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BG Medicine Reports Fourth Quarter and Full Year 2012 Financial Results and Provides 2013 Outlook



BG Medicine Reports Fourth Quarter and Full Year 2012 Financial Results and
Provides 2013 Outlook

Fourth Quarter and Full Year BGM Galectin-3 Test Sales Grow Significantly

  * Q4 Revenues nearly triple from Q4 2011
  * Product margins increase 10% from Q4 2011
  * January 2013 $12.8 million public offering supplements Q4 2012 cash of
    $13.2 million
  * bioMérieux obtains CE mark for VIDAS Galectin-3 test
  * CardioSCORE CE mark obtained

WALTHAM, Mass., March 13, 2013 (GLOBE NEWSWIRE) -- BG Medicine, Inc.
(Nasdaq:BGMD), a diagnostics company focused on the development and
commercialization of novel cardiovascular tests, today reported financial
results for the fourth quarter and full year ended December 31, 2012 and
provided an update on its progress in expanding the commercial adoption of its
innovative diagnostic tests for cardiovascular disease.

Product revenue from the BGM Galectin-3® test was $1.0 million in the fourth
quarter of 2012, compared to $0.3 million in the same period in 2011. Total
revenues increased to $1.1 million in the fourth quarter of 2012 compared to
$0.4 million in the same period in 2011. Product margin was 70% in the fourth
quarter of 2012, up from 60% in the fourth quarter of 2011.

Net loss for the quarter was $2.9 million compared with a loss of $4.7 million
in the fourth quarter of 2011. The $1.8 million year over year decrease
results primarily from an adjustment of accrued R&D expenses.

Basic and diluted net loss per share attributable to common shareholders was
$0.14 in the fourth quarter of 2012, compared with basic and diluted net loss
per share of $0.23 for the same period of 2011.

At December 31, 2012, the Company had cash and cash equivalents totaling
approximately $13.2 million. In January 2013, the Company closed a public
offering of 6,900,000 shares of common stock, netting proceeds of
approximately $12.8 million, after offering expenses and underwriting
discounts and also entered into a $12 million common stock purchase agreement
with Aspire Capital Fund, LLC.

"We are pleased with the success we had in the fourth quarter of 2012 in
re-aligning our strategy and commercial organization to better drive sales of
the BGM Galectin-3 test as a critical tool in in the assessment of heart
failure disease," said Eric Bouvier, president and chief executive officer of
BG Medicine. "With a number of important growth drivers in place for 2013, we
are well-positioned to build on this growth in the months and years ahead."

Financial Results for the Full Year Ended December 31, 2012

Product revenue from the BGM Galectin-3 test was $2.6 million for the full
year ended December 2012, compared to $0.5 million in the same period in 2011.
Service revenue from collaborations decreased to $0.2 million for the full
year ended December 31, 2012 from $1.2 million in the corresponding period in
2011 as the HRP initiative nears completion. Total revenues for the full year
ended December 31, 2012 was $2.8 million compared to $1.6 million in the same
period in 2011. Product margin was 67% in 2012, up from 62% in 2011.

Net loss was $23.8 million for the full year ended December 31, 2012, compared
with $17.6 million during the same period of 2011. The $6.2 million year over
year increase results primarily from an increase in sales and marketing
expenses, due to market development and commercialization activities for the
BGM Galectin-3 test in the U.S. and European markets and from an increase in
general and administrative expenses, mainly from personnel related costs,
legal and regulatory expenses and public company related expenses. 

Basic and diluted net loss per share attributable to common shareholders was
$1.18 for 2012, compared with basic and diluted net loss per share of $1.00
for 2011.

Cash used in operations was $21.3 million during 2012 compared to $15.0
million during 2011. 

2013 Outlook

"The substantial progress we made in 2012 has positioned us to drive
commercial growth in 2013 and beyond," Bouvier continued. "Galectin-3 test
sales are expected to benefit due to the increase in the number of specialized
and regional lab providers with which we have partnered from three to seven,
the US sales force targeting customers focused on reducing hospital
readmissions in light of recently imposed Medicare penalties and the
anticipated continued commercial progress of our IVD partners, bioMerieux and
Abbott, in Europe. We also expect to launch the CardioSCORE test in Europe
during the first half of 2013 through specialty lab partners, and expect to
complete the medical review of data from the BioImage study, which will then
guide our regulatory and commercial strategy for CardioSCORE in the U.S."

Recent Business Highlights

CardioSCORE Test

  * In December 2012, BG obtained a CE Mark for the CardioSCORE test, enabling
    the Company to market the test in Europe and other countries that
    recognize the CE Mark. The company expects to begin commercial activities
    in Europe for CardioSCORE in the first quarter of this year.

BGM Galectin-3 Test

  * In January 2013, bioMérieux obtained a CE Mark in Europe for an automated
    version of the BGM Galectin-3 test and launched its VIDAS® Gal-3 test in
    Europe and in certain other territories that recognize the CE Mark.
    bioMérieux is offering the VIDAS® Gal-3 test through its VIDAS®
    immunoassay platform, which is comprised of a broad CE-Marked installed
    base of instruments throughout Europe and in other countries that
    recognize CE Mark.
     
  * In February 2013, we announced that two studies, comprising over 3,300
    subjects, were published in two leading clinical journals that affirmed
    the clinical significance of repeat testing of galectin-3 in blood using
    the BGM Galectin-3 assay for patients with chronic heart failure. The
    results published reveal that changes in galectin-3 levels, over a time
    frame of 3 to 6 months are of significant clinical importance when they
    occur. These consistent findings in over 3,300 subjects across three
    distinct cohorts suggest that periodic testing of galectin-3 in patients
    with heart failure is useful for identifying patients in whom disease
    progression is advancing and whose clinical risk profile is changing.  
    Full details are available here:
    http://investor.bg-medicine.com/releasedetail.cfm?ReleaseID=745705.
     
  * As previously announced, the BGM Galectin-3 test obtained an
    analyte-specific CPT code, 82777, in late 2012 for Medicare reimbursement
    purposes.  In addition, we believe several managed care providers, which
    cover 75% of the US population, are also reimbursing for the BGM
    Galectin-3 test.  We also believe these managed care providers and
    Medicare collectively represent approximately 140 million covered lives.
     
  * Two 510(k) filings were withdrawn or expired prior to FDA's response
    deadline because complete responses could not be submitted in time to meet
    the FDA's deadline dates:

    * Fujirebio, who is developing the ARCHITECT Galectin-3 test (an automated
      version of the BGM Galectin-3 test) for Abbott withdrew its 510(k). A
      new 510(k) application is expected to be filed in the second half of
      2013 that will address the FDA's questions and comments.
    * BG allowed its 510(k) for the BGM Galectin-3 test for the assessment of
      risk of developing new-onset heart failure (second indication for the
      BGM Galetin-3 test) to expire. The Company is currently evaluating
      options for submitting a new 510(k) that will address the FDA's
      questions and comments.

Conference call and web cast

The Company will host a conference call and webcast today beginning at 8:30 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 March 15, 2013. 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 #15127201. 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 tests to address
significant unmet medical needs, improve patient outcomes and reduce
healthcare costs. The Company has two products: the BGM Galectin-3® test for
use in patients with chronic heart failure is available in the United States
and Europe; and the CardioSCORE™ test for the risk prediction of major
cardiovascular events will be launched in Europe in the first half of 2013.
For additional information about BG Medicine, heart failure and galectin-3
testing, please visit www.bg-medicine.com and 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 progress toward the commercialization of
our products and expectations regarding our revised commercial strategy; our
progress in preparing for the launch of the automated versions of our
galectin-3 test by our partners; our expectations regarding the timing of the
launch of automated versions for our galectin-3 test in Europe; our
expectations regarding our automated platform partners plans and timing for
filing 510(k)'s for their automated versions of the galectin-3 test; our plans
regarding a label extension and second indication for our galectin-3 test; our
expectations for our business operations and outlook; our beliefs regarding
the importance of our galectin-3 test to heart failure patients; and our
expectations regarding the timing of the launch of CardioSCORE in
Europe. Existing and prospective investors are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. The Company undertakes no obligation to update or revise the
information contained in this press release, whether as a result of new
information, future events or circumstances or otherwise. These
forward-looking 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
history of operating losses; our ability to generate sufficient product
revenue to sustain our commercial diagnostics business; our estimates of
future performance, including the expected timing of the launch of our
products; our expectations regarding the impact on our galectin-3 test sales
as a result of focusing our sales efforts on the hospital readmissions problem
and associated penalties facing our clients; our ability to conduct the
clinical studies required for regulatory clearance or approval and to
demonstrate the clinical benefits and cost-effectiveness to support commercial
acceptance of our products; the timing, costs and other limitations involved
in obtaining regulatory clearance or approval for any of our products; the
potential benefits of our products over current medical practices or other
diagnostics; our ability to successfully develop, receive regulatory clearance
or approval, commercialize and achieve market acceptance for any of our
products; willingness of third-party payors to reimburse for the cost of our
tests at prices that allow us to generate sufficient profit margins; our
reliance on third parties to develop and distribute our products, including
our ability to enter into collaboration agreements with respect to our
products 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;
the expected timing, progress or success of our research and development and
commercialization efforts; our ability to successfully obtain sufficient
supplies of samples for our biomarker discovery and development efforts; our
estimates regarding anticipated operating losses, future revenue, expenses,
capital requirements and our needs for additional financing; our ability to
recruit, hire and retain qualified personnel; and the limited public float and
trading volume for our common stock and volatility in our stock price; 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, and as
amended and restated in our Final Prospectus Supplement dated January 25,
2013, each filed with the Securities and Exchange Commission. 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
Consolidated Statements of Operations
                                                                   
                         Three Months Ended          Year Ended
                         December 31,                December 31,
                         2012          2011          2012         2011
                         (in thousands, except share and per share data)
                         (unaudited)
                                                                   
Revenues:                                                          
Product revenue           $ 978         $ 307         $ 2,570      $ 451
Service revenue           94            72            245          1,183
                                                                   
Total revenues            1,072         379           2,815        1,634
                                                                   
Costs and operating                                                
Expenses (1):
Cost of product revenue   289           124           841          172
Cost of service revenue   (35)          67            116          447
Research and              (80)          1,988         7,582        7,998
development 
Sales and marketing       2,063         1,605         9,451        5,293
General and               1,440         1,330         7,553        5,209
administrative
                                                                   
Total costs and           3,677         5,114         25,543       19,119
operating expenses
                                                                   
Loss from operations      (2,605)       (4,735)       (22,728)     (17,485)
                                                                   
Interest income           5             6             22           31
Interest expense          (304)         1             (1,083)      (89)
Other income (expense)    5             (6)           20           (39)
                                                                   
Net loss                  (2,899)       (4,734)       (23,769)     (17,582)
                                                                   
Accretion of redeemable
convertible preferred     --            --            --           (118)
stock
                                                                   
Net loss attributable to  $ (2,899)     $ (4,734)     $ (23,769)   $ (17,700)
common stockholders
                                                                   
Net loss attributable to
common stockholders per   $ (0.14)      $ (0.23)      $ (1.18)     $ (1.00)
share - basic and
diluted
                                                                   
Weighted-average common
shares outstanding used
in computing per share    20,508,587    19,721,852    20,215,956   17,638,139
amounts - basic and
diluted
                                                                   
                                                                   
(1) Included in operating expenses for the three months ended December 31,
2012 were reversals of accrued expenses totaling $2.4 million, comprised of
R&D expenses of $1.5 million and bonus expense of $800,000. These adjustments
were partially offset by $700,000 of severance expenses.
                                                                   
Also included in operating expense for the three months ended December 31,
2012 were non-cash charges of $569,000 including $457,000 of stock-based
compensation expense and $63,000 of depreciation and amortization expenses,
compared with non-cash charges for the same period in 2011 of $672,000
including $578,000 of stock-based compensation expense and $90,000 of
depreciation and amortization expenses.
                                                                   
Also included in operating expenses for the full year ended December 31, 2012
were non-cash charges of $2.8 million, including $2.3 million of stock-based
compensation expense and $273,000 of depreciation and amortization expenses,
compared with non-cash charges for the same period in 2011 of $2.4 million,
including $1.9 million of stock-based compensation expense and $420,000 of
depreciation and amortization expenses.
                                                                   

BG Medicine, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
                                                              
                                           As of             As of
                                           December 31, 2012 December 31, 2011
                                           (in thousands)
                                           (unaudited)
Assets                                                        
Current assets                                                
Cash and cash equivalents                   $ 12,786          $ 23,874
Restricted cash                             390               565
Accounts receivable                         395               115
Inventory                                   447               212
Prepaid expenses and other current assets   558               550
                                                              
Total current assets                        14,576            25,316
                                                              
Property and equipment, net                 197               301
Intangible assets, net                      372               456
Deposits and other assets                   96                37
                                                              
Total assets                                $ 15,241          $ 26,110
                                                              
Liabilities and Stockholders' Equity                          
Current liabilities                                           
Term loan, current portion                  $ 3,245           $ -- 
Accounts payable                            1,110             487
Accrued expenses                            3,549             3,348
Deferred revenue and customer deposits      411               1,368
                                                              
Total current liabilities                   8,315             5,203
                                                              
Term loan, net of current portion           6,612             -- 
Other liability                             5                 15
Stockholders' equity                        309               20,892
                                                              
Total liabilities and stockholders' equity  $ 15,241          $ 26,110
                                                              

BG Medicine, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
                                                             
                                                             
                                        Full Year Ended December 31,
                                        2012                2011
                                        (in thousands)
                                        (unaudited)
                                                             
                                                             
Net cash flows from operating            (21,333)            (14,966)
activities
                                                             
Net cash flows from investing            (85)                (93)
activities
                                                             
Net cash flows from financing            10,330              36,508
activities (1)
                                                             
Net (decrease) increase in cash and      (11,088)            21,449
cash equivalents
                                                             
Cash and cash equivalents, beginning of  23,874              2,425
period
                                                             
Cash and cash equivalents, end of        $ 12,786            $ 23,874
period
                                                             
(1) For the full year ended December 31, 2012, cash flows provided by
financing activities include proceeds from the $10.0 million term loan. For
the full year ended December 31, 2011, cash flows provided by financing
activities include net proceeds of $36.1 million from the initital public
offering.

CONTACT: Chuck Abdalian
         EVP & Chief Financial Officer
         (781) 434-0210

BG Medicine Inc. logo
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