Shares of T2 Biosystems Inc. (NSDQ:TTOO) jumped yesterday on news that the FDA approved 2 new products designed to detect invasive fungal infections in a matter of hours, with other FDA-approved detection systems requiring multiple days.
The company’s T2Candida and T2Dx products use MR technology to detect pathogens in blood specimens that can lead to sepsis, a complication that occurs when the body releases chemicals into the bloodstream to fight an infection that then trigger inflammation that can damage organs and bring on shock.
The news sent shares of T2, which took itself public last month in a $57 million IPO, up 9.6% to $18.55 apiece at yesterday’s close. TTOO stock was trading at $18.32 per share as of about 9:50 a.m. Eastern today, down 1.2%.
"The FDA’s market authorization of T2Candida and T2Dx mark a significant milestone for our company, but more importantly for the more than 800,000 U.S. physicians across the country in need of faster diagnostic results," CEO John McDonough said in prepared remarks. "The diagnostic capabilities offered by these products can support both improved clinical outcomes as well as strong health economic benefits."
According to T2, standard detection systems require anywhere from 2 to 5 days to detect pathogens. Sepsis is among the leading causes of death in U.S. hospitals and is the most expensive hospital-treated condition here, with costs to the healthcare system exceeding $20 billion each year, according to U.S. Department of Health and Human Services figures cited by T2.
In the 2nd quarter, T2 recorded a $9.2 million loss, leaving it with approximately $16.1 million in cash and equivalents.