The T2 Biosystems Inc (NASDAQ: TTOO) stock price dropped 10.6% a few days after releasing its financial results for the second quarter ended 30 June 2023. The biotech company generated revenues worth $2.0 million during the quarter, marking a 67% decline from the Q2 2022 figure.
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The company attributed its lower revenues to a $3.4 million reduction in BARDA research contribution revenues. The firm’s sepsis test panel generated $1.3 million in revenues, representing a 7% increase, while
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T2 Biosystems executed contracts for 11 T2Dx Instruments during the second quarter, including 4 in the U.S. and seven internationally. The company secured a multi-year contract with a European distributor for 7 T2Dx Instruments and sepsis test panels for Poland – including T2Bacteria® Panel, T2Candida® Panel, and T2Resistance® Panel.
The company strengthened its balance sheet by converting $10.0 million, or approximately 20%, of term loan debt with CRG Servicing LLC (“CRG”) in exchange for shares of T2 Biosystems equity.
T2 Biosystems also reported two days ago that it had regained compliance with the Nasdaq listing rules by maintaining a market value of listed securities (MVLS) of $25 million. However, the company must still comply with the Listing Rule 5550(a)(2), the Bid Price Rule, by November 20, 2023.
The biotech company is in financial trouble as it continues to burn through investors' cash while generating minimal profits despite having relatively promising products on the market. Retail investor interest in the company is also relatively high, and we could see it turn into a meme stock.
John Sperzel, Chairman and CEO of T2 Biosystems, stated: “Our second quarter results were highlighted by record quarterly sepsis test panel orders and the second largest sepsis-driven instrument order in company history, demonstrating increasing demand for our life-saving direct-from-whole blood sepsis pathogen detection products,”
“Progressing each of our corporate priorities, the implementation of our strategic restructuring program, which has led to a reduction in operating costs and the strengthening of the balance sheet, positions T2 Biosystems to continue the exploration of strategic alternatives and execute on our product development and growth initiatives.”
T2 Biosystems (TTOO) stock price.
The T2 Biosystems stock price dropped 10.58% to trade at $0.2900, falling from Thursday’s closing price of $0.3250.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.