NEW YORK – T2 Biosystems on Tuesday announced that its Q1 2023 revenues fell 71 percent compared to the prior-year quarter and that it has initiated a restructuring plan resulting in the layoffs of nearly 30 percent of its workforce.
Total revenues for the first quarter of 2023 fell to $2.1 million from $7.2 million in Q1 2022. The decline was driven by a decrease in COVID-19 test sales and reduced activities with the US Department of Health and Human Services' Biomedical Advanced Research and Development Authority, the Lexington, Massachusetts-based company said in a statement.
Product revenue dropped 55 percent to $1.7 million from $3.8 million after COVID-19 test sales fell 98 percent, although the decline was partially offset by increased sepsis test sales.
Net loss for the quarter was $18.0 million, or $1.32 per share, compared to a net loss of $16.5 million, or $4.86 per share, in Q1 2022. T2 used approximately 13.6 million shares to calculate per-share loss in the recently completed quarter compared to about 3.4 million shares in the year-ago period.
The firm ended the quarter with $10.1 million in cash and cash equivalents.
The company also reiterated its full-year 2023 guidance, expecting total sepsis and related product revenue between $11.0 million and $13.0 million.
In addition to the restructuring program, which is intended to reduce annual operating costs and preserve capital, T2 Bio is also working with an advisory firm to explore all potential strategic alternatives, including an acquisition, merger, reverse merger, other business combination, sale of assets, or licensing.
In a separate announcement on Tuesday, the company said that it has submitted its T2Biothreat Panel to the US Food and Drug Administration for 510(k) clearance. The direct-from-blood test runs on the firm's T2Dx instrument and simultaneously detects six biothreat pathogens within four hours: Bacillus anthracis, Francisella tularensis, Burkholderia mallei, Burkholderia pseudomallei, Yersinia pestis, and Rickettsia prowazekii.
In early Tuesday trading on the Nasdaq, shares of T2 were down 28 percent to $.20.