NEW YORK (GenomeWeb) – T2 Biosystems reported after the close of the market on Monday that its fourth quarter revenues fell nearly 10 percent, despite a 69 percent increase in product revenues driven by an increase in sales of its T2Candida panel.
For the three-month period ended Dec. 31, T2's revenues fell to $910,000 from $1.0 million in the same period the year before, missing the Wall Street consensus estimate for revenues of $1.4 million.
Product revenues rose to $579,000 from $343,000 in Q4 2015. Meanwhile, the company reported research revenues of $331,000.
The company also said it secured commitments in Q4 that will provide it access to an estimated 100,000 additional patients annually considered to be at high risk for sepsis infections, across 14 new hospitals in the US and four in Europe.
For the full-year 2016, T2's revenues rose to $4.1 million from $2.8 million in 2015, missing the Wall Street consensus estimate for yearly revenues of $4.6 million.
Product revenues skyrocketed to $1.8 million from $599,000 in 2015, and were primarily derived from a combination of instrument and consumable sales. Meanwhile, the company reported research revenues of $2.3 million for the year.
T2's worldwide installed base rose to 143 hospitals with access to the T2Dx Instrument, representing an estimated 445,000 high-risk patients annually who are considered to be at high risk of sepsis infections.
"2016 was a transformative year for T2. We are especially encouraged by our overall performance in the second half of 2016 and expect that momentum to continue into 2017," T2 President and CEO John McDonough said in a statement. "During the year, we made impressive progress against our priorities — significantly expanded our customer base, announced two exciting partnerships with Allergan and Bayer, extended our partnership with Canon USA, and highlighted the power of our technology through compelling customer success stories that demonstrate millions of dollars in savings our products can bring to hospitals."
On a call with analysts following the release of the earnings, McDonough added that the company's performance in Europe this year exceeded expectations, as T2 began distributing its panels in eight countries on the continent compared to the expected four. Europe will continue to be a focus for the firm in 2017, he said.
At the end of the year, T2 had cash and cash equivalents totaling $73.5 million.
The firm did not provide figures for net income or loss, earnings or loss per share, R&D, or SG&A for either the quarter of the full year. CFO Shawn Lynch noted on the call that T2 is still going through its financial details with auditors and expects to release its full financials in a filing with the US Securities and Exchange Commission "in due course."
Looking ahead, T2 said it expects an increase in the number of high-risk patients at customer facilities by 200,000 patients for the 12-month period ended Sept. 30, 2017. Further, the company anticipates higher product revenue in the Q1 2017 from an increase in T2Candida Panel sales due to increased patient testing across the installed base.
Lynch also said T2 is expecting to post higher product revenues in Q1 than it did this quarter.
McDonough added that the company is also expecting to file a 510k application with the US Food and Drug Administration in the middle of the year for its T2Bacteria panel, and that it will complete preclinical studies for its T2Lyme panel by the end of 2017. T2 is aiming to start FDA clinical trials for T2Lyme in 2018.