NEW YORK – Infectious disease diagnostics firm T2 Biosystems said on Wednesday that its board of directors has approved a reverse stock split of its common stock at a ratio of one post-split share for every 50 pre-split shares.
Each 50 shares of T2 Bio's common stock outstanding will be automatically combined into one share of common stock, the firm said in a statement. The stock split is intended to bring T2 Bio into compliance with the Nasdaq's minimum bid price requirement. T2 Bio received a letter from the Nasdaq in May saying the firm didn't meet the $1.00 minimum bid price requirement and could have its shares delisted. In June, the company was granted an extension until Nov. 1 to regain compliance with the requirement.
The split is effective Oct. 12, and the firm's common stock is expected to begin trading on a split-adjusted basis when the market opens on Oct. 13 under the existing ticker TTOO, the company added.
Also on Wednesday, Lexington, Massachusetts-based T2 Bio announced its preliminary third quarter earnings. Estimated total revenue for the quarter is approximately $3.7 million, down 50 percent from Q3 2021, and estimated product revenue is about $2.6 million, down 40 percent from the year-ago quarter. The revenue decreases were driven by lower sales of COVID-19 tests and reduced revenue from the US Department of Health and Human Services' Biomedical Advanced Research and Development Authority but were partially offset by increased sepsis test sales. Non-COVID-19 product revenue was about $2.3 million.
The firm executed contracts for 11 T2Dx instruments during the quarter — three in the US and eight outside the US. Cash, cash equivalents, marketable securities, and restricted cash came to $21.5 million as of Sept. 30.
T2 Bio also updated its full-year 2022 guidance, expecting total revenue of $22.0 million to $23.0 million and the closure of 50 to 55 T2Dx instrument contracts.