BG Medicine Reports Third Quarter 2012 Financial Results and Provides Business Update

BG Medicine Reports Third Quarter 2012 Financial Results and Provides Business
Update

WALTHAM, Mass., Nov. 13, 2012 (GLOBE NEWSWIRE) -- BG Medicine, Inc.
(Nasdaq:BGMD) today reported financial results for the third quarter ended
September 30, 2012 and provided a business update.

Total revenue increased to $0.6 million in the third quarter of 2012 compared
to $0.2 million in the same period in 2011. Product revenue from the BGM
Galectin-3^® test was $0.6 million in the third quarter of 2012, compared to
$0.1 million in the same period in 2011.

Operating expenses for the third quarter of 2012 increased by $2.1 million to
$7.2 million compared to 2011. This increase was driven by an increase in
research and development investment of $0.6 million related primarily to the
CardioSCORE™ test program and by an increase in sales and marketing expense of
$0.9 million to support commercialization of the BGM Galectin-3 test. General
and administrative expenses increased $0.4 million primarily due to personnel
related costs and public company related expenses.

Net loss for the quarter was $6.8 million compared with a loss of $4.9 million
in the third quarter of 2011.

Basic and diluted net loss per share attributable to common shareholders was
$(0.34) in the third quarter of 2012, compared with basic and diluted net
income per share of $(0.25) for the same period of 2011.

At September 30, 2012, the Company had cash and cash equivalents totaling
approximately $18.1 million compared to $24.4 million at December 31, 2011.

"Over the past quarter, we continued to make important progress with the BGM
Galectin-3 test by augmenting U.S. sales and marketing efforts and expanding
into other markets," said Eric Bouvier, president and chief executive officer
of BG Medicine."With our new corporate strategy and structure in place, we
look forward to maximizing control over the commercial execution of the BGM
Galectin-3 and CardioSCORE tests, which we believe will assist us to become a
leader in delivering novel cardiovascular diagnostics that address significant
unmet medical needs."

Financial Results for the Nine Months Ended September 30, 2012

Total revenue for the nine months ended September 30, 2012 was $1.7 million
compared to $1.3 million in the same period in 2011.Product revenue from the
BGM Galectin-3 test was $1.6 million in the nine months ended September 2012,
compared to $0.1 million in the same period in 2011.Service revenue from
collaborations decreased to $0.2 million in the nine months ended September
30, 2012 from $1.1 million in the corresponding period in 2011 as the Company
focused its efforts on the commercialization of the BGM Galectin-3 test.

Operating expenses for the first nine months of 2012 were $21.9 million
compared with operating expenses for the comparable period in 2011 of $14.0
million.This increase in operating expenses included higher research and
development investments of $1.7 million primarily related to the BGM
Galectin-3 and CardioSCORE test programs and an increase in sales and
marketing expenses of $3.7 million related primarily to commercialization of
the BGM Galectin-3 test in the U.S. and European markets.General and
administrative expenses increased $2.2 million, mainly from personnel related
costs and public company related expenses. 

Net loss was $20.9 million for the nine months ended September 30, 2012,
compared with $12.9 million during the same period of 2011.

Basic and diluted net loss per share attributable to common shareholders was
$(1.04) for the first nine months of 2012, compared with basic and diluted net
income per share of $(0.77) for the same period of 2011.

Cash used in operations was $16.5 million during the first nine months of 2012
compared to $11.2 million during the same period in 2011.In February 2012, BG
Medicine borrowed $10 million under a $15 million term loan facility.

BGM Galectin-3 Test and CardioSCORE Test Commercial Strategy Update

In a separate press release issued today, BG Medicine provided an update on
its new commercial strategy to speed the adoption of its cardiovascular
diagnostic tests.

As part of BG Medicine's new commercial strategy, the Company implemented a
strategic reorganization of its research and development department, away from
its previous focus on early stage discovery and toward a more
commercially-oriented role in support of studies designed to further
differentiate and support the BGM Galectin-3 and CardioSCORE tests in the
marketplace. As a result of this reorganization, 11 positions in early
discovery research have been eliminated, enabling the company to dedicate a
greater share of its research and development budget to commercial support and
market growth activities.As a result, the Company will record a fourth
quarter charge of approximately $150,000, with expected savings of up to $1.2
million in 2013.

Other Recent Business Updates

CardioSCORE Test

  *BG Medicine is continuing its dialogue with the FDA regarding the
    additional information requested by the FDA with respect to the original
    510(k) premarket notification submitted for the CardioSCORE^TM test

BGM Galectin-3 Test Commercial Progress and Expansion Into Additional
International Markets

  *In July 2012, Abbott Diagnostics, one of the Company's four diagnostic
    instrument manufacturer partners developing automated versions of the BGM
    Galectin-3 test, filed a 510(k) premarket notification to the FDA for
    regulatory clearance for the ARCHITECT® galectin-3 assay used with
    Abbott's fully automated ARCHITECT® immunochemistry instrument platform.
    This filing represents the first filing of an automated platform version
    of the BGM Galectin-3 test by one of BG Medicine's four partners.
  *An independent research study, "Galectin-3, a Marker of Cardiac Fibrosis,
    Predicts Incident Heart Failure in the Community" was published in the
    Journal of the American College of Cardiology (JACC) in September
    2012.The study demonstrated that men and women with baseline blood levels
    of galectin-3 in the highest quartile had heart failure incidence rates
    that were more than twice as high as those of all other study
    participants, over a ten- year follow-up period.The results published in
    JACC emphasized the significance of being able to detect factors that
    impact the identification and progression of heart failure.
  *In October 2012, BG Medicine entered into an agreement with Kindstar
    Diagnostics Co. Ltd., the largest esoteric diagnostic testing business in
    China, which will enable Kindstar to offer galectin-3 testing services for
    the management of heart failure patients in China.
  *At the American Heart Association (AHA) Scientific Sessions 2012 in Los
    Angeles earlier in November, the Company launched an aggressive marketing
    campaign focused on leveraging the role that the BGM Galectin-3 test can
    play in helping to reduce unplanned hospital readmissions.
  *Also at the AHA Scientific Sessions 2012, researchers from Northwestern
    University, the Massachusetts General Hospital, the University of Maryland
    School of Medicine, the University Medical Center of Groningen, and the
    Company presented results on the utility of galectin-3 testing for
    identifying heart failure patients at risk of unplanned near-term
    rehospitalization, in a presentation titled "Use of Galectin-3 to Create a
    Simplified Heart Failure Rehospitalization Risk Model."

BGM Galectin-3 Test CPT Code Status

  *In November 2012, BG Medicine announced that the Centers for Medicare and
    Medicaid Services (CMS), in the Final Determination for the Medicare
    Clinical Laboratory Fee Schedule for 2013, assigned a payment rate for the
    BGM Galectin-3 test under new, analyte-specific Current Procedural
    Terminology (CPT®) code 82777 effective January 1, 2013, and the payment
    rate will be crosswalked to the code under which the test is currently
    paid.

CardioSCORE Test Data Analyses Presented at American Heart Association (AHA)
Meeting

Results of retrospective analyses of the BioImage Study cohort were presented
during November 4th-7th at the American Heart Association (AHA) Scientific
Sessions 2012 in Los Angeles. These presentations resulted from research
sponsored by the company and included data on the CardioSCORE™ test.

In four scientific presentations, investigators from the Mt. Sinai School of
Medicine and the Baptist Hospital of Miami jointly presented the following
findings:

  *"BioImage Study: Value of Novel Biomarker Panel (CardioSCORE) in
    Predicting Major Adverse Cardiovascular Events among those with Absence of
    Coronary Calcification";
  *"BioImage Study: Novel Biomarker Panel (CardioSCORE) for the Prediction of
    First Major Cardiovascular Events across the Full Range of Framingham Risk
    Scores";
  *"BioImage Study: Combined Use of Novel Biomarker Panel (CardioSCORE) and
    Computed Tomography Coronary Calcium Scores in Predicting Major Adverse
    Cardiovascular Events" ; and
  *"BioImage Study: Reclassification and Discrimination by Novel Biomarker
    Panel (CardioSCORE), Coronary Calcium Score, Carotid Intima-Media
    Thickness & Plaque Burden in Asymptomatic Individuals."

Strengthening Senior Management and Commercial Team

  *To support the Company's continuing transition into a commercial
    organization, BG Medicine further strengthened its Senior Management Team
    by adding four strong members with previous commercial cardiovascular
    disease and diagnostics industry experience, including Bill Densel as
    CardioSCORE General Manager, Howard Rosen as Vice President, U.S. Sales
    and Marketing, Thomas Bendix Mortensen as Vice President, European Sales
    and Marketing, and Chuck Abdalian, as Chief Financial Officer.

Upcoming Milestones

BG Medicine anticipates the following upcoming milestones for the BGM
Galectin-3 test and the CardioSCORE test:

  *Abbott Diagnostics and bioMerieux, two of the Company's four diagnostic
    instrument manufacturer partners developing automated versions of the BGM
    Galectin-3 test, are expected to obtain CE Marks and launch their
    respective automated versions of the BGM Galectin-3 test in Europe.

Obtain a CE Mark for the CardioSCORE test in Europe.

Conference call and web cast

The Company will host a conference call and webcast today beginning at 8:00 am
Eastern Time.The conference call may be accessed by dialing (877) 845-1016
from the U.S. and Canada, or (708) 290-1155 from international locations.The
conference call will also be available via the Internet at
www.bg-medicine.com.

A replay of the call will be available approximately one hour following the
end of the call through November 16, 2012. The replay may be accessed by
dialing (855) 859-2056 within the U.S. and Canada or (404) 537-3406 from
international locations, conference ID #39743107.The call will be archived
and accessible on the Web site for approximately 30 days.

Listeners are encouraged to login at least 10 minutes prior to the start of
the scheduled presentation to register, download and install any necessary
audio software.

About BG Medicine

BG Medicine, Inc. (Nasdaq:BGMD) is a diagnostics company focused on the
development and commercialization of novel cardiovascular diagnostics to
address significant unmet medical needs, improve patient outcomes and reduce
healthcare costs. The Company's first commercialized product, the BGM
Galectin-3^® test for use in patients with chronic heart failure, is available
in the United States and Europe. BG Medicine is also developing the
CardioSCORE^TM test, a blood test designed to aid in the assessment of an
individual's risk for near-term major cardiovascular events.For additional
information about BG Medicine, heart failure and galectin-3 testing, please
visit www.bg-medicine.comand www.galectin-3.com.

The BG Medicine Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10352.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including, but not
limited to, statements regarding: our beliefs that our new commercial strategy
will place us in a much stronger position to drive our own commercial success;
our ability to implement our new commercial strategy and the effectiveness of
our implementation; our expectation that we will open our own CLIA lab in the
first half of 2013; our expectations that having our own CLIA lab will further
strengthen our ability to strengthen sales of our diagnostic tests; our belief
that identifying high-risk patients through galectin-3 testing is a
potentially valuable and cost-effective tool in a hospital's strategy to
reduce unplanned 30-day readmissions; our expectations that our hospital
readmissions initiative will accelerate the sales ramp-up and adoption of
galectin-3 testing; our expectations regarding the timing of the launch of
automated versions of our galectin-3 test in Europe; our expectations for our
business operations and outlook; our beliefs regarding the importance of our
galectin-3 test to heart failure patients; our intention to proceed with the
commercial offering of the CardioSCORE test; our intention to launch the
CardioSCORE test initially in Europe through one or more partners; our belief
in the significant potential of CardioSCORE to provide valuable information
about an individual's risk of experiencing a near-term major cardiovascular
event; and our expectations regarding the impact of the BioImage Study data on
potential sales and marketing of our CardioSCORE test. These statements are
neither promises nor guarantees of future performance, and are subject to a
variety of risks and uncertainties, many of which are beyond the Company's
control, which could cause actual results to differ materially from those
contemplated in these forward-looking statements. In particular, the risks and
uncertainties include, among other things: our ability to transition into a
commercial organization and generate sufficient revenue to sustain our
business; our estimates of future performance, including the expected timing
of the launch of our products; the timing, costs and other limitations
involved in obtaining regulatory clearance or approval for any of our product
candidates; our ability to successfully develop, receive regulatory clearance
or approval, commercialize and achieve market acceptance for any of our
products and product candidates; our reliance on third parties to develop or
distribute our product candidates and products, including our ability to enter
into collaboration agreements with respect to our product candidates and the
performance of our collaborative partners under such agreements; our ability
to protect our intellectual property and operate our business without
infringing upon the intellectual property rights of others; our estimates
regarding anticipated operating losses, future revenue, expenses, capital
requirements and our need for additional financing; and other factors
discussed under the heading "Risk Factors" contained in Item 1A in our Annual
Report on Form 10-K for the year ended December 31, 2011, filed with the
Securities and Exchange Commission, as well as any updates to those risk
factors filed from time to time in our Quarterly Reports on Form 10-Q or
Current Reports on Form 8-K. All information in this press release is as of
the date of the release, and BG Medicine undertakes no duty to update this
information unless required by law.

BG Medicine, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
                                                             
                     Three Months Ended September Nine Months Ended September
                      30,                          30,
                     2012           2011          2012          2011
                     (in thousands, except share and per share data)
                     (unaudited)
                                                             
Revenue:                                                      
Product revenue       $610         $87         $1,592      $144
Service revenue       31            92           151          1,111
                                                             
Total revenue         641           179          1,743        1,255
                                                             
Operating Expenses (1):                                        
Cost of product       209           31           552          48
revenue
Cost of service       31            53           151          380
revenue
Research and          2,549         1,936        7,662        6,010
development
Selling, general and  4,388         3,072        13,501       7,567
administrative
                                                             
Total operating       7,177         5,092        21,866       14,005
expenses
                                                             
Loss from operations  (6,536)       (4,913)      (20,123)     (12,750)
                                                             
Interest income       9             10           17           25
Interest expense      (302)         --          (779)        (90)
Other income          15            22           15           (33)
(expense)
                                                             
Net loss              (6,814)       (4,881)      (20,870)     (12,848)
                                                             
Accretion of
redeemable            --           --          --          (118)
convertible preferred
stock
Net loss attributable
to common             $(6,814)     $(4,881)    $(20,870)   $(12,966)
stockholders
Net loss attributable
to common
stockholders per      $(0.34)      $(0.25)     $(1.04)     $(0.77)
share - basic and
diluted
Weighted-average
common shares
outstanding used in   20,320,190    19,344,905   20,118,768   16,925,693
computingper share
amounts - basic and
diluted
                                                             
(1) Included in operating expenses for the three months ended September 30,
2012 were non-cash charges of $724,000 including $620,000 of stock-based
compensation expense and $65,000 of depreciation and amortization expenses,
compared with non-cash charges for the same period in 2011 of $637,000
including $560,000 of stock-based compensation expense and $97,000 of
depreciation and amortization expenses.
                                                             
Included in operating expenses for the nine months ended September 30, 2012
were non-cash charges of $2.2 million, including $1.9 million of stock-based
compensation expense and $210,000 of depreciation and amortization expenses,
compared with non-cash charges for the same period in 2011 of $1.7 million,
including $1.3 million of stock-based compensation expense and $330,000 of
depreciation and amortization expenses.



BG Medicine, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
                                                         
                                     As of                As of
                                    September 30,         December 31,
                                     2012                 2011
                                    (in thousands)
                                    (unaudited)
Assets                                                    
Current assets                                            
Cash and cash equivalents            $17,579             $23,874
Restricted cash                      473                  565
Accounts receivable                  147                  115
Inventory                            452                  212
Prepaid expenses and other current   749                  550
assets
                                                         
Total current assets                 19,400               25,316
                                                         
Property and equipment, net          239                  301
Intangible assets, net               393                  456
Deposits and other assets            116                  37
                                                         
Total assets                         $20,148             $26,110
                                                         
Liabilities and Stockholders' Equity                       
Current liabilities                                       
Term loan, current portion           $2,237              $--
Accounts payable                     1,002                487
Accrued expenses                     5,394                3,348
Deferred revenue and customer        1,180                1,368
deposits
                                                         
Total current liabilities            9,813                5,203
                                                         
Term loan, net of current portion    7,593                --
Warrant liability                    10                   15
Stockholders' equity                 2,732                20,892
                                                         
Total liabilities and stockholders'  $20,148             $26,110
equity
                                                         
The condensed consolidated balance sheet at December 31, 2011 has been derived
from the audited consolidated financial statements at the date included in the
Company's Form 10-K for the fiscal year ended December 31, 2011.




BG Medicine, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
                                                        
                                    Nine Months Ended September 30,
                                    2012                 2011
                                    (in thousands)
                                    (unaudited)
                                                        
Net cash flows from operating        (16,521)            (11,196)
activities
                                                        
Net cash flows from investing        (85)                (14,313)
activities
                                                        
Net cash flows from financing        10,311              36,185
activities (1)
                                                        
Net (decrease) increase in cash and  (6,295)             10,676
cash equivalents
                                                        
Cash and cash equivalents, beginning 23,874              2,425
of period
                                                        
Cash and cash equivalents, end of    $17,579            $13,101
period
                                                        
(1) For the nine months ended September 30, 2012, cash flows provided by
financing activites include proceeds from the $10.0 million term loan.For the
nine months ended September 30, 2011, cash flows provided by financing
activities include net proceeds of $36.2 million from the initital public
offering.

CONTACT: Charles H. Abdalian, Jr.
         EVP & Chief Financial Officer
         (781) 890-1199

BG Medicine Inc. logo
 
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