NEW YORK (360Dx) – T2 Biosystems reported after the close of the market on Thursday that its second quarter revenues skyrocketed fourfold year over year, beating the consensus Wall Street estimate.
For the three months ended June 30, 2018, the company posted revenues of $3.9 million, compared to $956,000 in the same period the year before. The analysts' average estimate was $2.9 million.
Product revenue jumped 63 percent to $1.2 million from $735,000 in Q2 2017, and research revenues increased sharply to $2.7 million from $221,000 in Q2 2017, which the firm attributed to a one-time $1.3 million milestone payment from its partnership with Canon US Life Sciences.
During the recently completed quarter, the company placed nine new T2Dx instruments and secured 10 new hospital contracts. In addition, it commercially launched its T2Bacteria Panel, which received 510(k) clearance from the Food and Drug Administration in June.
In a conference call with analysts after the release of earnings, T2 Bio CEO John McDonough said that as of June 30th, the firm has "73 instruments placed or contracted to be placed, covering 158 hospitals in the US or worldwide."
McDonough also estimated that each instrument may generate around $300,000 in recurring revenues once hospitals ramp up testing of patients with T2Bacteria and T2Candida, which "could take 12 to 18 months."
The firm reported a net loss of $12.3 million, or $0.32 per share, for Q2 2018 compared to a net loss of $15.5 million, or $.50 per share, for Q2 2017. It matched the consensus Wall Street estimate for the net loss per share.
T2 Bio's R&D costs in Q2 2018 dropped 48 percent to $3.7 million from $7.1 million, while its SG&A spending increased 22 percent to $7.1 million from $5.8 million.
In June, the company closed a public offering of its common stock, raising $52.6 million in gross proceeds.
T2 Bio finished the quarter with $70.7 million in cash and cash equivalents.
For full-year 2018, T2 Bio reiterated its revenue guidance – given after the FDA cleared the T2Bacteria Panel – of a range of $10.5 million to $12.0 million. The company had earlier guided to a range of $10 million to $12 million.
Product revenues are anticipated to be between $5 million and $5.9 million, compared to a previous range of $4.5 to $5.9 million, and research revenues are expected to be in the range of $5.5 million to $6.1 million.
For the second half of 2018, T2 Bio expects to place between 20 and 25 T2Dx instruments, with about 70 percent of the placements in the US.