What Is Going on With T2 Biosystems (TTOO) Stock Today?

  • T2 Biosystems (TTOO) stock jumped on a Baltic distribution deal.
  • The deal guarantees neither sales nor profits.
  • Even with its huge gain, the stock is trading at just 12 cents/share.
TTOO stock - What Is Going on With T2 Biosystems (TTOO) Stock Today?

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T2 Biosystems (NASDAQ:TTOO) stock got a 23% boost overnight after it announced a distribution agreement covering the Baltics. T2 makes test kits for detecting sepsis.

The exclusive agreement covers the three former Baltic states of the old Soviet Union, where sepsis is more common than in the rest of Europe. T2 says its tests can detect sepsis quickly, so therapy starts sooner, reducing both costs and death.

Even with its latest boost, T2 opens Sept. 23 with a market capitalization of under $40 million. It had sales of $28 million in 2021 but lost $49 million, 31 cents per share. The overnight gain took the stock price to only 12 cents/share.

What’s the Story?

Sepsis is a life-threatening overreaction to an infection that hits 1.7 million Americans each year, kills roughly 20% of them, and is responsible for one of every three deaths in a hospital.

While T2’s home page sports several big hospital customers, most have found its tests fail to add clinical value. They don’t measure antibiotic resistance or change clinical practice.  The company continues to roll out new versions of its tests, however, and looks to test for other pathogens such as Lyme Disease.

While T2’s technology fills key niches in the market, analysts say it has failed to profit from its intellectual property. The stock only recently regained compliance with Nasdaq listing requirements. It now has until Nov. 1 to achieve a price of $1/share. It was recently moved from the Nasdaq Global Market to the Capital Market.

T2, founded in 2006, is one of many small biotechs near Boston’s I-95 corridor, which as Route 128 birthed the minicomputer revolution in the 1970s. Most are born from research done at Harvard or MIT, funded by profits from past industry winners.

TTOO Stock: What Happens Next?

The distribution agreement doesn’t guarantee sales, and T2 likely won’t get anywhere near $1/share without some hope of profit and growth.

The most likely outcomes are a sale, bankruptcy, or a reverse stock split.

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On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.

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