T2 Biosystems sees Q4 revenue above prior forecast range of $1.1M to $1.3M
Q4 revenue consensus $1.16M. The company closed 7 contracts with new customers in the fourth quarter including 3 new contracts for the T2Bacteria Research Use Only Panel in the United States. There are an estimated 45,000 high risk patients associated with the closed contracts, exceeding the fourth quarter guidance of 30,000 high risk patients. Total revenue in the fourth quarter is expected to exceed the previously guided range of $1.1 to $1.3 million. The strength in the quarter is due to an increase in product revenue driven by demand for the T2Dx Instrument and the T2Candida Panel. CEO John McDonough states: "Our sales pipeline is building and sales cycles are accelerating, we believe primarily due to the anticipated FDA clearance of the T2Bacteria Panel, and the market need addressed by the product and the excellent clinical performance demonstrated in the pivotal tria... We are pleased with the growth in the customer base in Q4 and in particular, the growth in product revenue, consisting of the sales of the T2Dx Instrument and the T2Candida Panel, which were strong in the quarter. This growth in product revenue is indicative of an increase in the testing of patients with T2Candida and an increase in demand for our rapid diagnostic solution both within and outside of the United States."