T2 Biosystems Inc

T2 Biosystems, Inc. (NASDAQ: TTOO) is an in-vitro diagnostics company. The Company is focused on the detection of sepsis-causing pathogens and antibiotic resistance genes. The Company is using its T2MR technology, which enables rapid detection of pathogens, biomarkers and other abnormalities in a variety of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum and urine, and can detect cellular targets at limits of detection as low as one colony forming unit per millilitre (CFU/mL).

Recent Financial and Business Updates:

• T2 Biosystems, Inc. has been granted an extension until November 20, 2023, by the Nasdaq Hearings Panel to meet the exchange's minimum bid price and market value of listed securities (MVLS) requirements. To satisfy these requirements, the company must achieve a closing bid price of at least USD 1.00 per share and an MVLS of at least USD 35 million for ten consecutive business days by the specified date. During this period, T2 Biosystems will assess its options, including the possibility of a reverse stock split, to address the deficiency and maintain its Nasdaq listing.
  

• Recent Financial and Operational Updates:

• Recorded total revenue of USD 2.0 million in the second quarter, reflecting a 67% decline compared to the previous year primarily due to a USD 3.4 million reduction in BARDA research contribution revenues.
• Achieved sepsis test panel revenue of USD 1.3 million, marking a 7% increase compared to the previous year despite facing a USD 350 thousand sepsis test backorder at the end of the quarter.
• Successfully executed contracts for 11 T2Dx Instruments during the second quarter, with 4 in the U.S. and 7 internationally.
• Secured a multi-year contract with a European distributor for 7 T2Dx Instruments and sepsis test panels for Poland, encompassing T2Bacteria® Panel, T2Candida® Panel, and T2Resistance® Panel.
• Improved the balance sheet by converting USD 10.0 million, approximately 20%, of term loan debt with CRG Servicing LLC ("CRG") into shares of T2 Biosystems equity.
• Maintained cash and cash equivalents totaling USD 16.1 million as of June 30, 2023, and raised an additional USD 10.9 million in net proceeds through ATM sales in the third quarter.
• Received an extension to comply with Nasdaq listing requirements, valid until November 20, 2023.

• Recent Pipeline and Clinical Advancements:

• Obtained FDA Breakthrough Device designation for the Candida auris direct-from-blood molecular diagnostic test, marking the third T2 Biosystems' product to receive this designation.
• Successfully completed patient enrollment in the U.S. clinical trial for the T2Resistance Panel.
• Filed an FDA submission for the T2Biothreat™ Panel, a direct-from-blood diagnostic test compatible with the FDA-cleared T2Dx Instrument, designed to detect six biothreat pathogens recognized as threats by the CDC.
• Established a clinical partnership with Vanderbilt University Medical Center for the implementation of the T2Bacteria Panel, aimed at evaluating its impact on antibiotic usage and clinical interventions.

Technical Observation (on the daily chart)

Currently, the stock has undergone a correction of about 93.82% from its peak within the last 52 weeks, a milestone reached on September 29, 2022. In terms of technical indicators, the Relative Strength Index (RSI) reflects a value of 54.43 over a 14-day period. Furthermore, the stock's current price is situated above both the 21-day Simple Moving Average (SMA) and the 50-day SMA, which are widely recognized trend-following indicators. This placement underscores a bullish momentum in the short to medium term, and these moving averages may serve as active short-term support levels.

The stock's significant correction from its yearly high indicates a notable shift in investor sentiment, with the RSI pointing towards a potential consolidation in the short-term.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for T2 Biosystems, Inc. (NASDAQ: TTOO) at its current price of USD 0.36 on September 18, 2023, at 07:55 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 18, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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