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T2 Biosystems Preliminary Q2 Revenues Up About 40 Percent; Firm Launches COVID-19 Test

NEW YORK – T2 Biosystems is anticipating about a 40 percent jump in second quarter 2020 revenues, the firm said on Tuesday. It has also completed validating and launched a molecular diagnostic test for SARS-CoV-2.

Lexington, Massachusetts-based T2 estimates total Q2 revenues to be in the range of $2.4 million to $2.6 million, compared to revenues of $1.8 million in the prior-year period.

Product revenues for the quarter are expected to be $1.0 million to $1.1 million, a decline of about 19 percent compared to $1.3 million in Q2 2019, but revenue from research and grants is expected to rise to between $1.4 million and $1.5 million, almost tripling the $500,000 in revenues for last year's second quarter.

"Amid the COVID-19 pandemic, we have seen increased test utilization at existing US customer sites, a clear sign of the clinical utility of our sepsis-related products," T2's President and CEO John Sperzel said in a statement.

During the second quarter of 2020, T2 also raised $8.4 million of net proceeds from the sale of 6.4 million shares through its at-the-market facility. It recently regained compliance with listing requirements after Nasdaq issued a warning in April.

Cash and cash equivalents as of June 30, 2020 are expected to be approximately $36.5 million, the firm said.

The company also announced the release of a molecular assay for COVID-19.

The T2SARS-CoV-2 Panel is a sample-to-answer test that provides results from a nasopharyngeal swab sample in less than two hours. Clinical testing of the assay by T2 showed 95 percent sensitivity and 100 percent specificity, the firm said.

The SARS-CoV-2 test runs on the firm's T2Dx instrument, which also runs T2's FDA-cleared T2Bacteria Panel and T2Candida Panel that detect sepsis-causing organisms directly from whole blood. The instrument is fully automated, offers random access, and performs up to seven tests at a time.

The T2SARS-CoV-2 test was developed under a license agreement with Hackensack Meridian Health, as previously reported, and is being commercially distributed after validation, which the firm said meets the requirements for an Emergency Use Authorization request to the US Food and Drug Administration.

"Given the susceptibility of critically-ill COVID-19 patients to develop bacterial or fungal co-infections and secondary infections that can lead to sepsis, we believe our platform can be used to identify acute COVID-19 infections, and optimize outcomes for patients under intensive care," Sperzel said.

In a report following the release of the preliminary earnings, analysts at SVB Leerink suggested T2's COVID-19 test has the potential to provide a slight incremental boost to the firm's revenues for the second half of the year if the test is utilized in the installed base of 41 US instruments. 

T2 Biosystems expects to provide complete second quarter 2020 financial results in early August.