• Total Revenue: $2 million in Q3 2024, a 35% increase compared to the prior year period.
• Sepsis Test Panel Revenue: $1.6 million, a 42% increase compared to the prior year period.
• T2Bacteria Panel Revenue: Greater than 200% increase in the United States.
• T2Dx Instruments Contracts: 11 contracts executed in Q3, including 1 in the US and 10 internationally.
• Revenue Guidance for Q4 2024: $2.5 million to $3.5 million, representing growth of 49% to 109% compared to Q4 2023.
• Full Year 2024 Revenue Guidance: $8.5 million to $9.5 million, growth of 18% to 32%.

• Warning! GuruFocus has detected 5 Warning Signs with TTOO.

Release Date: October 10, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• T2 Biosystems Inc (NASDAQ:TTOO) has entered into a multiyear exclusive US agreement with Cardinal Health, which is expected to accelerate revenue growth and expand access to over 6,000 US hospitals.
• The company has received FDA clearance to market the T2Candida panel for pediatric patients, significantly expanding its total addressable market.
• T2 Biosystems Inc (NASDAQ:TTOO) has successfully defended a key patent in its direct-from-blood detection method in the European Union, maintaining its competitive advantage.
• The collaboration with pRxcision Inc aims to combine AI-driven precision with T2 Biosystems' rapid diagnostics, potentially enhancing antibiotic stewardship and reducing antimicrobial resistance.
• The company reported a 35% increase in total revenue for the third quarter of 2024 compared to the prior year, driven by increased sepsis test and instrument revenue.

Negative Points

• The company's revenue guidance for 2024 does not include potential sales from the T2Biothreat panel or the T2Lyme Panel, indicating uncertainty in these areas.
• There is no immediate guidance on when the collaboration with pRxcision Inc will reflect in top-line revenue, suggesting potential delays in realizing financial benefits.
• T2 Biosystems Inc (NASDAQ:TTOO) faces competition from other diagnostic companies that claim faster detection times, although these require a positive blood culture first.
• The company is still in the process of submitting the T2Resistance Panel for FDA approval, which introduces regulatory risk and potential delays.
• Despite the partnership with Cardinal Health, T2 Biosystems Inc (NASDAQ:TTOO) still requires its own sales force to support the partnership, which could increase operational costs.

Q & A Highlights

Q: Can you provide more details on the distribution agreement with Cardinal Health and its expected impact on revenue? A: John Sperzel, Chairman and CEO, explained that Cardinal Health will be selling both the T2Dx instrument and sepsis test panels. While the agreement was just announced, some positive impact is expected in the fourth quarter of 2024, with full operational speed anticipated by early 2025.

Q: Will T2 Biosystems maintain its own sales force alongside the Cardinal Health partnership? A: Yes, T2 Biosystems will maintain a small team of sales specialists and medical affairs personnel to support existing customers and drive growth in partnership with Cardinal Health, as per John Sperzel.

Q: What is the expected timeline for revenue impact from the collaboration with pRxcision? A: John Sperzel stated that the collaboration with pRxcision will start immediately, but no specific guidance on revenue impact has been provided yet. The AI-driven decision support system is expected to enhance the use of T2's diagnostic information.

Q: How does the pRxcision platform integrate with T2 Biosystems' products? A: The pRxcision platform uses data from T2's diagnostics to provide precision in antibiotic treatment, leveraging pharmacokinetic models and real-time patient data to optimize care, according to John Sperzel.

Q: What are the strategic benefits of the Cardinal Health partnership for T2 Biosystems? A: John Sperzel highlighted that the partnership aims to accelerate revenue growth and profitability by expanding access to over 6,000 US hospitals, leveraging Cardinal Health's extensive commercial and distribution infrastructure.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.