T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid
detection of sepsis-causing pathogens, today announced financial
results for the first quarter ended March 31, 2020.
Recent Highlights
- Achieved first quarter total revenue of $2.5 million and
product revenue of $1.0 million, representing an increase of 43%
and a decrease of 20% respectively, compared to the prior year
period
- Executed a worldwide licensing agreement for COVID-19 assay
design, to accelerate the development of the T2SARS-CoV-2 TM Panel
for the T2Dx® Instrument
- Received multiyear Innovative Technology contract from Vizient,
Inc., the largest healthcare group purchasing organization in the
U.S., providing access and contracted pricing for the T2Dx
Instrument, T2Candida® Panel and T2Bacteria® Panel
- Implemented cost savings initiatives across the business
resulting in a reduced cost structure and a headcount reduction of
22%
“I am proud of my colleagues for their unwavering commitment to
advancing our mission despite the difficulties created by the
greatest public healthcare challenge of our lifetime. We continue
to deliver our life-saving products to hospitals to aid in the
rapid detection of sepsis-causing pathogens, which is essential
given the susceptibility of COVID-19 patients to co-infections and
secondary infections that can lead to sepsis,” said John Sperzel,
President and CEO of T2 Biosystems. “We are fully committed to our
2020 priorities, which now include the development of a SARS-CoV-2
molecular diagnostic test, and have taken important steps to
strengthen our balance sheet during the first quarter and to
significantly reduce our operating expenses going forward.”
First Quarter 2020 Financial Results
Total revenue for the first
quarter of 2020 was $2.5 million, an increase of 43% compared to
the prior year period. Product revenue for the first quarter of
2020 was $1.0 million, a decrease of 20% compared to the prior year
period. Research revenue for the first quarter of 2020 was $1.5
million, an increase of 218% compared to the prior year
period.
Costs and operating expenses
for the first quarter of 2020 were $16.1 million, an increase of
$0.8 million compared to the prior year period. First quarter 2020
costs and expenses include the write-down of inventories and
T2-owned instruments of $1.2 million impaired from the impact of
COVID-19 on our business and severance costs from our cost
reduction program of approximately $0.4 million which represent a
portion of anticipated annual cost reductions of more than $3.7
million.
Net loss for the first
quarter of 2020 was $15.0 million or a loss of $0.22 per share,
compared to a net loss of $15.1 million or a loss of $0.34 per
share in the prior year period.
Total cash and equivalents
as of March 31, 2020 were $36.5 million and include net proceeds of
$40.1 million from the sale of 68.2 million shares through the ATM
and equity credit line facilities during the first quarter of
2020.
2020 Financial OutlookOn March 24, 2020 due to disruption and
uncertainties related to the ongoing COVID-19 pandemic, the Company
suspended financial and operational guidance for 2020.
Webcast and Conference Call
InformationT2’s
management team will host a conference call today, May 5, 2020,
beginning at 4:30pm ET. Investors interested in listening to the
call may do so by dialing 1-800-263-0877 for domestic callers or
1-856-344-9283 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 the T2CaurisTM Panel, T2SARS-CoV-2TM Panel, and
T2Lyme TM Panel, as well as additional products for the detection
of bacterial and fungal pathogens and associated antimicrobial
resistance markers, as well as biothreat pathogens.
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, the
adaptation of the COVID-19 test on the Company’s
T2Dx® Instrument, additional patients, timing of testing
patients, 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. The preliminary, estimated financial
results for the first quarter contained in this document are
subject to the completion of management’s and the audit committee’s
final reviews and our other financial closing procedures and are
therefore subject to change. 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 December 31, 2019, filed with the U.S. Securities and
Exchange Commission, or SEC, on March 16, 2020, and other
filings the company makes with the SEC from time to time. These and
other important factors could cause actual results to differ
materially from those indicated by the forward-looking statements
made in this press release. Any such forward-looking statements
represent management’s estimates as of the date of this press
release. While the company may elect to update such forward-looking
statements at some point in the future, unless required by law, it
disclaims any obligation to do so, even if subsequent events cause
its views to change. Thus, no one should assume that the Company’s
silence over time means that actual events are bearing out as
expressed or implied in such forward-looking statements. These
forward-looking statements should not be relied upon as
representing the company’s views as of any date subsequent to the
date of this press release.
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
T2 BIOSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands, except share and per share data) (Unaudited)
|
|
March 31,2020 |
|
|
December 31,2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
36,323 |
|
|
$ |
11,033 |
|
Accounts receivable |
|
|
2,454 |
|
|
|
2,825 |
|
Inventories |
|
|
3,275 |
|
|
|
3,599 |
|
Prepaid expenses and other current assets |
|
|
1,716 |
|
|
|
1,438 |
|
Total current assets |
|
|
43,768 |
|
|
|
18,895 |
|
Property and equipment, net |
|
|
4,232 |
|
|
|
5,845 |
|
Operating lease right-of-use
assets |
|
|
2,966 |
|
|
|
3,360 |
|
Restricted cash |
|
|
180 |
|
|
|
180 |
|
Other assets |
|
|
206 |
|
|
|
206 |
|
Total assets |
|
$ |
51,352 |
|
|
$ |
28,486 |
|
Liabilities and
stockholders’ (deficit) equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Notes payable |
|
$ |
43,400 |
|
|
$ |
42,902 |
|
Accounts payable |
|
|
1,686 |
|
|
|
3,753 |
|
Accrued expenses and other current liabilities |
|
|
10,029 |
|
|
|
11,207 |
|
Derivative liability |
|
|
2,314 |
|
|
|
2,425 |
|
Deferred revenue |
|
|
238 |
|
|
|
285 |
|
Total current liabilities |
|
|
57,667 |
|
|
|
60,572 |
|
Operating lease liabilities, net
of current portion |
|
|
1,350 |
|
|
|
1,873 |
|
Deferred revenue, net of current
portion |
|
|
32 |
|
|
|
46 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’ (deficit)
equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no
shares issued and outstanding at March 31, 2020 and
December 31, 2019 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized;
119,172,630 and 50,651,535 shares issued and outstanding at
March 31, 2020 and December 31, 2019, respectively |
|
|
119 |
|
|
|
51 |
|
Additional paid-in capital |
|
|
383,310 |
|
|
|
342,121 |
|
Accumulated deficit |
|
|
(391,126 |
) |
|
|
(376,177 |
) |
Total stockholders’ (deficit) equity |
|
|
(7,697 |
) |
|
|
(34,005 |
) |
Total liabilities and
stockholders’ (deficit) equity |
|
$ |
51,352 |
|
|
$ |
28,486 |
|
T2 BIOSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS (In thousands, except share and per share
data) (Unaudited)
|
|
Three Months
EndedMarch 31, |
|
|
|
2020 |
|
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
Product revenue |
|
$ |
1,045 |
|
|
$ |
1,314 |
|
Research revenue |
|
|
— |
|
|
|
142 |
|
Contribution revenue |
|
|
1,500 |
|
|
|
329 |
|
Total revenue |
|
|
2,545 |
|
|
|
1,785 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of product revenue |
|
|
4,671 |
|
|
|
4,388 |
|
Research and development |
|
|
4,938 |
|
|
|
3,901 |
|
Selling, general and administrative |
|
|
6,497 |
|
|
|
7,055 |
|
Total costs and expenses |
|
|
16,106 |
|
|
|
15,344 |
|
Loss from operations |
|
|
(13,561 |
) |
|
|
(13,559 |
) |
Interest expense, net |
|
|
(1,417 |
) |
|
|
(1,782 |
) |
Other income, net |
|
|
29 |
|
|
|
194 |
|
Net loss and comprehensive
loss |
|
$ |
(14,949 |
) |
|
$ |
(15,147 |
) |
Net loss per share — basic and
diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.34 |
) |
Weighted-average number of common
shares used in computing net loss per share — basic and
diluted |
|
|
68,637,322 |
|
|
|
44,282,345 |
|
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