NEW YORK – T2 Biosystems on Thursday announced preliminary financial results for its fourth quarter and full-year 2023, reporting that its fourth quarter revenues declined 69 percent year over year to $1.7 million from $5.5 million in the same quarter of 2022.
Its Q4 revenues were comprised entirely of product revenue, including record sales of its T2Bacteria Panel in the US, the company said in a statement. Full-year 2023 revenues were $7.2 million, down 68 percent from $22.3 million in 2022. The company executed contracts for 26 T2Dx instruments in 2023. Subsequent to the end of Q4, T2 Bio eliminated its sepsis test back order as of the end of January, it noted. As of Dec. 31, the firm had $15.7 million in cash and cash equivalents.
T2 Biosystems expects full-year 2024 total sepsis and related product revenue of between $10.0 million and $11.0 million, compared to $6.7 million in 2023. The guidance doesn't include potential sales of the T2Biothreat Panel or T2Lyme Panel, it said.
"We made considerable progress across the business during 2023, increasing our global installed base of T2Dx instruments, generating record US sales of our T2Bacteria Panel, strengthening our supply chain and manufacturing operations, advancing multiple new product development initiatives, and strengthening our balance sheet," T2 Chairman and CEO John Sperzel said in a statement.
The company added that it presented a detailed plan to the Nasdaq Listing Qualifications Hearing Panel on Thursday to regain compliance with the exchange's requirement of a minimum $35 million market value of listed securities and noted that a response is expected in the coming weeks. The firm received a delisting notice from Nasdaq in November.
In a separate announcement on Thursday, the company said it has entered into a definitive agreement to convert $15 million of its term loan with entities affiliated with CRG Servicing into T2 Biosystems equity upon stockholder approval. The firm entered into a securities purchase agreement with CRG to facilitate the debt conversion.
Within 10 business days of receiving stockholder approval, CRG will cancel $15 million of outstanding loans in exchange for the issuance of an aggregate of $15 million in shares of common stock at a price per share of either the average closing price of T2's common stock on Nasdaq for five consecutive trading days immediately preceding the date of issuance or the closing price of its common stock on the trading day immediately preceding the date of issuance, whichever is lower.
Lastly, T2 said on Thursday that it has entered territory-exclusive distribution agreements for new geographies in the Netherlands, Belgium, and Vietnam. Under the terms of the agreements, T2 will sell its T2Dx instrument, T2Bacteria Panel, T2Candida Panel, and T2Resistance Panel in the countries through its distribution partners. The partners are Aidian Netherlands for the Netherlands and Belgium and Kigen Limited for Vietnam.
In addition, the firm's current distribution partner Biomedica is reentering the Switzerland market with T2's sepsis products in an exclusive agreement.
"We are committed to expanding our commercialization worldwide, and these new distribution agreements provide access to important markets in Europe and Asia," Sperzel said. "We believe these countries represent additional growth potential for our culture-independent rapid diagnostics and look forward to building lasting relationships with our newly appointed distributors as we work to improve the quality of care for patients at risk of sepsis."