T2 Biosystems (TTOO) Stock Continues Skyward On Contract

T2 Biosystems TTOO Stock News

T2 Biosystems Inc (NASDAQ: TTOO) had a great day in the market yesterday after announcing that it had been awarded a multi-million dollar milestone-based contract. The gains continue today as investors take in the full value of the opportunity. Here’s what’s going on:

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TTOO Stock Continues Up On Milestone-Based Contract

In a press release issued yesterday, T2 Biosystems announced that it was awarded a new milestone-based contract that came with an initial value of $6 million. In the release, the company said that should all contract options be exercised and all milestones be reached, the value could rise to $69 million.

The contract award came from the Biomedical Advanced Researcch and Development Authority, also known as BARDA. BARDA is part of the Office of the Assistant Secretary for Preparedness and Response at the United States Department of Health and Human Services.

This contract is significant for TTOO as it will allow the company the financial ability to expand its current portfolio of diagnostics for sepsis-causing pathogens and antibiotic-resistance genes. The company will ultimately work toward solutions to improve patient outcomes, reducing the growing threat of antimicrobial resistance.

Importantly, TTOO said that the funding provided will be enough to move development through the United States Food and Drug Administration submission of new direct-from-blood panels that will be run on the T2Dx Instrument. It will also help to fund the development of a next generation T2Dx Instrument.

In the release, the company said that the first panel it plans to develop is a direct-from-blood panel for the detection of biothreat pathogens. These include pathogens like B. anthracis, F. tularensis, Burkholderia spp., Y. pestis, R. prowazekli, and toxin genes.

The company said that the second panel is expected to cover 99% of all bloodborne bacterial infections by means of ≥36 reported results. This includes pan-Gram positive and pan-Gram negative results, in addition to the bloodborne antibiotic resistant threats identified by the Centers for Disease Control and Prevention.

In a statement, Dr. Minh-Hong Nguyen, Professor of Medicine at the Clinical & Translational Science Institute at the Unieversity of Pittsburgh, and Director of the Transplant Infectious Diseases and Antimicrobial Management program at the University of Pittsburgh Medical Center, had the following to offer:

By providing same-day results, T2 Biosystems’ existing technology has made a significant impact on therapy decisions, and this next generation of innovations has the potential to expand on this progress. With much more comprehensive coverage of the causative pathogens of bloodstream infections, this technology has the potential to rapidly and accurately diagnose and identify common bacterial causes of BSIs, and allow physicians to get patients started on appropriate therapy much sooner. It is a potential game changer for the way we practice medicine.

The above statement was followed up by John McDonough, chairman and CEO at TTOO. Here’s what he had to say:

We are incredibly grateful to BARDA for this contract, which will allow us to continue to innovate, advance our product pipeline, and look forward to our public-private partnership with BARDA. More importantly, we are looking forward to the opportunity to develop more technology that will truly transform the way bloodstream infections are diagnosed and managed and to continue to provide new advanced tools for improved antibiotic stewardship so that we can help save more lives and provide clinicians with the information they need to help prevent sepsis.

Why Investors Are So Excited

There’s a good reason to be excited here. The news announced today means that the contract will fund T2 Biosystems through a long list of potential catalysts. This will reduce any risk associated with a dilutive or toxic fund raise, and open the door to opportunity ahead.

Not to mention, antibiotic and antimicrobial resistance is a big issue these days. Should the company be able to tackle the science behind these issues, the market potential surrounding these panels could be tremendous.

All in all, there’s a good reason that investors are all over TTOO these days!

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The author has no shares. This article was not paid for in any way. The author has no financial relationship with any company mentioned. The opinion stated is the true opinion of the author with no financial or other bias. The author is not an investment adviser or broker. It is suggested that readers do their own research before making financial decisions. This article should in no way be considered advise or a solicitation to purchase shares of any company listed.

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