weighted-average number of
common shares used in computing net loss per share — basic and
diluted |
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45,507,754 |
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40,558,826 |
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32,131,512 |
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