T2 Biosystems (TTOO) Stock Price Falls 9.02%, Extending Losses

The T2 Biosystems Inc (NASDAQ: TTOO) stock price fell 9.02%, extending Friday’s massive 52.87% loss as investors reacted negatively to the company’s latest earnings results despite the 1-for-100 reverse stock split that came into effect on Friday.

While the company’s nominal stock price surged higher on the reverse stock split, the actual stock price declined due to the firm’s disappointing earnings results. The company revealed that it expects to generate revenues worth $1.5 million in its fiscal this quarter, marking a 60% decline year-on-year. 

The company attributed the decline in its revenues to a $1 million reduction in revenues generated from the Biomedical Advanced Research and Development Authority (BARDA). The company also expects to generate $7.5 million in full-year revenues, marking a 10% decline compared to last year. 

T2 Biosystems also generated revenues worth $1.1 million from its sepsis test panel, marking a 31% decline compared to last year. The company noted that it had a backorder worth $380,000, which could have filled the revenue gap compared to last year. 

The backorder is not a good sign for T2 Biosystems since it indicates that the company cannot fulfil customer orders on time despite working hard to generate sales of its test panels. The company has had many negative releases, but there is still some positive news. 

This week, T2 Biosystems received positive news as the Food and Drug Administration (FDA) granted a 510(k) clearance for the company's T2Biothreat Panel. Additionally, the FDA accepted the company's 510(k) submission to incorporate the detection of the Acinetobacter baumannii pathogen into the FDA-cleared T2Bacteria Panel.

These developments hold significant promise for T2 Biosystems as they expand the capabilities of their T2Dx Instrument, rendering it an even more valuable diagnostic tool.

The inclusion of the Acinetobacter baumannii pathogen detection is a particularly noteworthy advancement. This pathogen is frequently encountered in hospitals, posing a heightened risk to immune-compromised patients.

The Acinetobacter baumannii pathogen can cause various infections, including those affecting the blood, urinary tract, and respiratory system, such as pneumonia. Additionally, it can lead to wound infections in various parts of the body.

T2 Biosystems (TTOO) stock price. 

T2 Biosystems (TTOO) stock price was trading down 9.02% at $7.46, adding to Friday’s 52.87% decline.