T2 Biosystems(US:TTOO)2023-03-13 22:46Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $5.5 million, a decrease of 21% compared to the prior-year period [29] - Product revenue was $2.2 million, a decrease of 45% compared to the prior-year period, driven by a 89% decline in COVID-19 test sales [29] - Research contribution revenues were $3.3 million, an increase of 10% compared to the prior-year period [30] - Net loss for Q4 2022 was $10.4 million, or $1.41 per share, compared to a net loss of $12.1 million, or $3.65 per share for the prior-year period [30] - Cash equivalents and restricted cash were $11.9 million as of December 31, 2022 [31] Business Line Data and Key Metrics Changes - Achieved record full-year Sepsis and related product revenue of $8.4 million, representing growth of 17% compared to 2021 [13] - Record fourth quarter U.S. Sepsis test revenue was noted, with a total of 51 T2Dx instruments sold in 2022 [13][14] - The installed base of T2Dx instruments was 181 at the end of 2022, including 106 in the U.S. and 75 internationally [13] Market Data and Key Metrics Changes - Sepsis is the number one cause of hospitalization in the U.S., costing approximately $62 billion annually and claiming around 270,000 lives [6] - Approximately 476,000 Americans may get Lyme disease each year, indicating a significant market opportunity for the T2Lyme Panel [9] Company Strategy and Development Direction - The company is focused on three corporate priorities: accelerating sales, enhancing operations, and advancing the product pipeline [10] - Plans to increase the adoption of Sepsis test panels and expand the installed base of T2Dx instruments while solidifying commercial plans for the T2Lyme Panel [10][15] - The company aims to drive utilization in small to midsize hospitals where Sepsis management protocols can be updated more quickly [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving total 2023 Sepsis and related product revenue of $11 million to $13 million, representing growth of 31% to 55% compared to 2022 [16] - The company is addressing a raw material issue that has limited manufacturing capacity but expects to resolve backorders by the end of March [18][46] - Management remains optimistic about the BARDA contract and anticipates negotiating for further funding [35][48] Other Important Information - The company raised $12 million in gross proceeds in early 2023 to strengthen its balance sheet [20] - The T2Lyme Panel is expected to be commercialized in the second half of 2023, with discussions ongoing with potential partners [40] Q&A Session Summary Question: Why is there no guidance for research revenue? - Management indicated that the timing of funding from BARDA is uncertain, which is why they are not providing guidance for research revenue in 2023 [34][35] Question: What is the size of the commercial team? - The company has divided its geography into 20 sales territories, with 12 currently filled, focusing on existing customers to lower acquisition costs [36][37] Question: When will T2Lyme be commercialized? - The company plans to start marketing the T2Lyme Panel as a laboratory developed test during 2023, with potential commercialization in the second half of the year [40] Question: What are the expected gross margins on consumables? - Management expects gross margins in the 70% to 80% range for consumables, with operational efficiencies reducing overhead impact [41][42] Question: What happens if the no-cost extension for BARDA is denied? - Management believes it is unlikely that BARDA would deny the extension request, as previous extensions have been granted successfully [48]