T2 Biosystems wins patent opposition in EU

LEXINGTON, Mass. - T2 Biosystems, Inc. (NASDAQ:TTOO), a company specializing in the rapid detection of sepsis-causing pathogens, announced Thursday that it has successfully defended its European patent against an opposition challenge. The contested patent covers a method for detecting pathogens directly from whole blood samples.

The European Patent Office (EPO) conducted a public hearing on September 19, 2024, where the Opposition Division upheld the patent in favor of T2 Biosystems. The patent in question, European Patent No. 3 443 124, is central to the company's intellectual property portfolio for its pathogen detection technology.

John Sperzel, Chairman and CEO of T2 Biosystems, expressed confidence in the company's intellectual property position and its commitment to defending its proprietary technology. "This decision further supports the confidence we have in the broad scope conferred by our IP portfolio protecting our proprietary direct-from-whole blood pathogen detection method," Sperzel stated.

T2 Biosystems is known for its T2 Magnetic Resonance (T2MR®) technology, which powers a range of products including the T2Dx® Instrument and various pathogen detection panels. The company is actively developing additional products, such as the T2Resistance® Panel and the T2Lyme™ Panel, aiming to enhance the speed and accuracy of sepsis treatment.

The announcement comes amidst the backdrop of competition and innovation in the field of rapid medical diagnostics. T2 Biosystems' successful defense of its patent solidifies its position within the industry, as the company continues to advance its technology and product offerings.

This news is based on a press release statement from T2 Biosystems, Inc. and reflects the company's recent developments in its ongoing efforts to protect its technology and maintain its market position.

In other recent news, T2 Biosystems has received FDA clearance for its T2Candida Panel to be used in pediatric patients. This diagnostic test, which detects sepsis-causing Candida species directly from blood samples, is now available for marketing and sales to children's hospitals across the United States. The T2Candida Panel is recognized for delivering detection results within 3-5 hours, which is a marked improvement over traditional blood culture methods.

In the company's recent earnings call, T2 Biosystems reported a record quarterly and first-half sepsis test revenue, despite a net loss of $9.2 million. The company also revealed ongoing negotiations with a potential US commercial partner to enhance operations and announced the upcoming launch of their T2Lyme Panel.

The company's second-quarter revenues reached $2 million, with projected growth in sepsis product revenues to $10 million to $11 million in 2024. T2 Biosystems also plans to submit the T2Resistance to the FDA for 510(k) clearance in Q4 2024. These recent developments highlight T2 Biosystems' strategic initiatives for growth in the sepsis diagnostics market.

InvestingPro Insights

In the context of T2 Biosystems' recent success in defending its European patent, a closer look at the company's financial health and market performance is provided by InvestingPro. The data highlights several challenges that the company is facing. With a market capitalization of $38.46 million, T2 Biosystems is a relatively small player in the medical diagnostics market. The company's revenue for the last twelve months as of Q2 2024 stands at $7.16 million, which reflects a significant decrease of 45.74% compared to the previous period. This downward trend is further emphasized by the company's gross profit margin, which is reported at -267.23%, indicating that the cost of goods sold exceeds the revenue generated.

One of the InvestingPro Tips that stands out is the company's high shareholder yield, which could be indicative of a commitment to returning value to investors despite financial challenges. Another critical tip to consider is the RSI metric suggesting the stock is in oversold territory. This could imply a potential rebound or at least stabilization in the stock price, which may be of interest to investors looking for entry points in the market.

However, it is important to note that T2 Biosystems is quickly burning through cash and analysts do not anticipate the company will be profitable this year. This information, coupled with the fact that the stock has taken a significant hit over the last week, month, and year, provides a more comprehensive understanding of the risks associated with investing in T2 Biosystems at this time.

For readers interested in a more in-depth analysis, there are additional InvestingPro Tips available on the platform. These tips delve into other aspects of the company's financial health and market performance, offering valuable insights for potential investors.

InvestingPro provides a total of 16 tips for T2 Biosystems, which can be accessed by visiting https://www.investing.com/pro/TTOO. These tips can help investors make more informed decisions by taking into account various financial metrics and market trends.

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