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T2 Biosystems Shares Nearly Double on Worldwide COVID-19 Testing License Deal

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Shares of T2 Biosystems Inc. traded 90% higher after the company reported that a new COVID-19 assay licensed from Hackensack Meridian Health's Center for Discovery and Innovation will be adapted to run on its FDA-cleared T2Dx® Instrument.

Diagnostics company T2 BioSystems Inc. (TTOO:NASDAQ), which is focused on the rapid detection of sepsis-causing pathogens, yesterday announced that it has "entered into a worldwide licensing agreement for a rapid COVID-19, novel coronavirus test developed by the Center of Discovery and Innovation (CDI) at Hackensack Meridian Health (HMH), New Jersey's largest and most comprehensive health network."

The company stated that "the licensed coronavirus assay has been used by healthcare professionals within the HMH network, under the U.S. Food and Drug Administration's Emergency Use Authorization guidance, to test and treat patients suspected of having coronavirus."

The firm indicated that under terms of the agreement "it will adapt the coronavirus test to run on its T2Dx® Instrument, the same instrument used for the FDA-cleared T2Bacteria® and T2Candida® Panels." In addition, it was noted that HMH will adopt the T2Dx® Instrument and test panels at the CDI.

The company's President and CEO John Sperzel commented, "This agreement combines our FDA-cleared T2Dx platform with our joint scientific expertise to benefit patients at risk for both primary coronavirus infections, as well as associated secondary infections that may lead to sepsis...Data from prior flu pandemics indicated bacterial co-infection rates as high as 29%, and sepsis rates above 30% among patients admitted to hospital intensive care units. The ability to detect coronavirus and associated secondary bacterial or fungal infections that may lead to sepsis, without the need to wait days for a diagnostic result, allows clinicians to achieve targeted therapy faster, and can lead to reduced length of stay in the intensive care unit, freeing up beds for incoming patients."

The firm stated that "by adding this complementary test to the T2Dx platform, capable of detecting SARS-CoV-2 (novel coronavirus), 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."

Robert C. Garrett, FACHE, CEO of Hackensack Meridian Health, remarked, "Our scientists at the Center for Discovery and Innovation have given our health network a crucial tool to treat patients in real-time...We are pleased to license the technology to T2 Biosystems and also adopt the T2Dx platform."

Chief Scientific Officer and SVP of the CDI David S. Perlin, Ph.D., added, "We developed a highly sensitive and accurate coronavirus test that provides rapid, definitive results by combining the best elements found in the coronavirus tests developed by CDC and WHO...The T2Dx® Instrument is the perfect vehicle to expand our innovation to customers around worldwide."

T2 Biosystems is based in Lexington, Mass., and is engaged in the rapid detection of sepsis-causing pathogens, biomarkers and other abnormalities. The firm is focused on improving patient care and reducing the medical care cost by helping clinicians effectively treat patients quicker than before. The company's products which are powered by the proprietary T2 Magnetic Resonance (T2MR®) technology include the T2Dx® Instrument, T2Candida® Panel, the T2Bacteria® Panel and the T2ResistanceTM Panel.

HMH is a large non-profit health care group that offers a complete range of medical services, research and life-enhancing care. The organization has 17 hospitals, a behavioral health hospital and two rehabilitation hospitals.

The CDI is a member of HMH group, which aims to translate current innovations in science in order to improve clinical outcomes for patients with cancer, infectious diseases and other life-threatening and disabling conditions.

T2 Biosystems began the day with a market capitalization of around $39.3 million with approximately 100.8 million shares outstanding and a short interest of about 5.0%. TTOO shares opened more than 125% higher today at $0.893 (+$0.5032, +129.09%) over yesterday's $0.3898 closing price. The stock has traded today between $0.6722 and $0.99 per share and is currently trading at $0.76 (+$0.38, +96.38%).

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