In a May 31 research note, analyst Ram Selvaraju reported that H.C. Wainwright & Co. lowered its target price on T2 BioSystems Inc. (TTOO:NASDAQ) to $10 per share from $11 after adjusting its model on the company to reflect its current share price, which is around $1.68 per share.
Selvaraju explained that H.C. Wainwright's estimated market value of T2 Biosystems is still $557 million, but given where its stock is trading, the company may need to issue more shares to raise the capital it will need to fund operations.
In other news, T2 Biosystems' management, in a recent conference call, reiterated its 2019 guidance of securing 70–80 contracts for its T2Dx diagnostic system and generating twice as much revenue as last year, Selvaraju indicated.
"We continue to believe that T2Bacteria would be the main driver to help the company achieve its financial goals in 2019," added Selvaraju. T2Bacteria is a test, approved by the U.S. Food and Drug Administration, to identify, from whole blood, sepsis-causing bacteria. The panel covers 90% of the ESKAPE pathogens commonly resistant to broad-spectrum antibiotics: Enterococcus faecium, Staphylococcus aureus, Klebsiella pneumoniae, Acinetobacter baumannii, Pseudomonas aeruginosa and Enterobacter species.
Also noteworthy, earlier this month the Annals of Internal Medicine published the results from the pivotal trial on the panel, which showed that "T2Bacteria's accurate diagnosis of bloodstream infections is much faster than blood cultures," noted Selvaraju.
Specifically, with T2Bacteria, it took 3.61 to 7.7 hours to identify the species present, depending on the number of samples tested, versus 71.7 hours with a blood culture. With this faster diagnosis, patients could get antibiotic treatment sooner, "thereby improving clinical outcome and lowering hospital costs," Selvaraju pointed out.
H.C. Wainwright & Co. has a Buy rating on T2 Biosystems.
[NLINSERT]Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from H.C. Wainwright & Co., T2 Biosystems Inc., Target Price Revision, May 31, 2019
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
I, Raghuram Selvaraju, Ph.D. and Yi Chen, Ph.D. CFA, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst's household has a financial interest in the securities of T2 Biosystems, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of April 30, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of T2 Biosystems, Inc.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from T2 Biosystems, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in T2 Biosystems, Inc. as of the date of this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
