NEW YORK – T2 Biosystems reported after the close of the market on Thursday that its second quarter revenues rose 162 percent year over year due primarily to increased test panel sales.
For the three months ended June 30, the company posted revenues of $6.7 million compared to $2.6 million in Q2 2020, beating analysts' average estimate of $6.1 million.
The Lexington, Massachusetts-based firm reported product revenue of $3.7 million, up 253 percent year over year from $1.0 million. It recorded no research revenue for the recently completed quarter compared to $11,000 a year ago, while contribution revenue doubled to $3.0 million from $1.5 million in the prior-year period, driven by US Department of Health and Human Services' Biomedical Advanced Research and Development Authority (BARDA) contract activity.
The company said it generated a second quarter US sepsis test panel utilization annualized run rate of approximately $98,000 per legacy sepsis instrument. It also sold three T2Dx instruments during the second quarter and achieved routine use for T2Bacteria and T2Candida panels in three additional accounts following tenders won in Austria, France, and Kuwait.
In the quarter, T2 received a New Technology Add-on Payment extension for the T2Bacteria panel from the US Centers for Medicare and Medicaid Services for fiscal year 2022, and it accelerated new product development initiatives under its BARDA contract including the T2Resistance panel. T2 plans to initiate a clinical trial for the panel in the first quarter of 2022.
John Sperzel, president and CEO of T2 Biosystems, said in a statement that the firm's increased investments in US commercial expansion and medical and clinical affairs, as well as increased presence at scientific and industry meetings, "positions us favorably to drive greater awareness and adoption of T2Biosystems' products."
The firm's net loss was $12.5 million, or $.08 per share, in Q2 2021 compared to a net loss of $10.7 million, or $.09 per share, in Q2 2020, matching the consensus Wall Street estimate for a loss of $.08 per share.
T2 said its Q2 R&D costs were $5.4 million, up 42 percent from $3.8 million in the prior-year quarter, and its SG&A expenses increased 36 percent to $7.2 million from $5.3 million in Q2 2020.
T2 finished Q2 2021 with $32.7 million in cash and cash equivalents, and $20.1 million in marketable securities.
T2 expects revenue for full-year 2021 to be between $24.0 million and $26.0 million.
Product revenue expectations were lowered to between $14.0 million and $15.0 million from the previous expectation of between $16.0 million to $18.0 million. The firm said this was driven by lower T2SARS-CoV-2 panel sales partially offset by increased sepsis test panel sales.
Research and contribution revenue is now expected to be between $10.0 million and $11.0 million, however, compared to the previous expectation of $8.0 million, driven by accelerated progress under the BARDA contract.
The company continues to expect to enter into at least 30 T2Dx Instrument contracts in 2021.