In This Article:
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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T2 Biosystems Inc (NASDAQ:TTOO) reported a 34% increase in third-quarter revenue compared to the prior year, driven by strong sales of sepsis test panels.
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The company executed contracts for 11 T2 DX instruments, with significant international sales growth of 78% compared to the previous year.
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T2 Biosystems Inc (NASDAQ:TTOO) entered into an exclusive commercial distribution agreement with Cardinal Health, which is expected to significantly expand their access to over 6,000 US hospitals.
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The company is actively advancing its product pipeline, with several programs receiving FDA breakthrough device designation, including the T2 Resistance Panel.
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Operational improvements include converting 80% of debt to common stock, reducing quarterly interest payments, and implementing cost-saving measures such as consolidating real estate space.
Negative Points
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T2 Biosystems Inc (NASDAQ:TTOO) reported a net loss of $10.1 million for the third quarter of 2024, although this was an improvement from the previous year's loss.
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The company received a notice from NASDAQ indicating that its market value had been trading below listing requirements, prompting an appeal.
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Despite revenue growth, the cost of product revenues increased by 4%, driven by higher international instrument and sepsis test sales.
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Selling, general, and administrative expenses decreased by only 10%, partially offset by increased legal expenses.
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The company continues to rely on raising capital through its ATM facility and is exploring other sources of capital, indicating ongoing financial challenges.
Q & A Highlights
Q: Has Cardinal Health already started marketing T2 Biosystems' products, and what impact do you expect this partnership to have on the fourth quarter financials? Additionally, do you anticipate a shift in instrument sales towards the U.S. due to this partnership? A: Yes, Cardinal Health has begun marketing T2 Biosystems' products. We expect this partnership to increase our instrument and consumable sales in the U.S. significantly. Cardinal Health's extensive reach and credibility in U.S. hospitals make them an ideal partner, and we anticipate this collaboration will have a significant impact in 2025, with potential effects in the fourth quarter of 2024. (John Sperzel, CEO)
Q: Regarding the Lyme Disease Test (LDT), should we expect it to contribute to top-line revenue in the first half of 2025? A: Yes, that is our plan. The Lyme disease season typically starts around April or May, so we are targeting the latter half of the second quarter for launching the LDT. (John Sperzel, CEO)