T2 Biosystems Announces Preliminary First Quarter 2020 Financial Results

Suspends 2020 Financial Guidance

LEXINGTON, Mass., March 24, 2020 (GLOBE NEWSWIRE) -- T2 Biosystems, Inc. (NASDAQ:TTOO), a leader in the rapid detection of sepsis-causing pathogens, today announced unaudited, preliminary financial result estimates for the quarter ended March 31, 2020, and suspended full year 2020 financial and operational guidance due to uncertainties from the impact of the novel coronavirus (COVID-19) pandemic.

The Company continues to leverage its technology and scientific expertise to aid in the COVID-19 response while prioritizing the health and safety of its employees and customers. T2 Biosystems recently announced a licensing agreement to support development of a rapid COVID-19 test, developed by the Center of Discovery and Innovation (CDI) at Hackensack Meridian Health, enabling a larger role in the pandemic response.

The licensed coronavirus assay has been used by healthcare professionals within the Hackensack Meridian Health network, under the U.S. Food and Drug Administration’s Emergency Use Authorization guidance, to test and treat patients suspected of having coronavirus. T2 Biosystems intends to adapt the newly licensed COVID-19 test to run on its T2Dx Instrument, the same instrument used for the FDA-cleared T2Bacteria and T2Candida Panels, allowing the detection of both coronavirus and associated secondary bacterial or fungal infections that may lead to sepsis.  

Preliminary Unaudited First Quarter Financial Results

• Estimated first quarter 2020 total revenue is expected to be in the range of $2.2 million to $2.6 million, compared to $1.8 million in total revenue the first quarter of 2019.
  • Estimated first quarter product revenue is expected to be in the range of $0.9 million to $1.1 million, compared to product revenue of $1.3 million in the prior year period.
  • Estimated first quarter research and grant contribution revenues are expected to be in the range of $1.3 million to $1.5 million, compared to research and grant contribution revenue of $0.5 million in the prior year period.
• Cash and cash equivalents as of March 31, 2020 are expected to be approximately $30.0 million.

“As a result of impacts from the COVID-19 pandemic, we recently began to experience disruption to our commercial operations. We are unsure of the magnitude or duration of these impacts in 2020, and we are making the necessary adjustments to minimize impact to our business,” said President and Chief Executive Officer, John Sperzel. “With the newly-licensed coronavirus test being adapted to the T2Dx Instrument, we are working to provide a comprehensive offering to enable the detection and early targeted treatment of COVID-19 patients and the related co-infections and secondary infections that cause sepsis. With our proprietary technology and its detection capability, we believe we are well positioned to address an urgent healthcare need for rapid diagnostic testing.”