T2 Biosystems shares plummeted 47% to $9.19 on forecasts of lower revenue in the third-quarter.
The stock is down 93% on the year so far. Trading was paused for volatility twice Friday before resuming at 9:55 a.m. ET.
The proprietary technology platform developer said preliminary third-quarter revenue is around $1.5 million, a 60% decline from a year earlier. It attributed the decline primarily to a $1 million reduction in revenue from Biomedical Advanced Research and Development Authority, part of its collaboration with the U.S. government.
Sepsis test panel revenue in the quarter declined 31% to $1.1 million from the year-ago period due to a backorder.
For the fourth quarter, T2 Biosystems said it expects sepsis and related product revenue of $2.4 million, a sequential increase from the third quarter. As a result of the sepsis test backorder, the company now expects full-year sepsis and related product revenue of $7.5 million, a decline of 10% from 2022.
Chief Executive John Sperzel said the company has taken aggressive measures to address the sepsis test backorder and improved its balance sheet by raising capital and reducing debt.
Full third-quarter results will be released in November.