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T2 Biosystems to license sepsis detection tech

Published 12/09/2024, 09:05 AM
CAH
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The company's decision to license its technology comes at a time when it has achieved record growth in sepsis test sales in 2024 and has established a commercial agreement with Cardinal Health (NYSE: NYSE:CAH). The move is seen as an opportunity to capitalize on the company's robust patent portfolio and scientific expertise, with the goal of improving patient outcomes, reducing mortality rates, and lowering healthcare costs by enabling faster, targeted antimicrobial decisions. Cardinal Health, which InvestingPro data shows has delivered an impressive 25.84% return over the past six months, continues to strengthen its position in the healthcare sector with strategic partnerships like this one. For detailed analysis of over 1,400 stocks including comprehensive Pro Research Reports, investors can access additional insights through InvestingPro's healthcare sector coverage. Cardinal Health, which InvestingPro data shows has delivered an impressive 25.84% return over the past six months, continues to strengthen its position in the healthcare sector with strategic partnerships like this one. For detailed analysis of over 1,400 stocks including comprehensive Pro Research Reports, investors can access additional insights through InvestingPro's healthcare sector coverage.

The company's technology, including its T2 Magnetic Resonance (T2MR®) detection, is a cornerstone of its T2Dx® Instrument, T2Bacteria® Panel, and T2Candida® Panel. These products are noted as the only FDA-cleared diagnostics capable of identifying sepsis-causing bacterial and fungal pathogens directly from whole blood within 3-5 hours, bypassing the days-long wait typically associated with positive blood culture results.

In a recent development, T2 Biosystems (NASDAQ:TTOO) successfully defended a key patent related to its sample preparation method against an opposition filed with the European Patent Office (EPO) by bioMerieux and another global diagnostics company. The patented method focuses on amplifying a target nucleic acid characteristic of a pathogen in a whole blood sample.

John Sperzel, Chairman and CEO of T2 Biosystems, stated that the company's patented sample processing could potentially be adapted to other detection methods, such as fluorescence. This adaptation could allow other diagnostic platforms to integrate the company's direct-from-whole-blood capabilities, thereby expanding the market access to this innovative diagnostic approach.

The company's decision to license its technology comes at a time when it has achieved record growth in sepsis test sales in 2024 and has established a commercial agreement with Cardinal Health (NYSE: CAH). The move is seen as an opportunity to capitalize on the company's robust patent portfolio and scientific expertise, with the goal of improving patient outcomes, reducing mortality rates, and lowering healthcare costs by enabling faster, targeted antimicrobial decisions.

Competitors in the field currently rely on positive blood culture results to detect sepsis-causing pathogens and antibiotic resistance, which can take several days and may result in false negatives due to poor sensitivity. The integration of T2 Biosystems' technology into other diagnostic platforms could provide hospitals with multiple sepsis solutions, potentially transforming the landscape of sepsis detection.

This article is based on a press release statement from T2 Biosystems, Inc.

In other recent news, Cardinal Health has been making noteworthy strides in its operations and financial performance. The company has successfully raised $2.9 billion through a public offering of senior notes, which will partially finance the planned acquisitions of The GI Alliance Holdings, LLC, and Advanced Diabetes Supply Group. Mizuho (NYSE:MFG) Securities has initiated coverage on Cardinal Health shares, recommending an Outperform rating and setting a price target of $139, citing the company's consistent EBIT growth.

In recent developments, Cardinal Health announced an increase in earnings per share (EPS) and adjusted free cash flow expectations for fiscal year 2025, despite a 4% decrease in total revenue. This positive financial performance is largely attributed to the company's operations, particularly in the Pharmaceutical (TADAWUL:2070) and Specialty Solutions segment. The company also announced plans to acquire Integrated Oncology Network for $1.1 billion.

During the recent annual meeting, all 10 board nominees were elected and the executive compensation was approved. Ernst & Young LLP was ratified as the company's independent auditor for the fiscal year ending June 30, 2025. These developments underscore the confidence of shareholders in the company's governance and executive leadership. As Cardinal Health continues to focus on specialty and at-home solutions while exploring further M&A opportunities, it remains optimistic about its long-term profit goals and growth strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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