TTOO - Earnings call transcript Q3 2020

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Operator

Greetings and welcome to the T2 Biosystems Third Quarter 2020 Earnings 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 Mr. Group. Gilmartin Taylor, Philip may you begin. you, Thank

Philip Taylor

include I Thank new operating that will results to TX products. Those everyone and plans and like made you, include future by marketing and statements. questions operator. comments to management remind answers to developing would today financial related statements for forward-looking Biosystems' and

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

John Sperzel

quarter for earnings our third XXXX you Thank conference call. joining

enable Before quarterly between U.S. the bolstered increase $X.X and compared XX% the company to a COVID-XX sepsis. in outcomes. the third respectively, highest total $X.X care. during the frontline prior to remarks, the and quarter, demonstrating results, care taken prior pandemic will On of was made for TX of novel gratitude answers. our the realized of call Diagnostic served the John period. during in toward products test, will XXX% TXSARS-CoV-X of third revenue needed our period, it catalyst increase with and revenue our quarter The accurate stage diagnostic COVID-XX Biosystems Product financial each three growth, patient our that and was and I of detailed million period team are priorities. sepsis and pleased optimize Sprague the has year TXCandida panels correlation review to to revenue patient the prior instruments sales TX closing testing workers. I'm we revenue ongoing those also then generated performance and third acknowledge the to revenue The compared team history. in Panel, our corporate I Total discuss the about an installed workers center the of our XXXX; make some and to year year diagnostic developing to Biosystems that open then our quarter to to tests today's want XXX% thank diagnostic progress million, TX further launch questions discuss has as new Biosystems healthcare express improve start during an and is optimize of report compared and to increase by novel quarter for XX% patient a increased the hospitals. growth that call, significant we'll I'll begin, including the at of I TXBacteria significant base past pandemic and by want for clear my the year rapid third

our States. an XX sepsis TXDx base instruments During record including increase TXBacteria sold installed in larger of adoption believe the of TXDx to running TXCandida. period, sold initially provides Panel opportunity TXSARS-CoV-X to year a XX We accelerate the third quarter, panels, Instruments, and Instruments, United XXX% we prior the this of an compared the

and year to XXXX XXXX of now revenue including of contribution revenues to our low million $XX and $XX $X expect for our the of Regarding remainder the year revenues We million, the research full of million. $XX end of year, million outlook product we're revenues total increasing guidance. $XX full million,

way billion, We death researchers change U.S. million success from people has XXXX and Health around the sepsis, our the the pandemic to $XX medicine during people The the the care study second caused expect sepsis of that focused practiced is estimates hospitals lives Services, least of States nursing accelerate current of potential to to half marked to more the globally. United Instruments Human at XXXX. by of States while patients before the and our be TXDx remains pandemic for even created technology, was United XX A in the the in patients that each sell clear, estimates. through adoption true the XX from improve staying diagnostics on which increase world. transformative very mission XXX,XXX mission; fundamentally To the in year, previous our the of Department cost skilled facilities a than in written nearly conducted of and

company hours, the need to therapy pathogens can positive the before, days identification the blood hour in X%. with able time, up wait to rates mentioned products treatment a delayed is and whole of five targeted without we've to three TX mortality increase to As is only identify causing as each Biosystems cleared blood race of culture. from by sepsis sepsis FDA a directly for against

accelerating progress of and combat the faster TXCandida novel potentially our within operations, quarter details TXBacteria area each pleased identifying and in the the lifesaving well third Panels success, antimicrobial Instrument, our on first we the To business our the set months Our and without prevent unnecessary the in achieving spectrum get helping nine long-term use the year, traction remain clinicians growth and through as for reducing corporate TXDx advancing pipeline. products in three I'm XXXX. improving including our therapy, sepsis and position TXResistance the sales, on to at focused resistance. we our antibiotics, potentially and of of and pathogens, aid broad targeted sepsis-causing beginning priorities, technology, as

to focus Consistent shifted was the about Instruments U.S. emergency Panel, TXSARS-CoV-X we by the increase Panel. This during an sales same previous the to utilization. test market orders to U.S. market. of us from the on existing TXDx which Food Instruments. our $XX,XXX our placed from the adoption This are we increased target Instruments in the the our and served remarkable. our Instruments a announced the addressing our we reagent we at new start service significantly in test we in our orders and of during quarter, Administration and and for business, we among sales contracts target TXDx for sepsis model demand came being U.S. pre-positioned beginning test the astounding Instruments impact contracted third of customers, a to our rental overwhelming to from along commitments At obtain of third allowed our of Fueled Drug during we our XX on the majority base installed We sepsis to XXXX, accelerating double an purchase continue has minimum quarter diagnostic product adoption commercial the XXX% with hospitals TXDx sell sales and the by launch TXSARS-CoV-X At Panel. to installed instrument compared TXDx annual U.S. TXSARS-CoV-X sepsis by U.S. sites model, in shift is increased ambitious which of increasing products. XXXX, potential sales an TXDx pursue XX positive our authorization the our our product COVID-XX with quarter Let's achieved time, catalyst resources to United third objectives, the Instruments future upfront strategy revenue of hospital purchase The quarter commercial for XXst, with adoption by first TXDx having utilization. priority, increased prioritizing base molecular large U.S. test providing $XXX,XXX. utilization States, which U.S. the third instruments our test, set to U.S. August of year volume model prior customer On use period. standing increasing

into Instrument nine resources implementation, we hospitals In XX in than also and shipped following historical of the that U.S. quarter running Panels and service Panel served multi-hospital TXDx one we're we average COVID-XX capital migration delivery inform the you our significant third setup, to U.S. agreements also its two was customer opportunity installation process during increase begun fourth put executed of during thrilled additional to fact, months. have accelerated commercial direct from perspective, month sale. access was the remain To of for support we testing for validation, third hospitals TX networks those technology. single to implementation. demand number a for quarter, TXSARS-CoV-X TXDx within a increasing form approximate Instrument hospitals to unprecedented I'm TXDx direct increase numerous from annual routine of the launch. the installed each testing U.S. mission-focused the a Instrument our our IDN support in team continue the size TXDx less and to a sales to We're potentially TXSARS-CoV-X and Biosystems Instrument the single annually instrument quarter of during utilization providing from instrument. drive to to multi-state hospitals base, of $XXX,XXX The lifesaving To the recent can on to sales, our experiencing U.S. instruments targeting

future. they unable is also the diagnostic decision hospitals hospitals guarantee technology, that not consideration hospital diagnostic for that of testing be in to demand additional patients U.S. contracted TXDx of which near focused bring challenge, Co hospital delivery vaccine test. to many meet demonstrated relates on super infections to we a improve a Instruments, TXDx value our COVID-XX our that purchase hospitalized also the has COVID-XX. tests, are and We ability many understand and in requiring a manage sepsis, specific Panel And the we that these are landscape, it to five our to to test in another experiencing But is infections, supply part data Recent lead our ability effort key ability of as the testing to platform's also significant customers. a to durability and see required are are of in advantage. for look our because both their platforms our COVID-XX sufficient all for to the value their of molecular and to an growing believe that likely multiple hospitals positive of TXSARS-CoV-X unprecedented and implement can sepsis. Instrument with many strengthening manufacturers to quantities thinking approved are further is demand. is may In on solely positive quantities U.S. As care supply which testing about competitive acquire are SARS-CoV-X one customers address patient

may efficacy, obstacles headwinds vaccines resistance. face consumer that understand and and also like We availability, limited

will the products extended remain our and XXXX in-patients a additional reimbursement to and tests TXDx we through expand On new this decision future. that panel the such, installed year TXBacteria demand Medicare base end upcoming quality lifesaving year. meet add U.S. to for TXBacteria in on additional important well eligible leverage for for diagnostic at the an bacteria It's demand hospitals Services to September hospital the reimbursement Medicaid for of COVID-XX this remember strong this significantly the for least up the Instruments U.S. high will increase to year treating to $XX.XX addition, fiscal objective for larger to sepsis this of of Centers to cap we is payment be the XXXX. diagnostic We for receive molecular of for patients. panel can that instruments for the test As believe the adoption installed during X, potentially molecular COVID-XX our With battle U.S. XXXX. COVID-XX our potentially Medicare about base use into to sepsis an announced XXXX, believe pandemic catalyst teacher technology continue with U.S. the

priority, improving and reductions. cost operations goods of second prioritizing our by to Moving expense

reduced a by number our We're panels. test prior reduced We half and with to manufacturing SG&A cost During compared aligned product primarily priorities. our the real the benefit in the periods. XX%, expenses of initiatives the corporate footprint to reduced focus beginning of investments these improvements cost our XXXX, to facilities, by in our made reduce of of first year estate revenue on reducing see We cost financials of our our consolidated sepsis form reduced and in and our headcount of significant products, now the progress we implemented structure. XX%,

volume associated sales and to improvements. is addition, the Panel increased overhead chain In and TXSARS-CoV-X our our absorption leverage us new allowing implement with supply improving additional

hospitals. panels our During the we from our production third the Instruments test U.S. and demand increased output quarter, to rapidly of meet TXDx

to XXXX, goal than Our year prior represent deliver a States in the of seven-fold increase period. is in least second which Instruments the at over greater United the XX TXDx half

addition, year test, seven further of XX,XXX to plan tests our quarter plans, our control assurance quality over expansion a In measures quarter these increase taking To manufactured period. support hiring, secure greater approximately during XXXX, to supply fold to We capacity all test than XXX,XXX XXXX. chain. manufacturing personnel approximately third the also we manufacturing, increase the per by we early necessary and and are prior quality

As testament a the and plan base and coupled panels depending TXSARS-CoV-X on each standing enables up schedules order TXDx reminder, manufacturing instrument forecast Instruments day, to with accurately customer calculate consume XX accordingly. our capacity us has installed That process on our to per workflow. based to

expanded awarded under completed milestone the to By and XXXX. sepsis which totaling our six next pilot led instrument decision one The prioritizing pipeline. panel, the development this XXXX. funding contract the Moving based phase government base option and in million, at US to progress on exercise in $XX a the panel. of BARDA million to contract, in to phase schedule The or contract valued our base team on We budget. options development September our third contract develop by by all of on generation up biotech milestones priority, programs of by a XX, product announced was $XX.X advancing recently the contains

decision fight addition believe to of antibiotic them testing. to designed XXX panel results and major or require more to and by detect for And XX% schedule global blood resistance one management a about diagnosis awareness highly Biosystems reinforcing and a threats, US that as species, products vulnerability impact disruptive. pathogens It objective blood to new next and negative biothreat including products As believe shared highlighted We and for BARDA's next We Centers development, and be our the pan-Gram and need identified in to remain terms to of We generation our addressing to forward up the may pan-Gram to our Disease a sepsis differentiated is and then will TX infections. has current on being all panel. option reimbursement. diagnostic future sepsis the the expanded do will be the improve an than borne on future as contract and for positive incur reminder, address have generation instrument exercise role month believe each pandemic highly CDC. all positive instrument This panel, society's the borne emerging pandemics. to raise the well from of growing develop that submit a resistance we expenses infections potentially bloodstream leap the these as direct important and Control cover Prevention, blood threats. We antimicrobial ability can play in expanded

John? financials. the Now quarter third call Sprague over the John to I'll detail to turn

John Sprague

and increase and quarter sales revenue share, quarter the of prior the third driven of XXXX. by administrative revenue XXX% XXXX driven September Total the was $X.XX for Thank to were increased driven million, increase panel cash, and activity expenses. cash period. from BARDA under million, an was of an and the was prior Total $XX.X XXXX $XX.X of instrument period, contribution XXXX third of you, year the cash period. XXX% for XXXX per general period, for $X.X loss million, XX, the and XXX% of and loss the marketable quarter by product to $X.XX by million, test current the revenue to Net of equivalents, Product offset for million as $XX.X prior of compared million, per and development $XX.X Costs year of compared lower selling, prior $X.X the Research compared long-term and increased John. increased to for by restricted third prior was $X.X expenses a revenue compared period, in net year the compared increase $X.X an XXXX an securities of quarter million the increased quarter third operating research to cost for increase year sales. of of million, year third contract. share

and capital million, We revenue periods inventories including will XXXX prior XX now to sales. research approximately between will of receivables of remarks. increase closing you. be million to reiterate to Thank quarter fourth higher to to increased compared contribution the To working for of sold the provided we $X.X and quarter guidance expect earlier, $X.X million minimum $X.X $X.X revenue Instrument XXXX. a we And as U.S., fourth in to total revenue million. expect John Sperzel $X.X product back TXDx between and expect the John be In

John Sperzel

you, Thank John.

transformational Biosystems. third was for TX The quarter

long-term entered commercially molecular We about ability As grew for to And during our to of the XX%, the that of excited positioned to our We testing and our sales US from driven look quarter strong we lead in now forward market. Biosystems diagnostic questions. open Instruments future. hospitals test, strong progress products. growth up COVID-XX our continue U.S. in customer and the company. demand success. the we're We with fourth as on nearly our sepsis providing as diagnostics for adopt our for molecular focused a Operator? updates future TX confident achieved demand TXDx commitments have record from installed products We'll to our by it saw the base customers quarter,

Operator

with question Our [Operator Max from Canaccord is you. Genuity. proceed. Please first Masucci thank Yes, Instructions]

Max Masucci

taking Thanks on the congrats the questions, quarter. and for

trends lab any demand unique assumptions guidance? seeing implied the if can COVID-XX you you're key the hospital with Just the into or in particular, QX the examine highlight embedded setting recent in resurgence just and we in

John Sprague

Max. Hi,

mentioned the for instrument strong I both We demand as and the TXSARS-CoV-X are seeing Panel. for

commitment ways able differentiate of One of on chase we disappoint also backorder. try systems. customers remain utilization making we a deliver by laser base, deliver diagnostic placing testing And hospital by our opportunity almost specific our promise competitors the And ourselves to and because only test accordingly. from we're can customer our is number we on calculate test there single volume production U.S. COVID-XX tests. to installed the of long-term I've to core to witnessed our accurately suppliers of focused is a their immediate which scale a out target, this on them every

promise, on hospitals. deliver with our strong establish others these So relationships

So lead sepsis products we're better trusted potential forward. partner, which a in will our to moving

Max Masucci

Great. types question And two playing multi-part in weeks early how July, targeting you just multi your strategy many generally, hospital in here. Can just then with the specify that in in out then multi these here customers? just systems you find test? contracts? came from get a November, your And launched door how is placements the hospital recent I you easier mean of do versus to it COVID-XX when of

John Sprague

of Less to launch our test into And hospital integrated our US delivery as networks. COVID two without individual was the instrument those target hospitals than strategy, XX systems delivery or both integrated networks. sales from half as came going hospital well

same execution the quarter. pleased So the the fourth we'll third to follow that quarter. that And during we're approach with continue really had during we

customers continue using can And get these using accounts, environment. having We're so long do to prefer meetings, as telephone we're to to I prefer the the In access we meetings, our add to sales ability technology, team we're having do we're us going our to mentioned, prepared with same because QX. terms way. so we'll go of that's to thing email, zoom we're we're we're this things. so, hospitals what of a accelerate work current during in lot our calls, sales the that to doing, to

Max Masucci

you give in TXBacteria Great. that placements one. for there's us contracts on multi-year well? TXCandida how Maybe QX one Can if more signed percentage and certain of quick include for contracts? a sense as of And many just a these new your consumables

John Sprague

the them all or would they're about all year on process. COVID have that Yeah, about of a into committed And of are consumed signing sold that purchases. were one say They're in capital are year all feel longer I wouldn't get the than QX all I standing instruments. entirely one They've in good really customers, The order whether with we most contract. They contracts. paid for a fact, that. instruments testing. specifics

subsequently the plan of testing space some when strategy instruments are the customers adopted convert testing, is those So and on but allowed through our COVID the is sepsis that fully right to now test.

Max Masucci

the question. taking Thanks Great. for

John Sperzel

you, Thank Max.

Operator

Please Our next is Puneet Leerink. Souda SVB from question with proceed.

Puneet Souda

Hi. John. Yeah. Thanks,

first So, bit a clarification. a of is question

test are can from COVID out, test then driving that to are conducted tests us You that wanted just sepsis I just in -- would is each of give COVID provide if but rule there rule sense obviously you you you also being if quarter. the COVID-XX appears a the clarify, could clarify and how if those I sepsis to the wanted that, it contribution of the TXSARS-CoV-X have to TXSARS if subsequent outside?

John Sperzel

Sure.

tests QX mentioned close as were year-over-year up XX% remarks, to I sepsis in QX XXXX. Our XX% something versus like prepared XXXX the and

progress So continued our Those feel figures. business. good are about sepsis the we global of

terms our COVID of majority as go Instrument significantly sepsis exactly base increases customer later to we sales to of a expected, is QX will of testing. our TXDx what installed serve our of driven, evolve was the COVID, because strategy the during again that in US In into drive natural

Puneet Souda

Okay.

terms you're your the accounts Okay, accounts, great. sepsis Canada that latter the one what but of of sense sepsis and And is to is us XXXX things continued things test, uptake some a how the you product? through transition of Obviously, near And give point these of see strong happen. some could conversion seeing walk just the of seeing to half, long-term that want to of if to where as into some sepsis as volume these COVID COVID so clarify, you're confidence growth to of going evolution hopefully seeing decline. I of from a increase, here early in then should early to that hopefully maybe likely in but you're increase term, are we in in in is go us a at

John Sperzel

a Sure. Puneet. question, great That's

focus that part Instrument important is customers, this for important COVID-XX our sell we is the sales is it's we instrument they targets. And sepsis which we're internally solution. U.S. of pre-selling because our as process, testing, on hospitals, COVID First, we a why are TXDx sales. target our which And unique right refer sepsis the before driven

Second, priority hospitals when to that most a And sepsis we even we top top the midst remains to COVID, said in a talk prior believe was priority. of the pandemic.

As of the I U.S. indicates to estimate since I $XX months. in healthcare months, has TX $XX billion XX mentioned earlier, billion, over cost the that data to our billion sepsis from is government the from that and risen system $XX CEO, estimated billion to $XX annual joined became XX

it's better. So not getting

vehicle have to when you our hospital, the of And a to the it has most launch customers is does as from said, transition through demand in and COVID clear hope Finally, laboratory. been challenging convert of we Panel one hospital testing, strategy testing. that a that TXSARS-CoV-X And we subsides. stakeholders sepsis the the

strengthens for bring So with the value additional that TX all hospitals. have that and can you are example, sorry, many what data are to what a patients hospitalized sepsis that also as management has the which we within and to will, also infections, to are we sepsis. shown lead key access hospital of I'm if five super clinicians, positive -- lab one plan This can that champion, process, of and to for of coinfections, positive, a in recent which we advocate or the Biosystems stakeholders COVID-XX other

Puneet Souda

you're what Okay. And already the That's into increase -- sales in the fourth you what you through great. could here if additional fourth into And investments maybe sustain your terms as by the quarter? of are in XXXX? growth doing it team to provided in here the quarter, number that investments on wasn't us to the thoughts sure walk should

John Sperzel

those in reverse order, to Sure. Puneet. I'm going take

vehicle. I blade a rolling And So, and book-of-business a nature first they business. to decisions can $XXX,XXX care ending of in simply we the I to That's selling of tests instruments QX. for good bit the solely testing customers, of base the where give context tried of that's context that the information The of And are why COVID to to annually. QX instrument providing trying for is sepsis. on utilized razor-razor of into instrument fully used take mean, of the all, about business we're had potential patients. about handle our to really a a up a how make and we're value so little installed some

better prospects So more functioning business the nature win. committed orders of next a out the is and razor-razor to fully we quarter, into the purchases, going have have understanding the new instruments we go blade the our are less customers

So that's all part of our strategy. commercial

adding science into adding and just so it's didn't the than of it's of the XXXX. -- medical because not breakout expect number We're terms field We're add -- We're it's a single representatives. the type didn't service In a people single person. to just disclose of adding we team, implementation describe person sales those. representatives. going we liaisons more we a type people of of We're sales adding

Puneet Souda

squeeze then terms in BARDA last look potential you the in Okay. But there. overall, your venue at this good contract offering progress to approval well? reimbursement see expansion offering, for if what's could as and I the one, of potential as regulatory timeline And here

John Sperzel

XXXX. it for a timing submission. assuming not we BARDA today contract, And XXX(k), runs the we get It the here as includes XXX(k) which sit do. So through include does we

pandemic. think call, It government forward. updates forward there from has be look the to to that to as with consumed opportunity there's government's those I that aligned I But been go schedule. the improve that last giving and said, I have the U.S. on obviously because yet, our occurred As current an anticipate with will progress pretty not funding on the those we discussions

Puneet Souda

you. Good Great. to right. the All progress. Thank see

John Sperzel

Puneet. Thanks,

Operator

Mark is proceed. Massaro question Please Our next from BTIG. with

Mark Massaro

questions for Thanks Hey, the on and the quarter. record congrats guys.

John Sperzel

you, Mark. Thank

Mark Massaro

is first what customers? versus on My new the record question percentage existing that went placing hospitals to of to are XX TX placements

John Sperzel

Overwhelming majority.

Mark Massaro

new. majority to overwhelming To

John Sperzel

To new accounts, yes.

Mark Massaro

Okay.

John Sperzel

get to the for the the that you into two literally. tell IDMs can company hospital trying systems, been I had years,

feel about we that. great So really

Mark Massaro

the to there? the see they Okay. number crisis you handle IDMs Or systems through of potential And think large additional do been have the need you do COVID likely two XXXX?

John Sperzel

to of have they instruments does them handle need enough what Biosystems. One from TX

The I there's expand. other one, to think potential

Mark Massaro

an goal And you annuity goal the And about the $XXX,XXX in per How at talked continue system to I here does you've Okay. can it the hit firm. comment your year? as on QX? end for know then of important track to increasing

John Sperzel

Yeah.

panels. an working saw Mark. we're So We uptick our sepsis in through that

And and way the north to foresight beginning out we sepsis laid we about do look that continuing But fantastic. of number. the see the $XXX,XXX. didn't it great might I all dump at that is be mean, of our that's What we're annualized We utilization. So of COVID It without the laid the that. would increases number the without want it would or in benefit instruments base installed to way the of pandemic. out feel we year. a not COVID into

as to we're accounts trying and hoped, It's sepsis because to driving fast in getting our headwinds not we've progress. we're So with had into but our some utilization. sepsis pleased an continuing business, as of separate. keep we increase those see completely the panel seen customer We're

Mark Massaro

Obviously, you as this fine we placements XX that's quarter, or is place year? give as business you tuning know, next know, strong XX a models you demand, think Okay. for a your us about off Understood. your hitting XX how launch then, or can think funnel quarter. And demand see sense our about number? next Or, you more, roughly think XX, maybe really you decent Do and the a as for year. we next

John Sperzel

demand lay in do early instruments sites, demand -- year, for drive I We if be was to as earnings patient point, that plan XXXX. that XX, start will that a have off saying that XXXX, announce didn't that guidance. can year full samples, forecast before, get we priorities customer December I would for we you as into mean, set we'd drive will base. Well, you we that guidance out in metric of really will, for important of jump XXXX number running our when the to because installed and typically the where

Mark Massaro

panel you if comment in comment into sale Can the over can. I expectations maybe you driving on what not revenue? if might process the Medicare the me, impact, how And be might coming an quarters? bacteria your from question Last NTAP Understood. having on it's be Okay. maybe can playing

John Sperzel

these And that's yet, are environment, COVID Mark. customers dealing headwinds where consumed fully COVID one in having I an right not now of think of It's impact their own patients. with

to an So technologies, new bandwidth they including is. big have of even address issue don't considering lot how of it sepsis, a

to anticipate that going important. forward we going So that's be

they're pandemic, through have vaccine, bandwidth. address going therapies, and to then, going an be NTAP As part of customers increased with to we diagnostic more tests, that. it's And be sepsis to important get whether of think we're control this better should them, there

Mark Massaro

guys. Thanks, me. for it That's Okay.

John Sperzel

Thank you, Mark.

John Sprague

Mark. Thanks,

Operator

from is Securities. Steve question Brozak WBB with next proceed. Our Please

Steve Brozak

a Follow these obviously, note. positive for you've providing, are should it, I grim Congratulations times. on done. put Thank you everything that

subsist a this you have us are have been to side to and COVID elderly modeling future on elderly Just month this a point where Can one I'll queue. them number being question timeframe has and how the that quick back you. in for look of care are steps CMS patients would hop your and how then XX% patients, especially quick would tell specifically into succumbing grim you within need with that able the the tracking detection? those Thank at the react of that six both. address it

John Sperzel

illness, But statistics. battled those I Steve. hadn't you, Thank I seen disheartening who's can are someone say, those a life as statistics. threatening

between the side, should like underscore support as On technologies both ours government rapid, and of like I'd why accurate, can also COVID. implement the should those pathogens. frankly, a why They that should highlight and reinforced U.S. sepsis technology They sepsis. hospitals well, causing detection and ours, COVID-XX address link the say the business sepsis for need figures

I early think getting we better. very saw seems not the are link two. And statistics these those between it

Steve Brozak

that So obviously the I'm but self-evident this for that strengthens unfortunately there -- fact -- there's these patients, away, I a addressing going there's statement? case this adoption issue a for that's TX, -- for now the guess of fortunately I right of guess, that right, out way and

John Sperzel

we would exist laser why focused competitors chasing also COVID we link many many We between opportunities. into market critically sepsis. say and ill other to patients a patients. to hospitals everything treat that get to are this them. are as this to hospitalized going is I out we're ill as staying reinforcing many are not we're -- There's on there, can that. There help hospitalized And true possible do Steve, is chasing patients, those we're critically to

So they have better outcomes.

Steve Brozak

Great. progress Well, made again, future. congratulations obviously, thank this quarter on that the you for and you've taking And, that the into question.

John Sperzel

Steve. you, Thank

Operator

with Ben is Global. question next proceed. Alliance Our Please from Haynor

Ben Haynor

taking for Thanks gentlemen. questions. afternoon, the Good

delivery off, the me install First on for resources.

that two the a kind is going it's historical demand progress down trying install or of a nine to just that months made average with up month, week to, it adding, going I to of take is Or weeks? down quite know, the to have You you're keep the you've you that sales resources actually impressive mean, it incoming a from

John Sprague

to that part to should as obviously possible. that it think to anticipate we do don't we're reducing going our make efficient week, I as

for This to to to customer well great moment provide closing support. how run are probably a is a how these sale we need Because TX so And to the do about a stage see been by It's effort like super is adopting as just be customers month's to that to that. could monumental samples think they good good and partner. our routine how been we a in sepsis from expect. our this for customers more a them going of satisfied continue in as we've pandemic think execute front is a and on set resources I time, panels. having be impressive we team. open It's we we patient basis

Ben Haynor

trying it good And if get right? people fact in to quarter, hearing sounds create they then, expect good the this a sell you, there, hiring a visibility know, with you're they That's good you I'm and the you Okay. Yeah, XX to experience. pretty that this just systems have point. like

John Sprague

in progress. November -- X, But we're made we've really we've so sitting made a good have quarter. to still the we ways go on Well, here

Ben Haynor

Okay. of Fair enough. the at And then right in system guidance could the lastly, QX, and for that terms me, consumables of achieved? with look let's of in or in a are those those. margin kind say you do give in hit sales, you assuming you're that the then, now, associated guidance, what embedded think where us gross like Can you figures sense

John Sprague

just I full $XX million say and between for Something, million guide XXX% year the increase it the year, for $XX is and XXXX, context, that the revenue that would an Ben revenue we've XXX%. over total somewhere prior that's between given

sales also expect is mentioned we we the a increase product as we second occurring in And is guide margins, on We're increase guiding the of XXXX. all year do half over of in typically instrument earlier, XXXX. that that. substantial half a because second substantial don't the the that year, So not U.S., the they're over in the gross

hopefully, that's you. enough context So for

Ben Haynor

taking that. enough. questions, gentlemen. Fair it I'll leave Okay. at a the Thanks lot for

John Sprague

Thank Ben. you,

John Sperzel

you. Thank

Operator

the reached of I'd John like turn question-and-answer to closing. for We've end to the call the back over session.

John Sperzel

much. call. say to XXXX next you third thank to support like joining you our quarter I'd We very look updating forward quarter. for your earnings conference and appreciate Thank

Operator

conference. concludes you. Thank today's This

thank time. lines your you participation. for You may And at disconnect this your

T2 Biosystems (TTOO) 4 Nov 202020 Q3 Earnings call transcript