NEW YORK – Molecular diagnostic system and assay maker T2 Biosystems said on Thursday that its third quarter revenues increased 42 percent year over year.
For the three months ended Sept. 30, the company reported revenues of $7.4 million compared to $5.2 million in the prior-year period, beating analysts' consensus estimate of $5.7 million.
"Our third quarter results demonstrate meaningful progress across our corporate priorities, accelerating our sales, enhancing our operations, and advancing our pipeline," T2 Biosystems CEO John Sperzel said in a statement.
T2's Q3 product revenues increased 15 percent year over year to $4.3 million from $3.8 million.
It also generated a US sepsis test panel utilization annualized run rate of $115,000 per legacy sepsis instrument, representing growth of 55 percent compared to the prior year period, T2 said.
The firm's research and grant contribution revenue for the quarter was $3.1 million, more than double the $1.5 million of the prior-year period. The firm reported no research revenue in the quarter compared to $56,000 in Q3 2019.
T2 said that in Q3 it sold eight T2Dx instruments in the quarter. It also expanded commercialization into the Asia-Pacific region, signing distribution agreements in Korea and Singapore that resulted in two T2Dx instruments sold during the third quarter and contracts for four T2Dx instruments to be sold during the fourth quarter.
In the quarter, T2 received Option 2A of a multiple year product development contract with the US Department of Health and Human Services' Biomedical Advanced Research and Development Authority, or BARDA, valued at $6.4 million, following successful completion of Option 1 development milestones.
The firm reported research and development expenses of $6.4 million, up 68 percent from $3.8 million in Q3 2020. Its sales and general administrative expenses were $8.5 million, a 60 percent jump from $5.3 million in the prior year quarter.
"We believe our commercial and medical affairs investments will enable greater adoption and utilization of our current sepsis products, and our pipeline of new products will lead to even greater growth opportunities," Sperzel said.
The firm's net loss for the third quarter was $14.0 million, or $.08 per share, compared to a net loss of $11.3 million, or $.08 per share in the prior year period. The loss per share was in line with analysts' consensus estimate.
The firm ended Q3 with cash and cash equivalents of $22.0 million and current marketable securities of $20.0 million.
T2 Biosystems expects revenue for full year 2021 to be between $25.0 million and $27.0 million. Product revenue is expected to be between $15.0 million and $16.0 million. The company also said that it continues to expect to enter into at least 30 T2Dx Instrument contracts in 2021.