Shares in T2 Biosystems Inc (NASDAQ:TTOO) skyrocketed in New York on Wednesday after the diagnostics group struck a worldwide licensing agreement for a new coronavirus test which provided answers quickly.
Under the terms of the deal, the firm will adopt the licensed coronavirus assay, which was developed by New Jersey's Center of Discovery and Innovation at Hackensack Meridian Health, to run on the company's T2Dx Instrument.
T2 Biosystems stock soared 125% to $0.88 each in morning trade on Wednesday, before easing back to $0.74, up 88.5%.
The ongoing disease crisis has accelerated the need for worldwide testing, with nearly 335,000 cases of coronavirus globally and a death toll of more than 14,500.
In the USA, more than 33,400 cases have been reported across all 50 states, with 400 deaths, according to the Centers for Disease Control and Prevention (CDC).
T2 Biosystems said that by adding this complementary test to the T2Dx platform, the firm 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.
"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,” said John Sperzel, the CEO of T2 Biosystems.
"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."
Hackensack Meridian Health is a not-for-profit health care organization — the largest, most comprehensive and integrated health care network in New Jersey.
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