Earnings call transcript Q4 2022

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Operator

Good day everyone and welcome to the T2 Biosystems Inc. Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, [indiscernible] Investor Relations. Ma'am the floor is yours.

Unidentified Company Representative

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

in Report XX-K and materially XX, on with with SEC are risks XXXX, law. or any to no Biosystems' statements the and from by from revise TX that statements, makes or undertakes those time. are forward-looking uncertainties SEC of by on actual cause including company to as and obligation except filed these estimates Form expressed update statements today required assumptions the on uncertainties to The Forward-looking results and company other March filings may the publicly time based the and subject to as described risks Annual differ implied

John and I that, to over With Chairman like call would Sperzel. John? the turn CEO, to

John Sperzel

call. full-year for all the joining you outlook earnings our fourth have the performance progress Thank will three quarter we quarter, and made our and discuss for priorities, our in across our XXXX Today, corporate fourth XXXX. I

call then Chief Officer, quarter Sprague, will John I turn Financial fourth results. over and review our our financial will who full-year the to

during achieving and number questions open to for and for TX of Before want I provide sales closing remarks answers, a accomplishments and the key team we XXXX. Biosystems I the call start recognizing records by

number non-COVID instrument full-year record TXDx revenue achieved Sepsis Sepsis Commercially, we record that related full-year XXXX of contracts. product revenue and and a product is driven

sepsis quarter note high with test on fourth also We year ended sales. the U.S. a record

our clinical panel the our we panel, operating and and trial advanced reduced of the pipeline, reduce evaluation to the With the to mission Operationally, Panel is transformative, our we panel. way TXCandida for around the program the Panel, completed to Breakthrough FDA the Clinical patients support medicine the TXResistance product completed independent TXBiothreat headcount. and U.S. of These Device expenses we fundamentally LymeX our practiced world. TXBacteria new manufacturing the improve and a cost diagnostics TXLyme lives the designation for accomplishments change for received the through Award and culture

the patient products mortality are they outcomes, The COVID-⁠XX essential targeted receive will which understanding faster treatment. rates. emphasized before rapid of costs of will our markets, improved the that In patient diagnosis enable to we now disease, and lead to and Sepsis status our believe each Pandemic lower therapy that target Lyme reduced include

cause is positioned to the and to the each number one nearly XX cause days. annually, requiring XX be billion within to $XX Sepsis in lives of days I'd number costing the readmitted of challenges and Sepsis like Biosystems uniquely the claiming XX XXX,XXX approximately in Americans presents annually, of hospitals, one lives one of XX% healthcare Sepsis U.S., within hospitalization the survivors day readmissions, be to claiming In year. one and systems TX nearly approximately Lyme system approximately address disease. to death our provide of million opportunity Sepsis readmitted of the XX% XX greatest background number hospital on healthcare worldwide, cause is the

older of XXXX Angeles and to the between These The hospitals nearly Los COVID-⁠XX. elevates developed in Last died in the as at are also the adults everywhere. itself especially XX% California hospitalized, patients a of had patients infection COVID-⁠XX in that be among California XX% Times figures XXXX who severe reported who while increase everyone Sepsis of risk should Sepsis, hospitals month, Sepsis number XXXX. unacceptable same highlighted report who

the cases administer broad are antimicrobial protocols these the growing only in of one risk antimicrobial sepsis to of threat of incurred can on current of protocols approximately care optimal to contribute fact half standard at The despite for resistance. therapy, patients relies that and

standard two which the has turn culture identify blood widely infection, have one, presence also current in And positive delayed a can which blood of care cause can a or The is false result treatment. bloodstream to false to five on which limitations, positive, days culture two, targeted poor relies blood known take culture positive results. can of to one negative to sensitivity,

genes Sepsis of can to to up rapid is data that increased improving targeted Sepsis treatment decisions achieving shows antibiotic For of and treatment causing that patient to risk outcomes. delayed antimicrobial pathogens patients, demonstrating detection of each targeted hour X%, and lead mortality resistance critical

transmitted disease. infection market Given is humans our disease common in to get target development by The progress and the in the bacterial include XXX,XXX considered infected United is Bacteria have year Lyme Lyme our illness expanded and most the Centers vector Control for to the CDC is caused the United with a noted Borrelia we or US. the borne bite ticks. approximately TXLyme Panel, may Borrelia Prevention, Lyme each of through burgdorferi States. disease States. Americans Disease

can Lyme relies used recommended a the infection, diagnostic headache, detect fatigue skin to If need untreated, heart infection joints, Lyme spread six only system. after unmet on CDC test fever, a nervous include illustrating presence can and for testing The four symptoms disease Typical rash. disease. sensitive to serological weeks the current can the for to left early of be accurately significant and antibodies and

enhancing and our overuse create pipeline. our delay our our of sales; panel Panel infections, prevent corporate the we're a and three advancing in on of stakeholders, for is initial believe of treatment the value negative allow very receive one, will therapy We detect patients focused data on ensure three, the TXLyme delivery antibiotics. faster, our and to operations; impact encouraging. TXLyme two, clinicians appropriate To The priorities, active accelerating performance

including starting priority recent provide on of corporate and XXXX our sales. each first an update now those priorities, I'll our plans, accelerating our progress our with

expanding hospitals. the our and instruments, TXLyme solidifying strategy installed panels plans on a our the increasing includes base on TXDx our Sepsis also go-to-market commercial with focused of products sales U.S. of targeting Panel. our direct Our for of adoption increasing force We're test emphasis while sales

team, commercial includes marketing, service, to aligned and sales, single support medical completely affairs, is which leader. and reports a Our

products, clinical reviewed publications on of the including the are our of peer Sepsis on educating use TXCandida value the consumers We panels. that support leveraging TXBacteria and focused

leaders, also traction The we're from serve Scientific on integration team I'm pleased the expanding that that KOLs market, for benefiting our as evidenced our Board XXXX, criteria in opinion models. our and gaining utilization. references increase patient our the of finish test to selection and who Advisory customers clinical key focused Sepsis are is in the or support by strong

to achieved U.S. record of or related In revenue. Sepsis XXXX, record fourth and revenue product non-COVID million, XX% of revenue XXXX, test we we quarter compared full-year and $X.X Sepsis product representing achieved growth

achieved from of also instruments States. totaling record of United XX the and We XX instruments full-year comprised from United the States outside Sepsis TXDx driven XX

our Our The TXDx and of of expanding service U.S. leading installed used to adoption evidenced the sale XX of XXX be providers products growing laboratories. hospital the instrument by was managed at instruments to of one within the base in TXDx laboratory the of U.S. internationally. XXX was of end including Sepsis the providers XXXX, a one

pleased system opportunity panels. their customers, one expanding believe instruments which large of Sepsis test for needs. to trend sold orders We're believe we account, two the continue healthcare there instrument same leading our U.S., a existing TXDx market instruments additional Pennsylvania, support the economic we of and the in the We to our of to our testing is value and clinical technology. a of Sepsis validates from Outside also

involves Our partnering target products our network strategy international sell go-to-market with countries. exclusive that distributors of in a support and

in and additional and countries products we high instruments internationally, XXXX, In distribution sold adoption to markets, in we including and networks to Europe, Scandinavian distributors expand our XXXX, adding by expanded plan value and TXDx countries XX into Africa we drive Asia-Pacific. During and further Latin commercial regions. Middle America, footprint East, introduce additional in Baltic our our South

commercial to efforts profitable in generate Ahead we areas in can XXXX, revenue. we more Looking where plan our focus

top and make increasing team integrated and to hospital clinical support with affairs drive Advisory commercial cases will the Our economic compelling use The selection increased Scientific utilization. broader with KOL, with medical account the team customers. reference our patient our equipped test and of extremely is Sepsis to existing Board priority panels data, and be

protocols hospitals will in of to XXXX. instruments treatment to management management has as the understand COVID-⁠XX the Sepsis small the Sepsis. throughout we pandemic. We quickly, prepared continue by hospitals posed be are updated our shown TXDx And believe we that more patients driving midsize and the address We've have Sepsis challenges to been by these utilization gap widened, ability that already target successfully to in where have the customers

to guidance are XXXX, accurate our the believe our choosing we product be success focus Given provide our generate measure will of commercial accordingly. ability and we revenues, in to most

achieved $XX to compared XXXX million, the to growth Sepsis in to related and million expect $X.X of total revenue XXXX. of product million $XX we XX% XX% representing We

sale This guidance from revenue no of assumes TXSARS-CoV-X the our Panel.

by be its on TXResistance would TXBacteria product sales positive as increased of of to panels, Sepsis due a Potential expect represent We the panel. growth our TXDx by expected meaningful revenue, of both standalone clearance the a supported for the sales panel FDA instruments. product catalyst and driven to test adoption impact of

operations. second Moving enhancing to priority, our our

environment, success. economic operating current is critical our to efficiently the Given

structure, operating the second at our During which expenses. we of including now XXXX, in reductions overall cost and XXX quarter reduced employees, headcount, stands

of Chief Operations Vice a we Operations President position me. as the As Vice of President Regulatory to reductions, of our now are Quality Assurance Affairs and reporting of part and headcount eliminated the Officer result, and directly

and the and process we reduce improvements to XXXX, to TXBacteria panels efficiencies. gain During TXCandida made manufacturing costs manufacturing

improvements inspection. meet our which XXXX. limited material weeks, in sufficient these we of demand. customer believe quality volume cartridges impacting product improved begin In identified This routine we've during was believe financials expect internal that will raw margins, a gross is has We ability what to manufacture our experienced issue to contribute positively current to to we recent

that customers was to during product was inspection, distributors the As shipped this affected. identified not was in-process and

March. strong, have for result, which panels, by we a the backorder a hope while test some ship of remains our we to customer currently end of As demand

believe continue our that From our our we facilities. manufacturing to Lexington Wilmington, needs and meet will current a facilities Massachusetts perspective, with operations at we

September the in a Billerica, spaces. company to commercial lease agreement order office, in reported, and laboratory manufacturing facility to XXXX lease previously consolidate Massachusetts, in entered As a into our

Court. filed landlord alleged agreement, with company company's the the Massachusetts the of due and Landlord's lease In Superior to the allegations the and January the terminated The in with subsequently complaint deposit. the breach XXXX, filed contract the the landlord disagrees landlord obligations to alleging counterclaim March a on drew its unlawfully landlord's under in and breached response a complaint security XXXX and the that fact a the

breaching trade practices. fair dealing, and engaging addition of covenants and misrepresentations, to deceptive its in faith fraudulent making In good unfair and

sheet we balance Finally, gross raising the $XX strengthened during million by first of in our quarter XXXX, proceeds.

with plan our existing our to our resources with will and We execute to leverage on operating our increase commercial growth runway. extend be cash continue and disciplined expenses revenue operating

to our advancing technology Moving third both we're of pipeline, multiple platform that our priority, expertise. scientific our our and the new products leverage development advancing

milestone $XX Our million all based BARDA to the Advanced product by U.S. development are is up which product at is to contract pipeline us Research valued supported by a Development or exercised. Authority, Biomedical if options awarded

product developing and a next one, new new focused on pipeline panel. test the on instrument, test two menu goals generation to developing instrument sepsis Our two, the is TXDx comprehensive tests expand and

pathogens menu to harmful In the cleared faster Panel clinicians allow CDC, rapidly aimed anthrax, the that at is the targeted Biothreat by a identify melioidosis, The typhus. new to potentially a TXDx simultaneously cause molecular developing therapy. test designed differentiated tularemia, from detect as on the achieve representing six and plague solution and including instrument, near-term, TXBiothreat each tests our we're blood to FDA five diagnostic organisms pathogens glanders, identified direct threats expanding

these play role emergency central diagnostic with can In of rates impact. expected mortality in and in health public to pathogens is infections involving event promptly, Biothreat rapid treated not testing and XX%. minimizing economic the health XX% pathogens, result a to If of accurate a

recently target have completed high all evaluation the sensitivity announced exceeding performance six We results targets very and the and U.S. that clinical requirements. across Biothreat demonstrated specificity

and the for FDA protecting pleased deliberate the with and goal we have the regulatory naturally filing with clearance pursuing our outbreaks of of very to from pathogens. commercial or occurring sales subsequently the submission are with We shifted U.S. Americans the threat Biothreat results of focus

under the simultaneously cause XX to designed diagnostic wait funded BARDA. been five has known Panel TXResistance genes a positive to a just blood to molecular resistance Panel TXBiothreat direct infections in from culture. days three resistant and with The contract without is blood to hours detect antibiotic test our antibiotic for The need

such The is as resistance that carbapenems, and Europe TXResistance Panel, antimicrobials and detects in which Mark under vancomycin. methicillin marketed resistance sold may common CE to confer genes

patient trial file the during plan study. the our enrollment submission to of quarter complete to upon FDA of approximately second U.S. clinical We X,XXX expect ongoing completion to our patients and in the

test the TXResistance FDA, prioritized under bacteria reminder, signs major is granted disease of direct been As contract United from upon a Device designed Breakthrough process of the that cause to Panel and early provides with burgdorferi, molecular a diagnosis a of was the symptoms TXLyme blood disease Lyme review the Panel TXLyme States. TXResistance disease. funded has The with individuals for Lyme in BARDA. test The designation by to which Panel our Panel submission. The is detect diagnostic Borrelia the in and the Lyme aid intended is

six to the over of provide TXLyme a antibodies advantage the presence the testing four weeks recommended take to significant will believe Panel can post currently create that We the infection. which requires serological body

Device prioritized a Breakthrough TXLyme submission and the we U.S. the upon from patent designation the process Office to Panel. granted covering Trademark the FDA for the XXXX, review allowing for Patent and received a TXLyme Panel FDA During

Service announced TXLyme the in we in was largest and U.S. of between private a Cohen partnership for Alexandra addition, Lyme the that winner Human up includes & Health Steven and disease $XX Department the public the Panel partnership to Innovation the Foundation, funding. million LymeX, also as In known that a Accelerator, Lyme

laboratory test is TXCandida support a commence as submission developed to detected expand direct that the the to test Auris Panel panel a of add from trial commercialization is Candida to diagnostic FDA and we a clearance. the the panel. pathogens Our commence to subsequently plan molecular U.S. plan for on number TXLyme blood of clinical to test

all difficult Candida Auris some to and methods are standard resistant the identify According by as is antifungals. to CDC lead treatment laboratory recognized a multidrug of classes health inappropriate is with to can available strains serious which Candida global pathogen threat. resistant a Auris CDC, three to

is significant existing blood panel pathogens provide test panel TXBacteria on from test Acinetobacter our that We based diagnostic molecular to will believe to adding the a advantage expand culture Candida add methods. TXCandida the detected of to baumannii to blood panel. Auris compared a time number other plan the we direct to

bacteremia been Acinetobacter bloodstream to transit ill have range from infections, which benign baumannii especially to critically can mortality has of shock to XX% XX%. patients, cause crude can reported septic rate in ICU and

States carbapenems, be with or diabetes. highlighting Acinetobacter of immune and infections rarely disproportionately occur impact the including lung those antibiotics, outside systems, can in of the many chronic healthcare United to disease and rapid weakened importance can targeted resistant settings Acinetobacter detection antimicrobial treatment.

comprehensive next Longer-term, single targets ability a instrument, access, to a products, incorporates turnaround instrument automated fully our including random an and generation we're developing Sepsis to The sample. our times a new next faster test but panel. is detect be from whole similar Sepsis blood increased instrument of TXDx generation to and number the and designed

approximately resistance than comprehensive a and detect identified antibiotic our genes in test hours. time direct of instrument test BARDA. been single greater species by comprehensive generation have Sepsis contract Bacterial with Test XX% the to and The of bloodstream The Sepsis is Panel from CDC and all infections to caused designed threats funded next Candida blood result with three a under by panel a as

the BARDA XB. a currently of extension under with XA the contract, Option in TXResistance Option filing to successfully no under base clinical operating for X, anticipate X and development We're completion phase, X time the trial. milestones Option having met cost U.S. Option allow We BARDA the all Option of

resume Option Further Option funding and exercise X from X. the completion BARDA may following BARDA's of of

BARDA not providing this uncertain timing, at on the are XXXX revenue guidance Given time. we

our of Sprague financial a John? turn update quarter detailed I'll fourth for results over outlook to the XXXX. financial provide that, our John to call and With

John Sprague

revenues test Research fourth sales. the John. XX% XXXX of test period prior-year Thank to compared sales compared was increased the the trial. Total were expected clinical Sepsis TXResistance decrease COVID-⁠XX by an in the driven decline million, for enrollments to the million, $X.X $X.X driven revenue of partially offset decrease a increase Product quarter timing $X.X period. of revenue XX% of of was XX% you, contribution by to prior-year period, the prior-year compared the by in a XX% and million,

XX% XXXX million, the test period and prior-year development $X.X by compared the for a to fourth clinical quarter $X.X sales. contract. were development X% the during driven Research compared the costs decrease Product phases expenses COVID-⁠XX of the by to of were million, decreased BARDA decrease expenses prior-year driven period a decreased of trial

to to per fourth $X.XX increase X% per share $X.XX million, expenses loss of prior-year for XXXX of compared an prior-year million, for administrative and share was general compared period, Selling, loss by million, driven period. a of $XX.X a the $XX.X were increased $X.X activity. quarter the selling the net Net

equivalents Cash million. $XX.X and were restricted cash

of and XXXX, million raised stock As we million quarter we $XX XX, the raised of December XXXX, sale. sales common in February fourth XXXX, in ATM $X.X through warrant through in

Series the compliance A are covenants. stock loan agreement redeemed no shares in with there CRG remain October any longer the We and preferred outstanding. We in preferred XXXX,

guidance, expect revenue XX% of representing compared related For of $X.X to $XX XX% growth total to XXXX to million, in million we XXXX. Sepsis product and $XX million

Given back for research Thank our are revenue, on John providing and focus revenue. on closing guidance product remarks. you, not Sperzel and to we contribution

John Sperzel

operating in improve a burn. our we've we on reduce with Thank reduce fourth the and market. product related to test full-year which revenue cash Sepsis and record taken achieved us you, and pleased commercial steps XXXX, U.S. put quarter expenses, Biosystems to momentum contracts. full-year Operationally, growing path We're globally, revenue In driven cost record believe TX record product sepsis Sepsis and in TXDx profitability John. the instrument

U.S. with the the in our the progress TXBiothreat for Our and pipeline Through completion of Panel trials trial. the product is advancing. Panel with clinical TXResistance

panel. Breakthrough LymeX FDA TXLyme and received for Award device designation we our the Additionally,

we to our including to advance ahead and sustained are to our corporate well look continue long-term pipeline three sales, creation. value enhancing we to support growth our operations, and XXXX, accelerating our positioned As advancing priorities,

turn over call line for to questions. back Operator? operator I'd to the the like open the to

Operator

At Certainly. session. time, this conducting we'll a Instructions]. [Operator question-and-answer be

question BTIG. coming Mark first Massaro from is from Your

Your line is live.

Mark Massaro

the why appreciate or guys. little guiding revenue. why maybe questions. breaking not the I a remarks, Hey, you clarity you're for to for Thank taking research sorry, prepared more out not as John, extensive you're just

product a talk just timing like I remain X your Option excuse is research you XXXX? obviously with me, heard timing? is seems But really in us revenue it right? about expect be the it you in to Option BARDA, at -- for on, I maybe and come confirming X revenue looking issue. think So may research with kind plans due of fair won't BARDA to this year Or and that this saying clock

John Sperzel

question. for Hi, Mark. Thanks the

phase, So, received half received we of to the which We've contract, XXXX, and XXXX and base X, $XX date million. of up that of Option part was Option included our which to the overall Option BARDA about Option X. XB, end XA through late in

filing us the negotiating anticipate As three. time cost trial, mentioned, a We is additional will for BARDA I complete we extension, option Option TXResistance of with to certainly give plan on no X. part that clinical which over

bit hopeful receiving BARDA's certainly The period but the at the for timing We're a about obviously is funding in little trial. clinical discretion. to XXXX, extended predict given difficult TXResistance that's

we're that not guiding. for So reason,

Mark Massaro

there. lower. to just in your us, understand that, customers costs the us ROI I say, an should nature. would want helpful. just a give a new sense certainly that's on you I Can just and customer lower probably of cost commercial focusing give you probably is mind obviously Okay, team, update Can size be for existing higher acquisition

you ground. on making have the Just adequate sure boots

John Sperzel

assessment and obviously geography we're on of sales into with and costs. a customers It's our increased acquisition sales divided our territories. existing instruments. prioritizing installed use capital of on of test why you're we're base customer over better lowers broadening spot why Mark, your XX We Sepsis focusing the

frankly have We our thinned weren't who some of quite salespeople performing.

limit we being we with I we that as reps. battle, And so by believe our of have remarks, go And are territories The XXXX to to are team open filled. filled to adjacent cast throughout those usage. the the XX sales to said speak have I prepared in planning territories

Mark Massaro

sense. but missed should year? last an I one Yes, for How we question that have about provide think may Maybe that? placements instrument makes for me, did the you new outlook it, for

John Sperzel

We did not.

Mark Massaro

the Okay, color. I Thanks. appreciate

John Sperzel

Thank you, Mark.

Operator

Thank you.

Ben next from question Haynor Global coming from Your Alliance Partners. is

Your line live. is

Ben Haynor

Thanks the gentlemen. for afternoon, Good taking questions.

you I that out that starting when the an First you LDT, see mentioned, can think as commercialization about other that you're for commercialized, heard right you is if off have on way when TXLyme, and me, from on marketing any what to revenue that color being we there? that correctly, starts

John Sperzel

XXXX. although the do Lyme Ben, point, yet. is think I first that begun the that We know not that to so as typically we Yes, We commercializing an during intend have LDT season part the be June, patterns part Eastern in weather season the with XXXX, expanded. in United the the in of been, early starts Lyme the States, the of way have may particularly

think our in to with discussion best can potential commercialize So potential that you partners year. the about about commercialization. to the in of are go we way And half on second the

provided any panel. not our in TXLyme guidance We have for revenue

So upside. that represents

Ben Haynor

that going acquire open there -- the and be so is rather my to maybe partner was next or partner question, than to yourselves? Okay, do plan certainly it own lab your basically to

John Sperzel

exploring both options simultaneously. table, those of them on and the Both are we're

Ben Haynor

it. got Okay,

take manufacturing then you the your Excellent. a guidance if look had, give And of there. So year, that range? gross margin what stay on could exiting cost consumables on do kind the can us sense the achieve of like out tuned you've you

John Sperzel

that, like take to you please? John would Sprague,

John Sprague

we're so direct have Yes, I very mean, Ben. we still margins, -- still strong

XX% on So volume reducing to operational that. plus all in impact and the then the overhead XX% the efficiencies are range

the really we think So about that's margins. way

Ben Haynor

Okay, and the cost beyond marginal so XX%, margin XX% just cover fixed gross that.

John Sprague

point at is reagent both cost instruments plenty steady. and fixed of We've for tests. the got Exactly. capacity And this

Ben Haynor

it. Got

back all the jump had for I in think that's I I'll moment. queue.

John Sprague

Ben. you, Thank

Ben Haynor

you. Thank

Operator

from next Instructions] [Operator from Your Mikson Canaccord. you. question coming Kyle is Thank

line Your is live.

Kyle Mikson

year. on for questions. Congrats for the the Thanks and for the guys. Hey, record taking results quarter the

to think. placement think on more to product guidance, going I this lack you of to guess then not backlog I guidance, you kind give mentioned, and the instruments? the is visible opportunity revenue the you, of that consumables the is also for guess, given Thanks. 'XX, do I that towards the or that why revenue skewed about less wanted Just talk And you year to John be

John Sperzel

question, Kyle. the for you Thank

we So to test primarily in Sepsis be TXResistance TXBacteria, XXXX, related that driven of cleared our in in be revenue, by cartridges, TXResistance, increased expect our and the front successful TXCandida, product getting we're revenue certainly and will by FDA. if

guidance As guidance, as of just chose to related we lack and instrument our Sepsis far focus instrument product or entire organization driving around revenue.

That includes the the compensation. includes sales It corporate rep incentives.

with likewise, so, making And line our we're in guidance that.

Kyle Mikson

right, that. for guidance, Okay. just on raw issue Thanks And All more that's a fair. you recently. think material mentioned one I the

quickly, that's by orders think to March. get back ship of revenue and to the want then on end resolved all You going recognize and you the

here then guide assumption? in year And So like delay that and the that kind that that kind what the second on later happens is stuff the then of the shipments guidance if affects as and based predicated that further Does quarter? well. into of trickles

kind thinking of Just about that?

John Sperzel

Sure.

As a have a impact quality product. raw any be highly might that a material can the in reminder, sensitive so of platform, the agent we

As the Inspection. remarks, caught in this we Internal Quality in our I mentioned prepared

revenue got some occur, customers. If to We end the none of then anticipate spill would quarter. to that that of of second the by So resolving expect doesn't into back the product that order we March.

Kyle Mikson

the going over it's breakout interesting keep Okay, and got revenue, the to here, you. but financials And here. sorry on to research contribution

as might the for denied, to about for happen that would I were complete do worst I the time X, be there, heard Panel, to X would case I what and scenario a BARDA what saying just we and over if talking thereafter. Option I like of do you extension the allow you even And for you're mean the contract extension get that mean, kind guess? allow guess guess I allowed what we, then would Resistance you to Option if X that Option to are whole? time the So I how

John Sperzel

one of ready TX, request was fund request end two weren't BARDA they at the case the that been I contract in BARDA, the to XXXX, XXXX, BARDA, XXXX one had cost of think granted option extensions the Fall time. the the at of filed, when and Between Sure. no already next the of of at

case, needed data. more the statement And contract. some according a the work were milestones time met generate in in bit of little both of to our In cases, we all the to

unlikely that with extension BARDA very no them. it's think discussions would had accept our And those not request. cost already we've I So

Kyle Mikson

Okay, perfect. Thanks that. of sources what and research And guess outside line. of the XXX% don't for revenue I some that I contribution that's of BARDA, revenue are of think other

So just there there, some guess. other sources so just have remind us maybe cushion of we I

John Sperzel

There was the the initial Award. as $XXX,XXX that we LymeX received part of

split As the dollars. There & Steven remarks, $XX funding. Alexandra to the XX put I have earlier I mentioned up million in in believe were Those involved, a XX, Foundation million Cohen companies initially XX chosen. were

end there X, or revenue potential BARDA anything companies three so $X or to shape else be the revenue outside is of that is that four, which addition way, remaining and John or X, some research understanding whittled in would form, split down Phase in number to million by in be the is there? Sprague, of My to of in contribution. the Phase going have the

John Sprague

it. captured that No,

Kyle Mikson

forward talking Okay, the that guys. look it And kind year Sperzel, it mean thanks, about this is John NextGen can been like, any the feel comprehensive years. then, I like, we've we exciting, it this any the for, there be for milestone is panel, to I of really, milestones to? products is instrument going year, of

John Sperzel

those the Obviously, we hopeful will of that under exciting. be are BARDA Option discussed Very X contract.

X. we that to In Option remaining options contract, TXResistance under fact, because Option for X, X expect complete which and are and under TXBiothreat the everything X,

funding exciting. and totally the the So comprehensive under agree. only for super be thing remaining instrument panel. It's BARDA would NextGen sepsis the We

Kyle Mikson

Got it.

Good of last just Any to the see, cash. right. the could compared And influx of much me revenue XX% more first first right. of to that I That's the kind be can if curious XXXX, headwind for cash like, on like Thanks. over burn is just or year, and John you in year, this this spend quarter. could through how the Okay. robust guess. a more for year, line and growth you growth talk if for product Sprague guess guess, maybe That's to I that quarter top for one for sense I maybe or

John Sprague

Sure.

burns to that historic XX XX So we're seeing down below million coming million.

we've should million $XX to in forward, we as and it going million $X as well start sales. leveraging costs range So Sepsis be the as headcount both controlled

new necessarily to robust got of it the isn't I team the us robust customers levels. think and goal commercial in this We've spending terms going keep a to get our more at spend, at present juncture. is

So double top down the need at think we I this to don't increase line point. to

John Sperzel

And Kyle, guide in the core In would mind, top is is And add represent increase our XX% there also business. is there that over The of no XXXX. revenue, achieved which to and our we Million that. what related a I'll just end keep guidance, TXLyme no and Sepsis TXBiothreat. product At $XX in in

Kyle Mikson

there's right And Okay. product no revenue COVID guidance? in that too,

John Sperzel

That's correct.

Kyle Mikson

it. much, right, fantastic. guys. appreciate All Thanks Perfect. I so

John Sprague

Thank you.

John Sperzel

Kyle. you, Thank

Operator

ahead. session. Sperzel, hand That you. our Please CEO Chairman and Q&A for John remarks. back I the would conference now concludes go Thank to closing

John Sperzel

our and great and to XXXX you call. XXXX appreciate a your Have Thank joining very we fourth Thank full-year quarter forward QX you earnings support, earnings all for We much. call. our day. look

Operator

Thank This today's concludes you, everyone. event.

and you for You may have your Thank wonderful day. participation. time at this disconnect a

T2 Biosystems (TTOO) 13 Mar 232022 Q4 Earnings call transcript