NEW YORK – T2 Biosystems reported after the close of the market on Thursday that its first quarter revenues grew 3 percent year over year, though product revenues were down 19 percent.
Separately, the Lexington, Massachusetts-based firm said it has received a letter from the Nasdaq warning it is not in compliance with a listing requirement.
For the three months ended March 31, T2 Bio posted $7.2 million in total revenues compared to $7.0 million in Q1 2021 and beat the consensus Wall Street estimate of $6.7 million.
Product revenues slid to $3.8 million from $4.7 million a year ago, while research contribution revenues rose 48 percent to $3.4 million from $2.3 million.
"Our first quarter results reflect continued progress across our three corporate priorities: accelerating our sales, enhancing our operations, and advancing our pipeline," T2 Bio Chairman and CEO John Sperzel said in a statement. "We are very pleased with the strong T2Dx instrument placements in the US and successful advances in new product development and US clinical trials under the [Biomedical Advanced Research and Development Authority] contract."
Last month, the company said it would exercise a $4.4 million contract option with BARDA.
"We are confident that near-term catalysts can create value and drive long-term growth, including significant growth in T2Dx instrument placements and sepsis test revenues compared to 2021, improving product gross margins and completing the US clinical trials for the T2Biothreat Panel and T2Resistance Panel," Sperzel added.
T2 Bio had a net loss of $16.5 million, or $.10 per share, in the recently completed quarter compared to a net loss of $10.7 million, or $.07 per share, a year ago. It missed the consensus Wall Street estimate of a loss of $.07 per share.
Its R&D spending rose 43 percent to $6.7 million in Q1 2022 from $4.7 million a year ago, while its SG&A costs grew 48 percent to $9.2 million from $6.2 million.
The company exited Q1 with $9.4 million in cash and cash equivalents and $10.0 million in marketable securities.
For full-year 2022, it maintained a prior guidance of between $28.0 million and $31.0 million in revenues. Product revenues are expected to be $16.0 to $17.0 million, and research contribution revenue is anticipated to be $12.0 to $14.0 million.
T2 Bio expects to close 60 to 70 T2Dx instrument contracts during the year, while COVID-19-related revenues are expected to decrease from $9.5 million to $3.5 million, T2 Bio said.
The company also disclosed that it received a letter from the Nasdaq on Thursday saying the firm does not meet a requirement of at least a $1.00 minimum bid price to continue listing on the exchange and could have its shares delisted. T2 Bio has filed an appeal and hearing request with the Nasdaq. The delisting has been stayed as a result, and a hearing date has been scheduled for June 2.