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TTOO

T2 Biosystems NasdaqCM:TTOO Stock Report

Last Price

US$0.099

Market Cap

US$34.9m

7D

-8.2%

1Y

-88.5%

Updated

05 Oct, 2022

Data

Company Financials +
TTOO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health0/6
Dividends0/6

TTOO Stock Overview

T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States and internationally.

T2 Biosystems, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for T2 Biosystems
Historical stock prices
Current Share PriceUS$0.099
52 Week HighUS$0.96
52 Week LowUS$0.089
Beta0.48
1 Month Change-13.75%
3 Month Change-38.37%
1 Year Change-88.48%
3 Year Change-95.63%
5 Year Change-97.73%
Change since IPO-99.31%

Recent News & Updates

Sep 29

T2 Biosystems announces BARDA exercise of contract option 3 valued at $3.7M

Biomedical Advanced Research and Development Authority (or BARDA) is providing T2 Biosystems (NASDAQ:TTOO) an additional $3.7M in funding for the multiple-year cost-share contract. BARDA is a part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services. The total potential BARDA funding if all contract options are exercised is $62M, reflecting a reduction in the scope of work under contract option 3. "We are pleased to advance the U.S. clinical trials for the T2Resistance Panel and T2Biothreat Panel, in collaboration with BARDA, and subsequently file submissions with FDA for U.S. regulatory clearance. These new products will expand the test menu on our T2Dx Instrument and have the potential to reduce the threat of antimicrobial resistance and protect the nation from biothreat pathogens.” stated John Sperzel, Chairman and CEO.

Sep 22

T2 Biosystems stock rises ~17% after hours on Baltic region distribution agreement

T2 Biosystems (NASDAQ:TTOO) on Thursday said it had entered into a distribution agreement in the Baltic region for the sale of its products. Shares of the micro-cap diagnostics company jumped 17.3% to $0.10 after hours. It is worth noting that TTOO stock had earlier closed 11.8% lower to notch its eight straight session in the red. As per the agreement with the distributor, TTOO can sell products such as its T2Bacteria Panel, which can identify sepsis-causing bacteria, and its T2Candida Panel, which can detect fungal pathogens. "We are committed to expanding our commercialization worldwide and these new distribution agreements provide access to important markets in Lithuania, Latvia, and Estonia,” TTOO CEO John Sperzel said in a statement.

Aug 26

T2 Biosystems' Survival Riddle

Summary T2's ongoing survival is a marvel to behold. T2's products fill key niches but have yet to show any viable commercial appeal. The elephant in the room for T2 shareholders is whether it will ever participate in any upside that may reside in its intellectual property. T2 Biosystems (TTOO) is a bygone favorite of mine that has bumped along on the fringes. I last discussed it in 08/2020's "COVID-19 Opportunity Knocks, T2 Answers". At the time, T2 was hoping to use interest in its rapid COVID diagnostics to place its T2Dx diagnostic device in hospitals. T2's strategy has been successful, but at an insufficient scale to turn it around. Placing devices is an important focus of T2's business development strategy. During T2's Q2 2022 earnings call (the "Call"), CEO Sperzel advised that its strategy was playing out as planned. It was gradually transitioning instruments that had been used for processing T2SARS-CoV-2 panels to use for sepsis testing. As a result, T2 has been experiencing an expected decline in COVID testing. [It] view[s] this development as a positive because it allows [it] to convert COVID-driven instruments to sepsis testing. As a reminder, [it] sold 47 T2Dx instruments to hospital microbiology labs during 2020, initially for COVID-19 testing, with the expectation that approximately 80% would convert to ... sepsis test panels over time. Selling instruments is an important driver of revenues for T2. Once an instrument is placed, it generates ongoing revenues. During the Call Sperzel explained: From an instrument pull-through perspective, in the United States, we achieved annualized sepsis tests utilization of $106,000 for legacy instruments. We continue to believe that annualized US sepsis test utilization will reach $200,000 per instrument and we have a number of customers that have already surpassed that target. We believe there is a significant market opportunity for our products, and we're excited to expand our presence in new and existing customers. During the Call, he also advised that T2's installed base of instruments includes a total of 155, 94 in the US and 61 internationally. When you consider that the instrument was FDA approved in 09/2014, this is a discouraging total. T2 has gone from troubled to extremely troubled, but somehow it keeps on ticking. My first (11/2019) T2 article, "T2: Navigating The Danger Zone", presented a cautiously optimistic view of this company. T2 had snagged its FDA approval back in 2014 for its instrument, but was, and still is, wallowing in the danger zone as it works to commercialize its T2Dx diagnostic device. It's hard to believe that T2, which currently (08/25/2022) trades for ~$0.13 went public in 08/2014 at ~$11.00 and subsequently traded >$20.00. Cheap does not a bargain make. T2's current down and nearly out share price reflects some very real problems that are dogging this company. Its rapid diagnostic products are quite attractive from any patient's point of view. The problem is that T2 has yet to figure out how to market them in commercially sufficient quantities to meet its expenses, much less earn a profit. T2's long-fought efforts for commercial viability have decimated the company's shares. It is struggling to maintain its NASDAQ listing. It currently anticipates a reverse stock split of somewhere between 1-for-10 and 1-for-50. If it would elect the 1 for 50 ratio, a shareholder who currently owns 50 shares trading at $0.13 would instead own 1 share worth $6.50; if it elects the 1 for 10 ratio, then shareholder would own 5 shares worth $1.30, still aggregating $6.50. T2 has an outstanding debt financing, originally for $40 million, with CRG. This financing has long been a concern of mine as I discuss at length in "T2: A Catch With A Catch". This concern is only exacerbated by T2's ongoing losses. The CRG loan is secured by a lien on substantially all of T2's assets, including its intellectual property. The loan requires T2 to maintain a minimum cash balance of $5 million along with other covenants. It is prepayable. In its latest 10-K, T2 advises: ...[It] intend[s] to continue to evaluate options to refinance the Term Loan Agreement, which becomes due on December 30, 2023. There can be no assurances that we will be able to refinance on terms favorable or at all. The amounts involved in any such transactions, individually or in the aggregate, may be material. Because the loan and its covenants are so important, T2 advised during the Call that it was then in compliance with all its loan covenants. As I recall from past review, this is a common bit of assurance that T2 has so far been able to provide during its quarterly earnings calls. T2 has a bevy of highly attractive products which have not proven financially viable. The issue with T2 that is especially frustrating relates to the extreme appeal of its products from a patient's point of view. Its current products are shown on its Q2 2022 presentation slide below: seekingalpha.com T2's rapid results are a godsend for patients who need to get a health screening, but who can ill afford long delays that are prevalent in the industry.

Shareholder Returns

TTOOUS BiotechsUS Market
7D-8.2%1.2%1.9%
1Y-88.5%-19.3%-18.8%

Return vs Industry: TTOO underperformed the US Biotechs industry which returned -20.8% over the past year.

Return vs Market: TTOO underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is TTOO's price volatile compared to industry and market?
TTOO volatility
TTOO Average Weekly Movement17.2%
Biotechs Industry Average Movement11.2%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: TTOO is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: TTOO's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2006182John Sperzelhttps://www.t2biosystems.com

T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States and internationally. Its technology enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine. The company also offers T2Dx Instrument, a bench-top instrument that runs various diagnostic tests from patient samples; T2Candida, a direct-from-blood test that identifies blood stream infections that causes sepsis and candidemia; T2Bacteria, a direct-from-blood test, which detects bacterial pathogens associated with sepsis; T2Resistance to identify carbapenem resistance genes; and T2SARS-CoV-2 panel to detect SARS-CoV-2 virus.

T2 Biosystems, Inc. Fundamentals Summary

How do T2 Biosystems's earnings and revenue compare to its market cap?
TTOO fundamental statistics
Market CapUS$34.94m
Earnings (TTM)-US$60.63m
Revenue (TTM)US$27.55m

1.3x

P/S Ratio

-0.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TTOO income statement (TTM)
RevenueUS$27.55m
Cost of RevenueUS$43.17m
Gross Profit-US$15.62m
Other ExpensesUS$45.02m
Earnings-US$60.63m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.17
Gross Margin-56.68%
Net Profit Margin-220.07%
Debt/Equity Ratio-134.3%

How did TTOO perform over the long term?

See historical performance and comparison