NEW YORK — T2 Biosystems on Thursday posted a 10 percent year-over-year drop in fourth quarter revenues on declining COVID-19 test panel sales.
For the three-month period ended Dec. 31, 2021, the molecular diagnostic system and assay maker's revenues were $7.0 million, down from $7.8 million a year earlier but topping the Wall Street consensus estimate of $6.2 million.
While revenues from sepsis test panels and a product development contract with the US Department of Health and Human Services' Biomedical Advanced Research and Development Authority were up, they failed to offset a drop in COVID-19 test revenues, T2 said. Total product sales fell 31 percent in the quarter to $4.0 million from $5.8 million, while research and contribution revenue rose 52 percent to $3.0 million from $2.0 million.
On Wednesday, T2 said that it had struck territory exclusive distribution agreements for its T2Dx benchtop diagnostic system, as well as related T2Bacteria, T2Candida, and T2Resistance sepsis test panels, in Norway, Finland, and Turkey.
T2's net loss in the fourth quarter climbed to $12.1 million, or $.07 per share, from $9.9 million, or $.07 per share, in the same period a year earlier. Analysts had, on average, been expecting a loss per share of $.09.
R&D spending in the quarter jumped 42 percent to $5.4 million from $3.8 million, largely due to increased activity related to the Lexington, Massachusetts-based company's BARDA contract. SG&A expenses, meantime, were up 33 percent to $6.5 million from $4.9 million as the company added to its commercial and medical affairs staffs.
For full-year 2021, T2's revenues were up 55 percent to $28.1 million from $18.1 million in 2020 as higher sepsis test panel sales and BARDA contract activities made up for lower COVID-19 test panel sales. Wall Street had been expecting revenues of $27.5 million for the year.
Product revenue in 2021 was $16.6 million, 43 percent higher than the $11.7 million generated the year before, while research and contribution revenue increased 78 percent to $11.4 million from $6.4 million.
T2's 2021 net loss was $49.2 million, or $.31 per share, versus $46.8 million, or $.39 per share, in 2020. Analysts, on average, projected a loss per share of $.32 for the year.
Full-year 2021 R&D spending rose 35 percent to $21.8 million from $16.1 million, again due to BARDA activities, while SG&A costs were up 29 percent to $28.5 million from $22.1 million in 2020 on headcount increases.
At the end of 2021, T2 had cash and cash equivalents totaling $22.2 million, as well as $1.6 million in restricted cash and $10 million in marketable securities.
Looking ahead, the firm said it expects 2022 revenues in the range of $28.0 million to $31.0 million, including product revenue of $16.0 to $17.0 million and research and contribution revenue of $12.0 to $14.0 million.
T2 also expects to close 60 to 70 T2Dx instrument contracts this year, as COVID-19 testing revenues are expected to decrease to $3.5 million from $9.5 million.
"We made substantial progress across our three corporate priorities during 2021, accelerating our sales, enhancing our operations, and advancing our pipeline," John Sperzel, T2's chairman and CEO, said in a statement. "We are excited to continue this momentum in 2022 with plans to double our T2Dx instruments and sepsis test revenue compared to 2021, improve our product gross margins, and complete the US clinical trials for the T2Resistance and T2Biothreat panels [for antibiotic resistance genes and biothreat-related pathogens, respectively], while we continue to advance the development of our next-generation instrument and comprehensive sepsis panel."
In late morning trading on the Nasdaq, T2's shares were up 11 percent to about $.45.