T2 Biosystems (TTOO) Stock Pops On Multi-Year Agreement

T2 Biosystems TTOO Stock News

T2 Biosystems Inc (NASDAQ: TTOO) is running for the top in the market this morning, trading on gains of more than 30%. The gains come after the company announced that that it has entered into a multi-year innovative technology contract. Here’s what’s going on:

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TTOO Stock Pops On Multi-Year Contract

In the press release, T2 Biosystems said that it had signed the contract with Vizient. Vizient is the largest member-driven health care performance improvement company in the country.

The agreement coveres the T2Dx Instrument, as well as the T2Bacteria and T2CAndida Panels. These products help to detect sepsis-causing bacterial and fungal pathogens directly from whole blood.

In the release, TTOO said that the contract win was based on a recommendation of the T2Dx Instrument by clinical experts in this category. These specific experts serve on one ofVizient’s member-led councils.

Importantly, Vizient only awards Innovative Technology contracts for technologies that demonstrate an ability to enhance clinical care and reduce the risk of harm to patients and providers. These products must simultaneously raise the standard of patient care and safety, making this a big milestone for the company.

In a statement, John Sperzel, President and CEO at TTOO, had the following to offer:

This multi-year agreement with the nation’s largest group purchasing organization demonstrates the value that T2 Biosystems’ unique technology confers to patients who are suspected of having sepsis.

T2 Biosystems is the only Company with solutions that can detect sepsis-causing pathogens, directly from whole blood, in hours instead of days. With the mortality of patients in septic shock rising by eight percent every hour they are not on targeted treatment, the need for hospitals to have more effective rapid diagnostics that enable earlier targeted therapy integrated into their infection management protocol is essential.

Why This News Is So Exciting

There’s good reason that the the news is exciting investors. Ultimately, this is a huge contract win. It provides member access to broader exposure and contracted pricing for the T2Dx Instrument and its corresponding panels. As such, we should see tremendous increase in the company’s revenue.

Let’s not forget, Vizient’s network is massive. It serves a wide range of health care organizations, representing a combined purchase volume of about $100 billion annually. This network includes 50% of the acute care hospitals in the United States, 95% of all academic medical centers and 20% of the country’s ambulatory market.

This is a massive opportunity for TTOO. So, there’s good reason for the excitement here.

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