Why T2 Biosystems (TTOO) Shares Are Falling Today - T2 Biosystems (NASDAQ:TTOO)

T2 Biosystems Inc TTOO expects Q3 sales of approximately $3.7 million, including product revenue of around $2.6 million, representing a Y/Y decrease of 50% and 40%, respectively, below the consensus of $7.2 million.
The fall is driven by lower sales of COVID-19 tests and reduced BARDA revenue offset by increased sepsis test sales.
The company sees sepsis and related revenue (non-COVID product revenue) of approximately $2.3 million, representing a record number for a single quarter, up 24% Y/Y.
It executed contracts for 11 T2Dx Instruments during Q3, including 3 in the U.S. and eight outside the U.S., compared to 8 total instruments in the prior year.
T2 Biosystems received Option 3 of the contract with BARDA, valued at $3.7 million.
The funding will advance the U.S. clinical trials for the T2Resistance Panel and T2Biothreat Panel and FDA submissions expected in Q4 of 2022 and early 2023, respectively.
Cash, cash equivalents, marketable securities, and restricted cash totaled $21.5 million as of September 30, 2022.
The company expects FY22 sales of $22-$23 million, down from the previous guidance of $28-$31 million and the consensus of $28.5 million.
It expects to close 50 to 55 T2Dx Instrument contracts in 2022, versus 60 - 70 expected earlier.
T2 Biosystems also approved a reverse stock split of 1 for every 50 shares. The reverse stock split will become effective today.
Price Action: TTOO shares are down 32.10% at $0.05 on the last check Wednesday.

Amid Plunging COVID-19 Test Sales T2 Biosystems Cuts Annual Guidance, Shares Fall