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T2 Biosystems Preliminary Q4 Revenues up 67 Percent, Firm Announces CEO Transition

NEW YORK – T2 Biosystems announced on Thursday that its preliminary 2019 fourth quarter revenues increased 67 percent year over year.

The Lexington, Massachusetts-based firm also said that John Sperzel has assumed the position of president and CEO of T2 Biosystems as of January 8, 2020. He replaces John McDonough in both roles.

Lastly, the company announced an exclusive distribution deal for its tests in Israel.

For the three months ended December 31, 2019, T2 Biosystems saw revenues of approximately $3 million, which would be up from $1.8 million in Q4 2018. The Wall Street consensus is for $3.7 million in revenues for the recently completed quarter.

Product revenues grew 15 percent year over year to $1.5 million, while research and grants contributed $1.5 million in revenues, T2 Bio said. 

In the quarter, the firm secured contracts for 10 instruments, and received CE mark for its T2 Resistance Panel product which detects 13 genes conferring antimicrobial resistance directly from whole blood.

It also raised $4.8 million net proceeds from the sale of 3.8 million shares through its at-the-market facility, and has not utilized its $30.0 million equity credit line, it said.

T2 Biosystems finished the quarter with cash and cash equivalents of $11.0 million.

"We ended the year with positive momentum in our business, with the addition of new customers and expansion of patient testing at existing customers, a clear sign that the value of our products is being realized," said McDonough, now T2Biosystem's non-executive chairman,  in a statement.

Sperzel, who is now head of the company, was previously the CEO of Chembio Diagnostics.

The company also said that it signed a distribution agreement with an undisclosed partner to introduce the T2 Resistance, T2Bacteria, and T2Candida panels in Israel, which has more than 40 target hospitals. T2 Biosystem's technology is now available in 36 countries outside the US, it added.