jurgenfr
T2 Biosystems (NASDAQ:TTOO) stock plunged 40% in after-hours trading Thursday after the company released its preliminary Q3 financial results and conducted a 1-for-100 reverse stock split.
After market close, T2 said that Q3 revenue dropped 60% year-over-year to $1.5M, due largely to a $1M reduction in revenue from BARDA. It added that revenue from its sepsis test panel product fell 31% to $1.1M from last year’s quarter, due in part to a $380K backorder.
T2 said that as of Sept. 30, the company had $24.3M in cash and equivalents. It also raised $21.9M in net proceeds from at-the-market, or ATM, sales in Q3 and was able to convert $10M in term-loan debt with CRG Serving LLC to equity.
Looking forward, T2 expects to report Q4 sepsis and related product revenue of $2.4M. Full year sepsis and related product revenue is expected to be $7.5M, down 10% from 2022, due in part to the backorder.
T2 Biosystems CEO John Sperzel said in a statement that the company was taking “aggressive measures” to address the sepsis backorder situation.
T2 plans to release its full Q3 earnings report in November.
The biotech company also announced Thursday that it had submitted an application with the FDA to include the pathogen A. baumannii in its T2Bacteria Panel.
T2’s split-adjusted shares will begin trading on Friday.
