We alerted our subscribers about T2 Biosystems stock back in March before the big run from $.23 a share. Now many of our subscribers are asking what’s next after more than triple-digit gains. In looking at the chart below, there is a gap that needs to be closed at $2.50. If we close the gap and get above $3, it’s blue skies ahead. After all, it was just 2 years ago that TTOO stock was above $9.
There have been a number of short-sellers putting out false information that a reverse split was coming, just another reason why we HATE short-sellers. They put out false info with the goal of panicking weak longs into selling and driving the share price lower so that they can profit. Short-selling should be illegal, but there’s nothing we can do about it, except wait for the inevitable short-squeeze and send them home to their mother’s basement.
Management has already reported that there will be NO reverse split.
The shorts were also putting out false reports that T2 Biosystems stock will do an equity raise. Again, this is false because the company has an ATM facility in place. During the second quarter of 2020, the Company raised $8.4 million of net proceeds from the sale of 6.4 million shares through its ATM facility. Cash and cash equivalents as of June 30th are expected to be approximately $36.5 million.
U.S. COVID-19 Test
At the end of June, T2 Biosystems stock announced the completion of validation of its COVID-19 molecular diagnostic test, the T2SARS-CoV-2 Panel. The test was developed by T2 Biosystems under a license agreement with the Center of Discovery and Innovation at Hackensack Meridian Health and is being commercially distributed after validation meeting requirements for an Emergency Use Authorization (EUA) request to FDA.
The T2SARS-CoV-2 Panel is designed to detect SARS-CoV-2, the virus that is responsible for COVID-19 infections. The T2SARS-CoV-2 Panel provides sample-to-answer results in less than two hours, utilizing a nasopharyngeal swab sample. Clinical testing on known positive and negative patient samples showed a sensitivity of 95% and specificity of 100%. The T2SARS-CoV-2 Panel runs on the Company’s FDA-cleared T2Dx® Instrument, which is a fully-automated, random access system capable of performing seven tests simultaneously. According to John Sperzel, President and Chief Executive Officer of T2 Biosystems:
“We are proud to announce the U.S. launch of our molecular diagnostic test, the T2SARS-CoV-2 Panel, which has demonstrated excellent clinical performance. Adding this test to our existing sepsis-related portfolio illustrates our commitment to transformative diagnostics that improve the lives of patients. Given the susceptibility of critically-ill COVID-19 patients to develop bacterial or fungal co-infections and secondary infections that can lead to sepsis, we believe our platform can be used to identify acute COVID-19 infections and optimize outcomes for patients under intensive care.”
The T2Dx Instrument can also run the Company’s FDA-cleared T2Bacteria® Panel and T2Candida® Panel. These panels can detect sepsis-causing pathogens, both bacterial and fungal respectively, directly from whole blood in three to five hours, without the need to wait for a blood culture, which typically takes days to provide results and is not as sensitive. By providing quicker results, the panels enable clinicians to target therapy faster than ever for their patients suspected of sepsis, leading to better patient outcomes, improved antibiotic stewardship, and reductions in length of stay in the hospital.
FDA OKs Emergency Use
Yesterday, the FDA issued Emergency Use Authorization (EUA) for its COVID-19 molecular diagnostic test, the T2SARS-CoV-2™ Panel. John Sperzel, President and Chief Executive Officer of T2 Biosystems, said:
“We believe the Emergency Use Authorization for our COVID-19 molecular diagnostic test will lead to greater adoption of our technology by U.S. hospitals, and we are expanding manufacturing capacity to meet the anticipated demand. As critically-ill COVID-19 patients are susceptible to bacterial or fungal co-infections and secondary infections that can lead to sepsis, we believe our platform can be an effective tool to identify acute COVID-19 infections and optimize outcomes for hospitalized patients under intensive care.”
Reasons To Be Bullish On T2 Biosystems Stock
First, COVID-19 testing in the U.S. is a disaster. Bill Gates told Bloomberg that long lines at commercial labs and delays in obtaining test results have made the coronavirus pandemic in the U.S. worse. T2 Biosystems can solve this problem because its COVID-19 test, based on a nasopharyngeal swab, is one of the most sensitive and fastest in the market.
Second, The COVID panel should not be seen as the only money maker here. T2DX instrument, upcoming T2 Lyme panel, and T2 Candida Auris are on the carts. The recent deal with Hackensack CDI is a great way to enter into hospitals.
Three, the company is hiring and granting inducement awards to its employees.
Fourth, T2 Biosystems has a deal with BARDA and the DoD for the development of a biothreat panel.
Fifth, the company’s panels are faster than traditional blood culture methods saving hospitals thousands of dollars.
Sixth, Lyme panel is pending FDA approval, anticipated in Q3.
Seventh, the panels were made for sepsis detection, etc. COVID-19 is a new addition and will help boost sales. Hospital administrators are buying for COVID-19, but keeping it for the SEPSIS.
Eighth, T2 Biosystems has cash, cash equivalents and marketable securities as of July 31, 2020, of $69.1 million.
Ninth, 10% of the float is short. A short squeeze is coming, especially if a EUA hits the tape soon.
These are just nine reasons to be bullish on T2 Biosystems stock. We believe it’s going to be a big September for TTOO shareholders. New highs are coming in T2 Biosystems stock. It’s not a matter of if, but when.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:TTOO or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.