Sepsis may seem like a concern of the past, something that barely affects society ever since medical communities stopped believing that puss was part of the natural healing process. That notion is far from the truth since it is estimated that 30%-50% of hospital deaths are due to sepsis. T2 Biosystems, Inc. (Nasdaq: TTOO) is likely to rebound from its recent fall for that very reason. TTOO’s sepsis diagnostics products provide an accurate diagnosis within a short time span, which as a result minimizes mortality rates. As a result of the quality of its craftsmanship, TTOO acquired significant contracts and extended its reach this past quarter. With the stock trading near its bottom, TTOO stock could be one to watch for a rebound soon in light of its accomplished feats.
TTOO Fundamentals
In response to the company exploring strategic alternatives and restructuring its business, TTOO stock fell 62%. Fearing that bankruptcy could be on the table, investors flocked from stock, and as a result, it plummeted to its current levels. That said, the market is likely overreacting to the situation at hand.
TTOO still has a lot of value as a company due to its specialization in sepsis diagnostic technology. It even monopolizes the market for septic fungal infections diagnostics and its products are in high demand domestically and abroad. Given this information, a bidding war may ensue over TTOO which could make its current PPS extremely attractive. Additionally, TTOO’s increasing reach and clientele list may also catalyze the stock, which is why entering TTOO at the current PPS may be opportune given that it is near its all-time low.
Combating Sepsis
A fight against sepsis is a fight against time. Sepsis-related mortalities increase by 8% for every hour treatment is delayed, which is why TTOO’s products are highly desirable. Its products provide a quick diagnosis in 3-5 hours to a wide variety of sepsis infections, which is why TTOO is likely to obtain more contracts and increase its reach. As is, TTOO stock could be undervalued at current levels thanks to the company’s incredible growth potential as it becomes more popular in the diagnostic field.
Septic Fungal Monopoly
One of the most notable devices in the field of diagnostics is TTOO’s T2Candida Panel. It is the only FDA-approved device that provides a diagnosis for septic fungal infections. T2Candida grants TTOO an unprecedented market advantage since it basically monopolizes the world of septic fungal diagnostics. This may likely increase sales as TTOO’s notoriety increases amidst its increasing contracts.
Magnum Opus
T2Bacteria panel is probably TTOO’s magnum opus. It has both FDA approval, and a CE mark making it clear for commerce in the US, EU, Switzerland, Iceland, Norway, and Lichtenstein. According to its latest Q1 report, TTOO’s revenues grew 11% QoQ mainly due to T2Bacteria panel’s sales increasing 110% domestically and 55% internationally.
TTOO’s magnum opus tests for bacterial infections are mostly associated with hospital-acquired infections, like E.coli, S. aureus, K. pneumoniae, and E. faecium. These infections are not treated in conventional antibacterial methods which is why quick diagnostic time is especially crucial for treatment. By decreasing mortalities due to hospital-acquired infections, hospitals save lives and cut expenses which is a notable incentive to purchase T2Bacteria panels.
Growth
Recently, TTOO has been enjoying increased sales due to the effectiveness of its diagnostic capabilities. TTOO’s most recent Q1 report revealed that it secured two multi-year pricing agreements with US healthcare systems consisting of 69 hospitals. Additionally, it executed two contracts for its 5 T2Dx s instruments, which run tests from 3 of its panels T2Candida , T2Bacteria panel, and its COVID panel.
Furthermore, TTOO is increasing its reach in the Balkans since sepsis infections are more prevalent in the Balkans according to multiple studies. As is, more and more healthcare institutions are relying on TTOO products which would likely lead to more contracts moving forward and a stock run due to an increase in notoriety.
TTOO stock is currently at rock bottom, however, it might be extremely undervalued. Its market cap is currently valued at $2 million which is a fraction of its cash balance which is pentuple the value. That basically means that TTOO stock has 5 times its market cap in cash on hand. Moreover, TTOO has a low float of 19 million which makes it more attractive for investors since it could run quicker on news. That said, a bidding war may be the most likely outcome for TTOO considering the value it would add to an acquiring company. In light of this, the current PPS could be a profitable entry for investors either for a TTOO bounce in the short term or in case a buyout materializes.
TTOO Financials
According to its Q1 report, TTOO’s assets decreased slightly from $34 million to $32 million Q1 2023 QoQ. With this in mind, current assets declined from $19 million to $18 million, however, cash on hand remained at $10 million. Meanwhile, liabilities increased from $73 million to $82 million QoQ which was mainly driven by current liabilities growing from $10 million to $17 million.
In terms of revenue, TTOO witnessed a steep YoY decline from $7 million to $2 million, however, revenues increased 11% QoQ. On the other hand, its operating costs decreased from $22 million to $15 million, which is due to a few delayed projects and cutting expenses. Despite that, its net loss increased slightly from $16 million to $17 million.
Technical Analysis
TTOO stock is in a neutral trend trading in a sideways channel between the support at $0.1040 and its resistance at $0.1697. Looking at the indicators, TTOO is trading below the 200, 50, and 21 MAs which is a bearish sign. However, the RSI is oversold at 17 and the MACD is curling bullishly.
As for the fundamentals, TTOO’s most recent catalyst was its Q1 earnings report which provided news of QoQ growth and two major agreements with large healthcare organizations. With the stock trading near its all-time low, bullish investors could find the current PPS an attractive entry point as TTOO could be poised to recover soon from its dip either for a dead cat bounce or if it secures a profitable buyout.
TTOO Forecast
The market likely overreacted to TTOO exploring strategic alternatives. It has an incredible market advantage due to the efficiency and speed of its diagnostic capabilities and its recently secured contracts in the US. Moreover, TTOO’s expansion into the Balkans could prove attractive to an acquiring company since the Balkans has a large number of septic infections. With the stock trading near its all-time low, TTOO could be poised to bounce in the near term as more investors and potential acquirers take notice of the company’s achievements.
TTOO Fundamentals
In response to the company exploring strategic alternatives and restructuring its business, TTOO stock fell 62%. Fearing that bankruptcy could be on the table, investors flocked from stock, and as a result, it plummeted to its current levels. That said, the market is likely overreacting to the situation at hand.
TTOO still has a lot of value as a company due to its specialization in sepsis diagnostic technology. It even monopolizes the market for septic fungal infections diagnostics and its products are in high demand domestically and abroad. Given this information, a bidding war may ensue over TTOO which could make its current PPS extremely attractive. Additionally, TTOO’s increasing reach and clientele list may also catalyze the stock, which is why entering TTOO at the current PPS may be opportune given that it is near its all-time low.
Combating Sepsis
A fight against sepsis is a fight against time. Sepsis-related mortalities increase by 8% for every hour treatment is delayed, which is why TTOO’s products are highly desirable. Its products provide a quick diagnosis in 3-5 hours to a wide variety of sepsis infections, which is why TTOO is likely to obtain more contracts and increase its reach. As is, TTOO stock could be undervalued at current levels thanks to the company’s incredible growth potential as it becomes more popular in the diagnostic field.
Septic Fungal Monopoly
One of the most notable devices in the field of diagnostics is TTOO’s T2Candida Panel. It is the only FDA-approved device that provides a diagnosis for septic fungal infections. T2Candida grants TTOO an unprecedented market advantage since it basically monopolizes the world of septic fungal diagnostics. This may likely increase sales as TTOO’s notoriety increases amidst its increasing contracts.
Magnum Opus
T2Bacteria panel is probably TTOO’s magnum opus. It has both FDA approval, and a CE mark making it clear for commerce in the US, EU, Switzerland, Iceland, Norway, and Lichtenstein. According to its latest Q1 report, TTOO’s revenues grew 11% QoQ mainly due to T2Bacteria panel’s sales increasing 110% domestically and 55% internationally.
TTOO’s magnum opus tests for bacterial infections are mostly associated with hospital-acquired infections, like E.coli, S. aureus, K. pneumoniae, and E. faecium. These infections are not treated in conventional antibacterial methods which is why quick diagnostic time is especially crucial for treatment. By decreasing mortalities due to hospital-acquired infections, hospitals save lives and cut expenses which is a notable incentive to purchase T2Bacteria panels.
Growth
Recently, TTOO has been enjoying increased sales due to the effectiveness of its diagnostic capabilities. TTOO’s most recent Q1 report revealed that it secured two multi-year pricing agreements with US healthcare systems consisting of 69 hospitals. Additionally, it executed two contracts for its 5 T2Dx s instruments, which run tests from 3 of its panels T2Candida , T2Bacteria panel, and its COVID panel.
Furthermore, TTOO is increasing its reach in the Balkans since sepsis infections are more prevalent in the Balkans according to multiple studies. As is, more and more healthcare institutions are relying on TTOO products which would likely lead to more contracts moving forward and a stock run due to an increase in notoriety.
TTOO stock is currently at rock bottom, however, it might be extremely undervalued. Its market cap is currently valued at $2 million which is a fraction of its cash balance which is pentuple the value. That basically means that TTOO stock has 5 times its market cap in cash on hand. Moreover, TTOO has a low float of 19 million which makes it more attractive for investors since it could run quicker on news. That said, a bidding war may be the most likely outcome for TTOO considering the value it would add to an acquiring company. In light of this, the current PPS could be a profitable entry for investors either for a TTOO bounce in the short term or in case a buyout materializes.
TTOO Financials
According to its Q1 report, TTOO’s assets decreased slightly from $34 million to $32 million Q1 2023 QoQ. With this in mind, current assets declined from $19 million to $18 million, however, cash on hand remained at $10 million. Meanwhile, liabilities increased from $73 million to $82 million QoQ which was mainly driven by current liabilities growing from $10 million to $17 million.
In terms of revenue, TTOO witnessed a steep YoY decline from $7 million to $2 million, however, revenues increased 11% QoQ. On the other hand, its operating costs decreased from $22 million to $15 million, which is due to a few delayed projects and cutting expenses. Despite that, its net loss increased slightly from $16 million to $17 million.
Technical Analysis
TTOO stock is in a neutral trend trading in a sideways channel between the support at $0.1040 and its resistance at $0.1697. Looking at the indicators, TTOO is trading below the 200, 50, and 21 MAs which is a bearish sign. However, the RSI is oversold at 17 and the MACD is curling bullishly.
As for the fundamentals, TTOO’s most recent catalyst was its Q1 earnings report which provided news of QoQ growth and two major agreements with large healthcare organizations. With the stock trading near its all-time low, bullish investors could find the current PPS an attractive entry point as TTOO could be poised to recover soon from its dip either for a dead cat bounce or if it secures a profitable buyout.
TTOO Forecast
The market likely overreacted to TTOO exploring strategic alternatives. It has an incredible market advantage due to the efficiency and speed of its diagnostic capabilities and its recently secured contracts in the US. Moreover, TTOO’s expansion into the Balkans could prove attractive to an acquiring company since the Balkans has a large number of septic infections. With the stock trading near its all-time low, TTOO could be poised to bounce in the near term as more investors and potential acquirers take notice of the company’s achievements.