T2 Biosystems (NASDAQ:TTOO) announced today that it would report its preliminary quarterly earnings and provide business updates after the market closes on Oct. 12. In early trading, TTOO stock is jumping 20%.
Let’s dive into some of the news surrounding TTOO stock lately.
What’s Going on With TTOO Stock
Recently, TTOO stock has dealt with both positive and negative news events. On the positive front, the Food and Drug Administration (FDA) issued a ruling in September that allowed T2 to sell its Biothreat Panel in America.
Indeed, the FDA “determined that T2’s Biothreat Panel was ‘Substantially Equivalent’ to an existing product that the agency has already approved.” Consequently, T2 was allowed to start marketing the test.
The company has reported that the diagnostic can determine whether individuals have biothreat pathogens in their blood. The test produces results in just three to five hours.
However, on the less positive side of things, healthcare investment firm CR Group (CRG) unloaded 13.13 million shares of TTOO on Sept. 27 and Sept. 28. The sale of the shares was reported on Oct. 3. However, “CRG still owns 7.14 million shares of T2 and tens of millions of more shares issuable through the conversion of Series B convertible preferred stock,” InvestorPlace Financial News Writer Eddie Pan reported.
T2 Biosystems’ Warning
In its last 10-Q SEC filing, T2 “expressed doubts … about its ability to continue as a going concern.” The warning indicates that T2 could potentially declare bankruptcy down the road.
Last quarter, institutions bought 5.67 million shares of TTOO and sold 3.14 million of its shares. They held 2.34 million shares of the stock.
TTOO stock has tumbled 26% in the last month and it has sunk 84% so far this year.
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
