T2 Biosystems, Inc. (TTOO), an in vitro diagnostics company, has soared 18.63% in aftermarket trading session. As a result, TTOO stock was trading at $0.98 at the time of the writing. The increase has come after the company announced distribution agreements in Asia-Pacific markets. On Thursday, TTOO closed the day at $0.83 after declining 1.65% during regular trading hours.
TTOO distribution agreements
On Thursday, TTOO announced the execution of a territory exclusive distribution agreement in the regions of Singapore and South Korea. The company said that under the terms of the agreement, it would sell T2Dx® Instruments, along with T2Bacteria®, T2Candida® and T2Resistance® Panels through the distributors. The execution of agreements makes T2 Biosystems presence felt in the region of Asia-Pacific. As per Asia Pacific Sepsis Alliance, the national sepsis incidence in the region ranges from 120 up to 1,600 per 100,000. As a result of the agreement, the company and newly partnered distributors are collaborating with the health authorities in both of the countries to gain regulatory approvals and to offer patients the highest quality of sepsis available. That in turn would begin from the purchase of two T2Dx Instruments that were shipped to Singapore in September as well as purchase order of four T2Dx Instruments which have to be shipped to South Korea by the end of the year.
Q2 2021 financial highlights
On 5th August, TTOO reported the financial results for the second quarter of the fiscal year 2021 which ended on 30th June 2021. The company had cash and cash equivalents of $32.70 on 30th June. The total current assets at the time were $63.85 million while the total current liabilities were $9.34 million. The company generated total revenue of $6.69 million against $2.55 million for the same period of 2020. The total costs and expenses for the period were $17.47 million against $11.39 million for the same period of 2020. The company suffered a loss of $10.78 million from operations against $8.83 million for the same period of 2020. The net loss for the three months was $12.47 million against $10.68 million for the same period of 2020. The net loss per basic and diluted share for the period was $0.08 against $0.09 for the same period of 2020.
Future for TTOO
Statistics reveal a grim picture for TTOO. The stock has declined more than 20% during the last three months. But analysts believe that the company’s EPS could increase more than 70% during the current year, based on the business expansion plans, which have already started imparting influence on TTOO stock.
