T2 Biosystems, Inc.

Third-quarter 2024 revenue was $2.0 million, all from sepsis product sales, up 34% from the prior-year period. Sepsis test sales increased 34%, including a 173% increase in US T2Bacteria Panel sales; international instrument sales increased 78%, and the company executed 11 T2Dx instrument contracts in the quarter. Cost of product revenues was $4.1 million, up 4% year over year; R&D was $2.7 million, flat year over year; and SG&A was $5.4 million, down 10% year over year. Net loss was $10.1 million, or $0.57 per share, versus a $15.4 million loss, or $3.45 per share, in Q3 2023. Cash and cash equivalents were $2.1 million at September 30, 2024, and the company raised $4.3 million net via the ATM in the quarter and $3.2 million since September 30. For Q4 2024, management guided to total sepsis and product revenue of $2.5 million to $3.5 million, excluding potential T2Biothreat or T2Lyme sales.

John Sperzel framed the quarter around sepsis diagnostics as a major unmet need and argued that blood-culture dependence creates a structural opening for T2’s direct-from-blood tests. He emphasized the strategic significance of the Cardinal Health exclusive distribution deal, saying it should expand access to more than 6,000 US hospitals and create a faster path to profitability. He also highlighted pipeline catalysts, including T2Resistance, T2Lyme, expanded T2Candida, and pediatric T2Bacteria, and sounded upbeat about 2025 and beyond.

John Sprague highlighted the financial results: $2.0 million of Q3 revenue, $4.1 million of cost of product revenues, $2.7 million of R&D, $5.4 million of SG&A, and a net loss of $10.1 million, or $0.57 per share. He noted cash and cash equivalents of $2.1 million at quarter-end and said the company raised $4.3 million net through the ATM in Q3 and another $3.2 million since September 30. He also pointed out that the company received a Nasdaq notice on November 7 about market value falling below listing requirements and said T2 has appealed and expects to submit a compliance plan.

Analysts focused mainly on the Cardinal Health partnership and whether it would start contributing in Q1 2025. Management said the deal has already begun with marketing activity, could affect 2024 modestly, and is expected to have a significant impact in 2025 by expanding both instrument and consumable sales. On the Lyme LDT, management said the plan is to launch in the latter half of Q2 2025, ahead of the Lyme season.