We at Insider Financial have been covering all the hot coronavirus stocks and looking for the next hot runners for our subscribers. The new coronavirus stock that we’ve uncovered is T2 Biosystems Inc (NASDAQ:TTOO).
T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States and internationally. It provides T2 Magnetic Resonance platform that enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, and urine.
The company also offers T2Dx, a bench-top instrument for detecting pathogens associated with sepsis and Lyme disease, and other applications, as well as T2Candida panel that identifies the species of Candida, a fungal pathogen known to cause sepsis directly from whole blood. In addition, it is developing Candida Auris, a multi-drug resistant pathogen; T2Bacteria, a multiplex diagnostic panel that detects various bacterial pathogens associated with sepsis; and T2Lyme for the detection of various strains of Lyme disease-causing bacteria.
The company has collaboration agreements with Canon U.S. Life Sciences, Inc. to develop a diagnostic test panel to detect Lyme disease; and Allergan Sales, LLC to develop detection diagnostic test panel that adds one additional bacteria species to the existing T2Bacteria product candidate, as well as for testing drug resistance directly in whole blood. T2 Biosystems, Inc. was founded in 2006 and is headquartered in Lexington, Massachusetts.
The ongoing pandemic has accelerated the need for worldwide testing. The World Health Organization (WHO) has confirmed nearly 335,000 cases globally and the most recent reports indicate a death toll of more than 14,500. In the United States, more than 33,400 cases have been reported across all 50 states, with 400 deaths, according to the Center for Disease Control and Prevention (CDC).
While the majority of confirmed cases have been mild to moderate in severity, nearly 14% of patients have suffered from severe disease, exhibiting signs and symptoms that also meet SIRS criteria, putting those patients at high risk for sepsis. Additionally, 6.1% of patients were found to be critical, suffering from respiratory failure, septic shock, and/or multiple organ dysfunction/failure. These patients are treated in the ICU, where they are exposed to additional risk factors as well as countless antimicrobial agents.
T2 Biosystems’ role
NASDAQ:TTOO is a leader in the rapid detection of sepsis-causing pathogens. The company has just entered into a worldwide licensing agreement for a rapid COVID-19, novel coronavirus test developed by the Center of Discovery and Innovation at Hackensack Meridian Health, New Jersey’s largest and most comprehensive health network.
The licensed coronavirus assay has been used by healthcare professionals within the Hackensack Meridian Health network, under the U.S. Food and Drug Administration’s Emergency Use Authorization guidance, to test and treat patients suspected of having coronavirus. Under terms of the agreement, T2 Biosystems will adapt the coronavirus test to run on its T2Dx® Instrument, the same instrument used for the FDA-cleared T2Bacteria® and T2Candida® Panels. Hackensack Meridian Health will also adopt the T2Dx® Instrument and test panels within its Center of Discovery and Innovation.
T2 Biosystems will be able to provide a comprehensive assessment of patients suspected of primary or secondary infections associated with coronavirus, when timely results are most critical. These results will enable clinicians to rapidly quarantine and treat patients suspected of having coronavirus, effectively allocate critical resources, and in the case of a negative result, spare the patient unnecessary time in the hospital, thus reducing risks to additional exposure.
Besides the enormous potential for its coronavirus collaboration, NASDAQ:TTOO is a discount entry opportunity. Its current market cap is only $31 million while the company is sitting on $30 million in cash. Estimated first quarter 2020 total revenue is expected to be in the range of $2.2 million to $2.6 million, compared to $1.8 million in total revenue the first quarter of 2019. So basically at current levels, the current value of the business is zero. This is an extreme dislocation in the market and why NASDAQ:TTOO is extremely undervalued at current levels.
Currently trading with a market cap of just $31 million, NASDAQ:TTOO offers significant upside potential. The company is on top of the coronavirus pandemic and is a smart way for investors to play the outbreak. Look for a NASDAQ:TTOO break out to the upside much sooner than later. Good luck to all!
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Disclosure: We have NO position in NASDAQ:TTOO and have NOT been compensated for this article.