T2 Biosystems initiates major layoffs, seeks asset sale

Published 20/02/2025, 15:30
T2 Biosystems initiates major layoffs, seeks asset sale

T2 Biosystems (OTC:TTOO), Inc., a medical device company based in Lexington, Massachusetts, has announced a significant reduction in its workforce, effectively laying off the majority of its employees as of February 13, 2025. The decision, approved by the company’s Board of Directors, was part of a strategic move to maximize the value of its assets.

According to InvestingPro data, the company has been rapidly burning through cash, with negative EBITDA of $41.4 million in the last twelve months and concerning gross profit margins of -248%.

In conjunction with the layoffs, T2 Biosystems has enlisted the services of an advisory firm to facilitate the sale of the company and its assets. This includes the company’s patents and other intellectual property, which are now on the market.

The news comes amid a challenging period for the company, known for its development and commercialization of innovative medical equipment and diagnostics.

T2 Biosystems’ common stock, which trades under the ticker symbol TTOO on the OTC market, may be impacted by this corporate restructuring. While the stock has shown significant volatility with a 245% return over the last week, it remains down 94% over the past six months. The company’s latest actions are detailed in a recent 8-K filing with the Securities and Exchange Commission, reflecting the ongoing changes within the organization.

The SEC filing, dated February 20, 2025, provides the official documentation of these corporate developments. As T2 Biosystems embarks on this significant restructuring, the market awaits further updates on the outcome of the advisory firm’s efforts to sell the company and how this will shape the future of its innovative medical technology portfolio.

In other recent news, T2 Biosystems, Inc. announced its delisting from the Nasdaq Stock Market due to non-compliance with listing requirements. The company’s stock will transition to trading on the OTC Markets system, though this move comes with potential risks and uncertainties regarding liquidity.

In a separate financial development, T2 Biosystems amended its existing Term Loan Agreement with CRG Servicing LLC, extending the maturity date of its loan to March 31, 2026, and allowing interest to be paid in-kind. Additionally, the company held an annual stockholders meeting where Laura Adams, Robin Toft, and Seymour Liebman were elected as directors, and amendments to the 2014 Incentive Award Plan were approved.

T2 Biosystems is also expanding its international presence with the sale of four T2Dx Instruments to a European distributor, enhancing the availability of its diagnostic panels in various hospitals across Europe. The company extended its supplier agreement with Vizient, Inc. until March 31, 2026, ensuring continued access to its sepsis detection technology for Vizient members.

John Sperzel, CEO of T2 Biosystems, highlighted the importance of these agreements in broadening the reach of their diagnostic tools. The company continues to focus on developing new products, such as the T2Lyme Panel and an expanded T2Candida Panel, to improve patient care and reduce healthcare costs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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