T2 Biosystems sheds 28% on restructuring plans and Q1 miss
Baris-Ozer
- T2 Biosystems (NASDAQ:TTOO) lost ~28% in the morning hours Tuesday after the diagnostics company announced lower-than-expected Q1 2023 financials and disclosed a restructuring program alongside a plan to seek strategic alternatives.
- The Lexington, Massachusetts-based biotech said that nearly 30% of its staff left the company last week under the restructuring initiative, which it has put in place to lower the annual operating costs and ready the firm for strategic alternatives.
- An advisory firm assists the company in exploring all available strategic alternatives, which can include a potential acquisition, merger, or sale of assets.
- With its Q1 2023 financials, T2 Biosystems (TTOO) reported $2.1M revenue for the quarter, a ~71% YoY rise, and its net loss stood at $18.0M, marking a ~9% YoY rise while cash and cash equivalents totaled $10.1M, largely unchanged from 2022 year-end.
- While reaffirming its 2023 guidance, T2 Biosystems (TTOO) said that the layoffs are expected to significantly lower its cash usage in the quarters ahead.