TTOO - Earnings call transcript Q4 2017

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Operator

Greetings and welcome to the T2 Biosystems' 2017 fourth quarter and year-end financial results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Chris Brinzey. you. Thank

begin. may You

Chris Brinzey

and TX everyone. and Biosystems call. results operator us year-end for for conference the XXXX good you, Thanks evening, joining financial Thank fourth quarter

question-and-answer for discuss President team are CEO, will The with Chief John period. Officer, call and On Scientific XX, Financial and the some Chief open followed Sprague; call ended December the to operational the by prepared executive highlights John the McDonough; Officer, period XXXX Lowery. a results remarks and Tom

I'd include begin, everyone future, comments to we products. and remind Before like include new that marketing results Biosystems' made to will plans today forward-looking TX and for financial operating by statements management and statements. developing Those related

are results in the risks cause Annual comments. XX-K by law. statements, XXXX. subject that Form may statements or to statements by differ for and or and to uncertainties uncertainties to described required as TX SEC CEO, to assumptions Forward-looking to estimates on The and except are and over revise that, actual opening based any John from filed the risks those and implied Biosystems' those materially including expressed on today as I'd update call obligation Report no on his turn With like publicly with John? President undertakes forward-looking company XX, the McDonough, of March

John McDonough

our welcome you, call. quarter and fourth Thank ended and year XX, Good to evening, earnings Chris. December XXXX everyone

our accounting TX John period and equity finance fit want the a building as M&A, evolve of for commercial into I have his welcome strong TX experience results, Sprague, along and new be proven debt the our this to leading perfect pleased into company. financing John's capabilities multiproduct we we Officer. becoming growth team getting to during will with Chief our background Before and John teams join think in Financial We're

John Sprague

the about excited I'm joining TX John. team. Thanks,

John McDonough

Thanks aboard. welcome and

for Let call. agenda me begin with today's a brief

provide a our business high remarks level I'll the our and review financial the we've results for John financial and in begin our quarter who highlight. business for quarter recent summary detail our of past fourth review key the then in my over discuss to call XXXX. our drivers financial calls, first quarter XXXX, done on of turn results and with prepared As an guidance the in update end will year I'll

high XX%. product the the almost new increase grew revenue call seeing which revenue I'll in TXDx not with review, impressive FDA XXX%. Starting what in the instrument. being our questions. strong a in sales shipped of received quarter until revenue the John's driven to of of X.X being We panel closing revenue our increase Following the the customer the orders included of end instrument progress were believe million quarter sales an some revenue we due TXCandida believe the fourth of sales in instrument revenue and the TXBacteria of from TXDx an build pleased with and quarter. and set an QX million. primarily the third sales clearance exceeded as by quarter XXXX quarter, said, we're will fourth made before the the fourth up That high anticipated pipeline, of quarter be year is that end sales we we including XX% with were building delivered, during number was in stage fourth quarter, exceeded from the financial the reported The almost and proposals QX. publications results, remarks product XXXX in proposals were the open the of year-over-year Overall, to for total by Product new by The we in by XX% share we and compares is guidance In to QX we guidance customers. revenue delivered of the driven third for growth potential in strength fourth to growth fourth proposals to proposals of data. an the total in TX. exciting $X.X X of the and for total XX of delivered XX customers. the acceptance proposals growing on customer panel a XX the pipeline stories The platform, demonstrated TXDx success of of

TXCandida progress patients including at it measure risk of important past represent the if high the continue was time our We metrics on risk and facilities calls, of number were contract. as infections. metric be of present to We number under growth all consider at the with patients symptoms tested be that the to patients TXBacteria in highlighted tested customer could using that this patients high with

additional quarter, the hospitals fourth the high number on contract result TXBacteria, two we for a EU. at in the increased XX,XXX, of the and high of use estimated products risk had the we TXBacteria by contract seven approximately earnings XX,XXX hospital call. ahead in research RUO During risk new high are The contracts last target set under or contracts, closing United States only one of risk patients XX,XXX patients the patient including our the use of

cleared. Additionally, in quarter once customers with amended fourth existing two to contract include the were FDA TXBacteria

with TXBacteria existing we XX new the of TXCandida are XX, four As customers customers, RUO and placements six December of RUO customers. the have of TXBacteria

of XXXX with community is placements teaching almost and bed academic hospital that operates an One the hospitals. six

hospital financial market acute and XXX receiving time, placed on expected to facility than operates and Another provide community placement after a of provide panel. guidance almost will the number also we and hospitals that care for the FDA an seven new guidance XXXX this TXBacteria to will XXX region. more It year. accounts intent that instruments our the clearance of is sites metric closed locations bed throughout provide at academic total expected be on hospital is with At to number the be

estimate to is instrument or running capable per tests be instruments TXBacteria placed, and United covering of hospitals we placed Europe. XX, each contracted have of XXXX, TXCandida XXX the and/or over in As December that We X,XXX year. XX States

estimated to with both an high instrument. TXCandida TXDx on Additionally, contracts placements that XX, December run the which access tested patients XXX,XXX as instrument of TXBacteria and be provide risk those could and

an status on of TXBacteria to the on Moving update the panel.

call submission. a but by you XXX(k) as most September, to on to As us would the had clearance on we clearance a be with end last hope submitted of FDA our know, have timeline experienced months the FDA to as of different TXBacteria than of received on timeline market to a FDA process appears bit This path application We panel. Candida the QX. the the to a we approval XXXX, of typical we nine have early decision appear in FDA as within what the more the six from requesting the

Our FDA and time patients, and panel the be the benefit productive continue that trial this the of clearance based to discussions and on the for we cooperative clinical with a strong TXBacteria from can typical FDA frame. be believe within data achieved

the translates represents is with and the rate panel AB infected a about We demonstrate which do of to This impact shown the We rate statistic X.X% be with sepsis Europe performance an offered the other adoption in and panel study. to have TXBacteria of cases, AB from TXBacteria or our patients culture part an of studies future and factor combination of AB expect AB for consistent the that the no X% panel in healthcare in infection CE-Mark. incident remain anticipate there population. [ph] we the patients infections. estimated the part due about accepted United this to AB in of of the higher AB is in incidence the CE-marked part of a species removed States. X.X% US because all TXBacteria were pivotal blood associated As review, that representing commercial have Europe, tested. not a countries to by the of in will to factors has US

was infection. which with a patients is on As Of detected commercial with Most favorably species products We're of the only across XX blood culture of the overall identification. XX.X%. for time confirmed a TXBacteria and to of hours TXBacteria compares diagnostic blood TXBacteria the as about in filing panel any prospective patients panel contract includes XX.X enthusiastic those, draw TXBacteria blood institutions the United drawn the the sensitivity detected positive of study panel. identified XX now sensitivity as at different that compared evidenced culture XX% an therefore reported pivotal XX.X% that concurrently XX% overall XXXX sensitivity culture run and the the result the the States the infections, by panel of importantly, use RUO to of The TXBacteria This XXX over patients. the hospitals while average dependent compelling culture. TXBacteria to XX the specificity interest to with demonstrates under blood blood reminder, based data to hours is X.X for the XX submission

we including hospitals, As others. market market lab clinicians, launch, the an study a XXX firm. completed for independent directors, we administrators study over research prepare with inputs hospital recently included and from commercial The

the of in of drive on suspected study. pricing per Sepsis little TXBacteria The the highlights and priority patients. XX% the performance adjusted pricing enabled because testing viewed some Lower TXBacteria the order hours most of in highly. to belief utilize This the is surveyed is cleared, important sepsis be both for XX% panel are platform testing within TXBacteria adoption hospital be we driven to the Here testing in of in being significantly from and by TXBacteria at or even would we survey. will significantly the significant de-escalated volume of TXBacteria time, XX range closer adapt they're and to the a compared is patients than of Lower while for treating each clinical to higher patients' the to times as institutions FDA expected will therapeutic the year. as clinical to potential therapy of adoption lives suspected the by that system in of rated first TXCandida. health will approach that positively TXBacteria platform. adoption TXCandida faster that We the TXBacteria potentially mortality as patients together TXDx the of on because blood use to be of the the likely addition supports the from TXCandida patients patient perspective, XX% patients potential have the right FDA are the infection. of uptick tested therapy time hospitals the has more needs of compared data TXCandida a the healthcare although believe TXCandida, the combination for to however or $XXX rapidly. At TXCandida TXBacteria XX% TXDx addressed to and time test over see patients of our a TXBacteria to offers for by so was and sepsis greater for be and dollars allowing morbidity, impact bacteremia six volumes unmet panel draw a impact would TXBacteria. will hospitals test same that believed more they saving believe or the volumes. high targeted a enable or the once trials reduce of The millions

the turn some Tom? success Chief call Officer, discuss Tom our I'll recent Lowery, data over the and of Now, Scientific customer to to stories.

Tom Lowery

John. Thanks,

culture solution. Association conferences, posters hospitals the remains in and to TXSepsis highlighted data the broaden Lake benefits the value attributes, presentation blood on XX% sepsis exceeded results clinical of of the infections the Conference presentation study of awareness the for for tested of by the use success and the solution may which enhance compared TXCandida ours the industry using panels. the of achieved key instrument stories the to As that the blood XXXX, we identified time, TXBacteria XX favorably results. of TXDx and cases. increasing launch any The which in customer Overall, of Molecular patient XX% we samples the Medicine and School XX identified recently, the of focus potential bacterial of TX we correctly November, presented only the TXBacteria panel prepare and the presented Most number for in be TXBacteria, at demonstrate by at utilizing the Pathology study Utah. highlighting culture in individual City, as Salt diagnostic [indiscernible] comparing the potential TXBacteria The the to

DIRECTX therapy. blood called faster consistent the confirm the to almost is Microbiology. culture blood culture. than published the published performance TXCandida the this study in able the presence an infections was of of confirmed of in panel with ongoing microbiologic Candida would in in STAMP studies and study, being TXBacteria University underscoring of TXBacteria the in Journal Infectious diagnostic twice TX the reported In Lead the diagnosis other modeling of panel panel receiving candidemia professor for confirmed with and was Additionally, important culture associate other medicine infections compared infections. invasive drugs. clinical blood This era author, of approach the detection called sensitively is Dr. stream results of patients that in in new the February, a detect and to TXCandida value a Cornelius Diseases nine In is of Clinical based treated infection to Division study, study the may patient many Diseases, J. DIRECTX using of an invasive Clinical In the a more of infection. the infections detecting which for STAMP blood cultures. molecular TXCandida, Journal was adjunct rapid can clearance of as study Clancy, Pittsburgh's TXCandida antifungal antifungal this detected methods concluded were for in demonstrates usher TXCandida that The an when Infectious event in candidemia as testing serve the

and yields the concluded effective administration the test the infection, therapy. requires antifungal often that tool that antifungals panel patients The can of study of because TXCandida with false reduce cells for results get culture the of can impede of infection. the blood use identifying an authors While can to negative blood reliably be which unnecessary that expensive growth culture

targets further which bonded of the CARB-X you, more plans in is the first over pharmaceutical to expanded believe telling for We're our announce impact it Dx to to in UK. has to diagnostic the of is is product development on panel. technology, based the blood a the grand. to care. and this TX foundation development initiative pathogens antibiotic ability we excited award the progress and new trials our that, TX patents of and by be The including CARB-X new the look also company's create their BARDA, clinical health resistance totals CARB-X threat of the you government With trust, market, XX protected development line our about CDC bring the is the award our that CARB-X this that portfolio instrument led and over The and mission we come In significant agency $X species a to innovation companies resistance human million. expand one to with in awarded that with turn resistance. honored test all to the pleased through help XX focus and antimicrobial validation bacterial about on antibiotics antibacterial the is detecting of back potential Lastly, been combat patient in by of today representing issued more synergies and products John. CARB-X I'll earlier growing the technology was US the for global forward of and The list. company. borne to welcome accelerate we're options charitable drive future, jointly of services to

John McDonough

our I'm preclinical Before Sprague spring. that commence are that on quarterly our turning efforts. this study a like the and diagnostic over a of call concluded to to our for review track TX performance, the FDA I'd report financial successfully to to update line clinical development complete our we provide happy panel brief trial John pipeline for on also

on and a by FDA product TXGrand initial Allergan clinical developed end The panel hopeful resistant expect track roll and also to plan next sometime submission this remains to a being to this the our the deliver diagnostic we partnership negative to XXXX to calendar with Allergan through of We have trial into year. year.

is the accuracy, progressing country that with around suffer times to John? superbug including orders, challenge culture of Existing With The going place suggests Control TXDx installed days detection XXXX a CDC let well. resolve the call to and CDC hospitals Centers diagnostic and effort is data XX exacerbates at in and of only the our panel turn use time panel over in while fight the review that, will and fourth an instrument average prolonged approximately for the regarding at believe taking contain who the CDC partnership the the superbug. the Disease detecting laboratory investigational to Candida detail. TXCandida Prevention me are four hours. the Our new which the of means quarter an from validation Candida and Instruments greater the has year use results the rapidly John full well. we that a will and TXCandida as work

John Sprague

range you, revenues were results. and year's revenues Fourth $X.X $X.X and increase panel over $X.X million, high of product XXX% sales, XX% the an quarter's of John. quarter over Revenues over year's last over fourth primarily last $XXX,XXX quarter quarter's a $XXX,XXX Thank increase XXXX last TXCandida increase million, of revenues and XX% and XX% increase guidance. Product over a financial million a last of TXDx of product in of XX% revenues, instrument $XXX,XXX quarter $XX.X quarter's fourth XX% last of quarter range the product guidance. fourth quarter low and than $XXX,XXX over XX% decrease $XXX,XXX. revenue, less excluding year's decrease of Costs were $XX.X expenses expenses XX% and revenues costs last expenses over of and costs last revenues of were million and to fourth million. a and and Research last were cost a million, $XXX,XXX $X.X year's quarter. expenses, compared were Costs

increase over the margin over last carrying of operating compared and last million, as loss received revenues, payments reducing of expenses revenues milestone TX of of panel year's million, are $XX.X over XX% were development our to expenses year's Operating last charge average a quarter to were Cost product and of $XX fourth and million, million a X% million. activities. TXDx cost XX% Full increase operating instruments loss outstanding incurred increase were adjusted Product last this less We year's revenues $X.X value last million were average a timing of $X.X quarter's due $X.X XXX% XX.X million. of $X.X sales million. Operating million million, in last year's spending million to a $XX.X a from compared $X.X XX% product compared operating XX.X increase and results. year million. and research $XX.X margins over year. last Weighted partners. to sales year's Research our primarily of $X.X million cost Revenues million million. were margin were million is revenue and fourth million last compared $XX.X increasing TXDx We decrease $X.X million outstanding TXCandida of this Weighted $XX.X commercial are a we were over a $XX.X XX.X quarter owned loss Instruments of quarter. year's last loss XX.X shares non-cash margin a loss XXXX quarter financial XX the margins to revenues year year shares million. excluding and last of were and

and XX.X Our XXXX. forward-looking uncertainty. operations. months of next at of end the cash March to we statements based X, cash estimates believe financing The have are for of outlook. as sources equivalents following reflect sufficient information XXXX XXXX subject and the on and were million We XX

the heading under available is statements. information forward-looking Additional

TXBacteria earlier, approval. we'll mentioned John upon XXXX guidance for year provide FDA As the

XXXX, revenue $X.X $XXX,XXX to and expect quarter total be revenue to we to million $XXX,XXX. to product first be million the and research be $X.X $X.X $XXX,XXX million of to to revenue For

in least new at that expect first risk high to at on XX,XXX six placements a quarter, least of Instruments to X close minimum provide new patients. access include We contracts which TXDx the

cost quarter also We operating of to million, product depreciation of including million first million. stock-based $XX.X revenue be expect compensation to expenses non-cash and $XX.X expenses XXXX including $X.X

in to we on TXBacteria million, clinical and operating and $X allows to and the as million The us product for revenue XX%. support we year range QX expenses and impact reduction continue of Tom reduction Going not the growth, earlier. be associated development in mentioned in our with of the our sales of expect brand approximately the of growth, revenue our will expenses including forward, with to trial $XX fund completed commercial fully a the pipeline, investment the in remainder focus work

of for Thank remarks. option Our exercises. outstanding weighted to you. million impacted shares John And stock average XX.X be back may closing by

John McDonough

our We driving what FDA interest quarter. course turn revenue In you and Thank the will work evening. in testing growth. continued market we focused the this will growth prospects our use of the increase many open are clearance at achieved significant will and and the of we believe lead thank TXBacteria for game of on adoption TX XXXX. our believe in platform being TXCandida our excited a We're revenue platform for drive US. substantial be and world. instrument you, today's That and John. market squarely to progress being XXXX of improving for reviewed prepared we progress clearance the instrument year. with questions. patients hospitals. participation the of tests the TXBacteria I'd today our operational in Thank course now remarks now which substantial of your will over for pleased the call for We're believe very milestones lives their over in of we through productive and like the the everyone product the the focus you commercial changing exciting this concludes team and drive hard of our Biosystems. to about run call of believe Operator, with which patients driving by a clinical last we adoption the placement mission number accelerate We on for and TX in fourth summary, Europe of Biosystems' Together, the products, the the on our their around for adoption of and includes in available in

Operator

WBB. from is Instructions] first [Operator question Steve Brozak Our from

Steve Brozak

of and was John order in was this congratulations the were dive the points study but to very in CID the of care about quickly the Can differentiating Fisher, more let that That's you Becton in you in the here questions you companies the differences what me right obviously and please. just or joining talked with company. in standard all for as the is care, of news describe standard one terms with of are to Dickinson exciting, care”. notes at disrupting care? comparing standard were in standard because Thermo then looking congratulations from got two and itself I've And like of listed why of good Well TX unique of that “standard itself care to follow up

John McDonough

take thanks much to very Lowery the one. let going Steve, Tom for that Dr. question. I'm to

Tom Lowery

Steve. Yes,

biggest is the has studies difference So The issues relies care, culture as of on CID of as study versus in it's a a culture sensitivity. were well variety clinical that great question. and all low blood in that evident standard here other

cleared, hasn't Second the can get to It infection a therapy, if results. is know your negative result get time false if also is with cleared. patient negative on even patients you long the that takes to

clinical with So in showing that and and much CID can sensitively. the all blood, really test, because on from forefront culture sensitivity diagnosed be has study patients came doesn't direct those the how these rely to it's our more faster higher

Steve Brozak

we've going power bottom adding CARB-X. model got of terms there guess the adding you're now this appreciation, business again line kind you we Is had. and in And your now was about And there that think of about to agreement talking terms in and Cidera I of and along can these the out in franchise to Allergan the remembering, of that collaborations. to collaboration the start also with

John McDonough

therapeutic an using We're we in of that mix. companies And being in great studies. That's development interest uptick do clinical TXBacteria trial our interest to will products question. that more with increase are and There clinical and antifungals. seeing in added are the from a antibiotics that the definitely level expect

so with of the And accelerates that number the clearance opportunities product. of

drives model. studies. an revenue, it drives will It our also part of It that think studies. being instruments I run but So hospitals certainly placed it important at drives those be

Steve Brozak

hop my And queue. last back I'll and the question in

You've have out. come got journals these two that

adjusting other You've are does you've now in that what hear obviously a research community in medical the are fungal these got for because how the to What starting where are a now situation of They administrators disease docs, are strength. to obviously clinicians it on saying this the you've systems general you what publications infectious side, from got all purposes and lot too? side? the the had hospital compare also with the the experience bacterial but are it testing saying from

Tom Lowery

I'll administrators. Sure. talk John I'll let clinicians about saying. and what they're the talk the about

that test now like most we like So asking what evidence had I we're hearing helps one half a clinical year test TXBacteria answer question with and use a TXCandida, studies a effectively. how it the utility will building year a each a and use they really ago of people are of how do I the as just of these come answers out, and

breadth many We're So ago that are really also Bacteria help these test and TX menu can from as of we John studies years help more in to rapidly hypothesis put call, proving of blood earlier. and them patients detect how the of the in on about patients. had the how mentioned out direct address enthusiasm, appropriate much the therapy hearing will treatment

John McDonough

that they to And couple understand of side, in that even Yeah. disease, administrator able for were would some be some Tom in studies, as these TXBacteria factors studies these play. infectious there the mentioned that advantages. and are of Steve, specific, are One same administrators the offers the matter while from TXCandida a

TXBacteria. of effect understanding is studies, these the even case, in are terms So there product, in if that an a and they're TXCandida or appreciation positive they TXBacteria, of

and and is TXBacteria number in The of much patients expanding a definitely other the the for proposals complete more hours offer addition thing solution the we're broader the that over a a to XX% complete on fast really appreciation of total. in are six number hospitals, us demonstrated sepsis as quarter potentially solution being that hospitals to seeing put therapy pipeline from and the in administrators that we fourth pushing of cycle long sepsis the sure it's in right of that enabling is sales for in targeted saw enables as more of

Operator

is from Donnelly Goldman from Sachs. Patrick question next Our

Patrick Donnelly

in the give timeline strategy, talked this your you've the With force about me where approval progressing, the of of FDA force the the So for you push past, commercial can are sales in just how now? see adding you an you update sales to on guys slight bacteria. out, size anticipation

John McDonough

TXBacteria relatively won't there grow force We sales Yeah. of almost too like the soon where QX. is. It it much. QX to and we're equipment in size mean, expecting we're the I

as between to post another it I about to be more end the FDA people. much that And grow look than more wouldn't perhaps and expect the clearance before. dozen So a of by we and half now for year,

Patrick Donnelly

maybe higher. push in also a we're revenue XQ. then And look when optically the largely just thinking on revenues, you Can making help about from XQ from XQ out us and product XQ little about think into the down guidance what the that delayed the with magnitude was step just there just is

John McDonough

No.

and John? got to have one will, so a the you you to from be, you of but come the that's to came happen looking dollars in time roughly You're in, to and instruments QX those in quarter shipped, from instrument that going $XXX,XXX instruments will the got orders to will going to $XXX,XXX, in, get of the sales, revenue, sometimes time book backlog between at instrument sales QX next. and if

John Sprague

Yeah.

We some have separate be sales actual which from portion, for first recognition small inflation on able will revenue as to we'll to a that a instrument place in the already deliverable. the quarter and recognize only lift a shipment get defer itself in are rules, representing new

Patrick Donnelly

partnership, from one, last updates quarter just then was what an just quick partnerships would any on securing be conversations Cidera the similar update and impact maybe Maybe the in there, the in one helpful. around future additional

John McDonough

have. JP potential opportunities Yeah. pipeline QX and uplift expect There really now we think Cidera of it expect it nor rather that active fact in though partnership terms wasn't in a excited about or is the very everybody of much at the in with could QX, Cidera the we team impact not nor with QX, we of is in Morgan it. and reportable do do I an measurable in There

opportunities, before a bacteria In but for opportunities, side, to in more but those we a good obviously go we'll part the the the the to the on closing see going at like are FDA clearance. side, market FDA and are partnerships, be is some ask there terms they pipeline of study. the of Candida pipeline, the come on We to new close of product to want that

Operator

from Our next is Mark Canaccord from question Massaro Genuity.

Mark Massaro

for QX just bulk 'XX. that a bacteria. reiterate of out the taking Based you on on prepared John, late material like aspects little of seems Bacteria result are I they hopped then to just out pushing and targets not but the speak want as the that it of now of the one aspects, other of any panel. I there FDA the Can bit back the of is remarks, confirm whether the contemplate out to or approval your push on here, push a is

John McDonough

that hasn't at fast been answered X this but they asking two for way think think to more the cases, that Friday forth do take timeline when just time. questions question more little We more to There panel. although time. would I a anything month bit some fast, them experienced X response a it would Mark, the a at a respond we X off end we get was and to clock than that or really delay will get it's say that anyone this able been not one that close Last being We back we're being Honestly delayed not and unreasonable from of with when of And did that I more Yeah. to in the to that more species do data will that, In and on think pretty And they get close unreasonably a requested of and can't would between FDA probably the and back it week the a appear just hasn't pretty because back end it's I process, some more they're we last had And totally or Thursday is to FDA. with. o to process. back it's respond o time, to. response clock do the that the last be but to is we're at to rapid. we X what that say time. traditional. we predict anything

Mark Massaro

line who and know a can there something clinical capability not ID, are Great. available couple But next And value, the that or AST adopt speak the you're might a without ID developing maybe alone in to be Tom, this just the identification of TX years of related Bacteria. that, maybe of I you can clinical expecting to and is you lot value whether clinical clinical value on perhaps ultra-rapid that in certainly speak is lot question question a hearing for those maybe rapid of out utility or what to to of of bacteria is a of hospitals Candida just so. AST, for

Tom Lowery

to. Happy

the are without I and benefit blowing on true blood to time back effective in were were without infections of blood draw. after trial antibiotics. is the the those do mind will patients evaluate resistance, draw confirmed can And example really a the blood best were your the patients the drawn, we best draw that the the taking. think question XX% back on blood two patients analyzed we at antibiotics not on of the I and the blood patients the and come the culture TX our test antimicrobials of is trial, on in trials, XX%, evidence about those that about for data AST patients have how over we've and trial time blood many drawn What's thirds to and XXXX taking who the gone example patients is was actually in what

despite which were patients So huge in those patients results, effective, more and antibiotics. get value actually in times faster antimicrobials be of effective XXX showed been delivered get of rapid therapy, - thirds as patients to who they in two antimicrobials studies therapy That being trial, TX empiric represents, blood able the real use XX have this of a to culture. are over has went appropriate on the in them treated as soon represent despite than a because on patients get already the right the probably antibiotics on they trying to being ID,

care know think really dramatically they improve I they're the period of So earlier that's on stewardship timeframe real they species significant empiric to that already value the We're antimicrobials the quality time the just and what in when going accelerating when helping use therapy are patients ID. have therapy. much of typically care committee, because only

John McDonough

Right.

for the of driven result, too blood not by ASP. of just were to without patients is any any so by These patients Takes that, drugs. to so long. culture. being yet patients on And means culture even the It's positions That made not infections. were on over departments need treatment is TXBacteria it by XXX four over ID. antibiotics, ASP didn't too add Tom takes summarize result there driven The XXX those and saying what means there treatment XXX confirmed panel, on that long. therapy. patients that Mark today are is to without driven XXX really Because blood What was empiric patients

the for that because as the XXX panel, only good really before XXX the existed. everyone antibiotics infections XXX covered but XX were like So therapy antibiotics XXX TX, either, needed, targets fact even patients is there the as best very resistance it cause is and of that empiric had real on of much are on it's out our though not the has on

that guessing So the good. game is not even,

only So XX% of infection. third that covered on a drug were the the

to of have XX importantly, targeted based would without on were any on for not who be it's the more value therapy these reduce to would results. been sure, ASP the TX result the patients but So, of TX use antibiotics the XX

Now, based in for of infections we result have the of XX XX. the total the result, case XX specifically, XX. them, XXX maybe maybe you ASP have And of to an changed changed would TX, would these result on in

while to value solution ASP, of in and a value working to the of it than course, than of proven be ID times of best So would that five be on the more greater together too. we're the continues be all

Tom Lowery

too, that's with a that over of grand probably CARB-X resistant targets And the will be targets. second your have part question we dozen

So, has so that will your the of other CARB-X that change, a be change, capabilities from like blood pathogen, resistant identification patients infected resistance direct classic it the resistant that knowing the with and forth.

species, round the being the given resistant. patient right to the is then of capability species off, very infection definitely our on of not also And so that able the an that know only early has out but will

Mark Massaro

to hospital And the the US FDA of question, many how is might I placements US guess degree of have then coming were expect you versus that my new of in QX, should already, that, but a contracts And Europe. bacteria, from seven larger it final post said approval than maybe related in we Europe? fair to think this significantly

John McDonough

Yes.

in the find four of believe pipeline a international. in well although were not US the even Europe we Europe more was exciting it will as see And yes, will when say I all those we US, in we proposal have placements it we only So X. going three numbers, that Europe US do forward pretty and than numbers,

say US will head rate. spirit the our will be beat the I it wants love and I So the international interesting of competition. to an of

Mark Massaro

And that, if per to I per trend expect can to you do EU utilization box utilization US ask a follow-up above box?

John McDonough

and don't. obviously, revenue the because like We XX% is a is But Mark, No. involved will, usually distributor a there discount. there

yes. So you look if at revenue utilization,

it test per If expect comparable. to you look terms them be at we in would of utilization,

Operator

from Partners. Puneet is next Our Leerink question from Souda

Puneet Souda

you the rest has And here be there related sense any to questions on targets provided on any first the targets safe? well? So out be push of AB are that of could one as the approval, that those

John McDonough

you. be if on they're tell believe questions don't and told were they would They them, they would approved. any be targets. we pay never there any to reason If to able approved other have We the they

we we're pretty never that you have other as of - straight there any that confident quite be a So discussion be already. answer, get changes, that will confident kind won't as can we but think

Puneet Souda

What's grand. could the to your timeline timeline the CARB-X million the your through with X the you provide And on there? revenue distribution sense and in How flow what's of through a that? year on that thinking could

John McDonough

another be going X It the year for for to first million million. the and year a likely second million about and is then for

took on It's be pretty X close. you equally, based that of the just work. it if spread hours So million and would out

might that, it be that slightly to So would different but build model. than place safe be a a good

Puneet Souda

the of mentioned terms your of past? last the sales And any Okay. new differently has changed TXCandida in the than sense? accounts in in Do terms setting, in other the sales or you anything or on one that in What's have the approach TXBacteria strategy that you process the six is the sales itself process, taken had approach sales cycle shortening mind the you here? ER

John McDonough

changed adoption Boy, Absolutely some I Yeah. appears it TXBacteria and accelerating and also rapid about the - of product. asking pipelines emphasized we to be probably to Yeah. department. and seem about. there It have been we super TXBacteria. of We're XX again allowed the enough. in haven't because thanks question the talk be value reception the had approaches talking driven There in emergency QX. talking really department market. proposition has We're proposals really strong to be emergency the lots a to to for that RUO in by TXBacteria We're being getting the we me. about

a We the a last quarter and seven to that's for averaging fleet. have proposals tremendous eight just years two been

in sales definitely, think here but Steve platform we of is clearance. difference to target accelerator leadership a post trained big FDA terms Hagan months making and that's the been under a over and really terrific is have really TXBacteria see in we further going last in force a develop the Our we're interest the enhance XX the big of

Operator

Paul from is question from next Knight Montgomery Scott. Our Janney

Carolina Ibanez-Ventoso

panel developing programs with for Allergan the bacterial Thank award grand on Ibanez-Ventoso. identification markers. or taking of be negative the grand are One both questions. CARB-X, because the and anti-system an can on is from to the used you got it towards you Carolina clarification same seem project This focused is independent species you be it

John McDonough

Allergan XX number developed great There is panel is right. a a some one through It's overlap, is of in Yeah. that. the CARB-X That's panel bigger. question, and of TX being Tom? significantly a plus The the Carolina. smaller that's platform panel

Tom Lowery

Yeah.

Allergan broader So the and CARB-X. some is is a then at just of the small of much work there subset umbrella

Carolina Ibanez-Ventoso

you the of for Does question, designed? and planning could And panel, trial the mean the development the when my on the of already trial protocol the second reiterated is to with met the if the that you are TXLyme spring. FDA is already this - you study clinical case, design? you reveal clinical start this on then the And more this details

Tom Lowery

Yes.

had with we're of on to to we're of the starting. design there. discussions, the when for have sort got we discussions the a FDA, back get several great to We're trial. protocols communications and lot you of the multiple do input reveal So about trial the We going have currently we that trial design - have

can order in good for get intricate pretty it's design reference Lyme So probably to you that disease imagine. the methods

Operator

is Chen from Wainwright. H.C. Our from question Yi next

Yi Chen

question is all clarify, by documents additional the already just first My panel? you required FDA have to the the data for TXBacteria submitted

John McDonough

complete the They a We Yeah. to had ask provision continue questions. to FDA.

to submitted So questions being the data them. in, come there is if more

at they getting we but close say pretty have to everything moment, can't having think the I requesting. So everything we're them they're

Yi Chen

It of this quarter additional at kind mean, early provide approval? I can quarter point, could there. second cut be you over late second or

John McDonough

nine than hopeful good certainly on We're that six think the to feel going a and we'll one. that FDA but control to I rather just timeline TX. and I'm refrain we month and really don't about later, we're from stick for we with earlier

Yi Chen

by a - end far of you or panel? you of approval of the have after TXBacteria target have the the will the store do that so XXXX base instruments for do And you

John McDonough

Yeah.

We We we TXBacteria will will have XXXX impact the once our just know we'll as guidance part obviously that clearance we have which because adoption. the that definitely clearance. of deliver think to timing of a FDA want

Operator

from Our Matthew Jones next Cross is question from Trading.

Matthew Cross

following And in to to was the that of wondering by mentioned current You've if number basis? couple line was clearance? to FDA clearance your options and prior was kind expectations these of the this more already was case of this that with setup your was TXBacteria in something a then by opted or customers the case a if I on receive location offered TXCandida done also broadly own

John McDonough

Yeah. question. Great

but process the it being So offered been broadly, in it's hasn't broadly. offered of

these we're in a do process expected. clearance. of it sure didn't a was started our force quick We excited. We're that we we sales than mass in would So and weren't to late FDA lot see doing have institution mailing, through they want That the quarter. we

these the QX And to clearance. and think going a and we'll prior contract. of we more think see to that this quarter some I is to FDA they're add products in

very that we we off So stronger expected. a than good have would feel it's start to

Matthew Cross

for curious And that update program could delivering does to or with next know if involvement attention I we might was like then on negative Allergan. event TX you look products what's to? what you've also panel for mentioned guess paying I what that us them, should the look be like key but that I next next

John McDonough

event be product plan but the Yeah. event out following the that take haven't delivery pivotal of be the through The little laid that we be plans the and end of would to yet. are FDA Allergan. that next panel study then step to It's bit That a we our would to next that, what the year delivering key early too Allergan. key and product before the think to an after would do to attention to pay the we'll do

Operator

as you teleconference. This question-and-answer concludes the participation. your you. session Thank for well today's Thank as

You may this at disconnect lines time. your

T2 Biosystems (TTOO) 6 Mar 182017 Q4 Earnings call transcript