LEXINGTON, Mass. - T2 Biosystems, Inc. (NASDAQ: NASDAQ:TTOO), a company specializing in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes, has announced the sale of four T2Dx Instruments to its European distributor. With a current market capitalization of just $7.2 million and trailing twelve-month revenue of $7.68 million, this move marks a significant step in the company's international commercial expansion and market penetration efforts. According to InvestingPro data, the company faces challenges with cash management and profitability.
The sale includes the distribution of instruments to various hospitals across multiple European countries, aiming to enhance the use of T2 Biosystems' diagnostic panels, including the T2Bacteria Panel, the T2Candida Panel, and the T2Resistance Panel. The instruments will be deployed in a range of settings: a second unit to a major reference hospital for expanded sales, a first unit to a hospital in a new market country, and two units to hospitals in countries already familiar with T2 Biosystems' technology.
John Sperzel, Chairman and CEO of T2 Biosystems, emphasized the significance of the international distributors' role in broadening the T2Dx Instruments' global footprint and making direct-from-blood diagnostic tests available to more patients with sepsis. InvestingPro analysis reveals the company's financial challenges, with a total debt of $18.94 million and a concerning current ratio of 0.4, indicating potential liquidity constraints. InvestingPro subscribers have access to 15 additional key insights about TTOO's financial health and market position.
The T2Resistance Panel, which is used with the T2Dx Instrument, is designed to detect 13 antibiotic resistance genes from bacterial pathogens directly from blood samples in 3-5 hours. This panel is currently available in Europe with a CE mark and has received Breakthrough Device designation from the FDA, signaling an expedited review process. While the company shows promise in its technology, InvestingPro data indicates significant financial headwinds, with a -30.19% revenue decline in the last twelve months and negative gross profit margins. Get the complete financial picture with InvestingPro's comprehensive research report, available for over 1,400 US stocks. T2 Biosystems plans to submit an FDA 510(k) premarket notification for the T2Resistance Panel in the next quarter.
A study published in March 2024 in the Journal of Clinical Microbiology highlighted the T2Resistance Panel's high accuracy and rapid results, indicating a significant clinical impact, with clinical interventions in 41% of patients involved in the study.
T2 Biosystems continues to develop new products, including the T2Lyme Panel and an expanded T2Candida Panel that will add detection of Candida auris. The company's goal is to improve patient care and reduce healthcare costs by enabling quicker and more effective treatment.
This news article is based on a press release from T2 Biosystems.
In other recent news, T2 Biosystems, a medical diagnostics innovator, has extended its supplier agreement with Vizient until March 2026. The agreement covers the T2Dx Instrument and the T2Bacteria and T2Candida Panels, which are the only FDA-cleared products capable of detecting sepsis-causing pathogens directly from whole blood. Despite this strategic partnership, financial metrics reveal the company is facing challenges, including a negative gross profit margin and rapidly depleting cash reserves.
T2 Biosystems also reported a 34% increase in revenue for the third quarter of 2024, reaching $2.0 million. This growth was primarily driven by the FDA-cleared T2Bacteria Panel, which saw a 173% surge in sales. The company also secured 11 T2Dx instrument contracts, contributing to a 78% rise in international sales.
Furthermore, T2 Biosystems is confronting a potential delisting from The Nasdaq Capital Market due to non-compliance with the exchange's minimum bid price requirement. The company has requested a hearing to address this issue. In terms of strategic partnerships, T2 Biosystems has expanded its reach through an exclusive commercial distribution agreement with Cardinal Health (NYSE:CAH) and new distribution agreements in Malaysia and Indonesia. These recent developments are expected to contribute to the company's revenue growth starting in 2025.
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