What’s happening with T2 Biosystems (TTOO) stock today?

T2 biosystems (NASDAQ:TTOO) shares rose 23% overnight after the announcement distribution agreement covering the Baltic. T2 manufactures test kits to detect sepsis.

Exclusive agreement it covers the three former Baltic states of the old Soviet Union, where sepsis is more common than in the rest of Europe. T2 says its tests can quickly detect sepsistherefore, therapy is started earlier, reducing both costs and death.

Even with the latest boost, T2 opens on September 23 with a market cap under $40 million. It had sales of $28 million in 2021, but lost $49 million, 31 cents per share. The overnight gain lifted the stock price to just 12 cents/share.

What is the story?

Sepsis is a life-threatening overreaction to infection that affects 1.7 million Americans each year, kills about 20%, and is responsible for one in three hospital deaths.

While T2’s home page has many large hospital customers, most have found that its tests do not add clinical value. They do not measure antibiotic resistance or change clinical practice. However, the company continues to introduce new versions of its tests and wants to test other pathogens, such as Lyme disease.

While T2 technology fills key niches in the market, analysts say it is failed to retrieve from its intellectual property. Stock only recently regained compliance with Nasdaq listing requirements. He now has until November 1 to hit the price $1/share. It was recently moved from the Nasdaq Global Market to the Capital Market.

Founded in 2006, T2 is one of several small biotech companies near Boston’s I-95 corridor that, as Road 128 launched the minicomputer revolution in the 1970s. Most of them stem from research done at Harvard or MIT, funded by the profits of past industry winners.

TTOO Stock: What Happens Next?

The distribution deal doesn’t guarantee sales, and T2 probably won’t get anywhere near $1/share with no hope of profit and growth.

The most likely outcomes are a sale, bankruptcy or a reverse stock split.

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As of the date of publication, Dana Blankenhorn held no position with any of the companies mentioned in this article. The opinions expressed in this article are those of the writer and are the subject of InvestorPlace.com Publishing Guidelines.