BG Medicine Reports 2013 Third Quarter Financial Results

BG Medicine Reports 2013 Third Quarter Financial Results

Capital Health Accountable Care Organization LLC Adopts BGM Galectin-3^® Test

     Network of Laboratories in U.S. Offering BGM Galectin-3Test Expanded

       Full-Year 2013 Product Revenue and Cash Burn Guidance Confirmed

WALTHAM, Mass., Nov. 6, 2013 (GLOBE NEWSWIRE) -- BG Medicine, Inc.
(Nasdaq:BGMD), the developer of the BGM Galectin-3 Test, today reported
financial results for the third quarter of 2013.

The Company reported product revenues of $1.0 million, a 65% increase from the
$0.6 million in revenues reported in the third quarter of 2012. Net loss for
the third quarter was $3.7 million, a 46% improvement from the $6.8 million
net loss reported in the third quarter of 2012. Operating expenses in the
quarter declined by 42% from the same period in the prior year. Net loss per
share in the quarter was $0.13 compared to $0.34 for the third quarter of
2012. Operating cash burn decreased by $1.5 million, a 27% decrease, to $4.0
million compared to $5.5 million in the same period of 2012.

"We continue to make significant progress in addressing the fundamentals of
our business," said Paul R. Sohmer, M.D., President and Chief Executive
Officer. "We believe that we are setting the table for our go-forward
success."

Q3 2013 Highlights

  *The Centers for Medicare and Medicaid Services (CMS) announced a
    preliminary decision to set the Medicare payment rate for testing for
    galectin-3 at the amount of a crosswalked test whose 2013 national
    limitation amount is $30.24, a 70% increase from the current national
    limitation amount for galectin-3, subject to a final determination by CMS
    by year-end 2013 and anticipated overall adjustments to the Clinical
    Laboratory Fee Schedule for 2014.
  *The Capital Health Accountable Care Organization (ACO), a community health
    improvement collaborative servicing communities in New Jersey and eastern
    Pennsylvania, adopted the BGM Galectin-3^® Test throughout its
    organization to help identify heart failure patients at risk for unplanned
    hospital admissions and readmissions.
  *The network of clinical laboratories offering the BGM Galectin-3 Test in
    the U.S. was expanded by the addition of the SilverStaff Clinical
    Laboratories, headquartered in Tennessee.
  *The results of a clinical research study published online in the European
    Journal of Heart Failure (Eur J Heart Fail. 2013 Oct; 15(10):1157-63)
    affirmed the near-term significance of repeat testing for galectin-3 in
    blood using the BGM Galectin-3 Test for subjects with chronic heart
    failure.
  *The results of a clinical research study of 2,450 participants of the
    National Heart, Lung, and Blood Institute's Framingham Heart Study
    published in the Journal of the American Society of Nephrology (J Am Soc
    Nephrol. 2013 Sep; 24(9):1470-7) revealed that elevated levels of
    galectin-3 in blood were significantly associated with increased risks of
    rapid loss of kidney function and of incident chronic kidney disease. The
    authors noted that their findings suggest that galectin-3 testing may
    detect kidney injury years before the clinical onset of kidney disease and
    may afford early and targeted strategies aimed at kidney disease
    prevention.

"We expect to drive adoption of the BGM Galectin-3 Test and grow our near-term
revenues by leveraging: 1) the new CMS payment rate; 2) demand from
physicians,health care provider groups, such as accountable care
organizationsand community health improvement collaboratives, hospitals and
regional clinical laboratories; 3) the expanding network of laboratories
offering galectin-3 testing; 4) the utility of our current FDA cleared and CE
Marked indications for use; and 5) clinical research data that affirm the
near-termsignificance of galectin-3 testing for patients with chronic heart
failure," Dr. Sohmer continued. "Longer term, we expect to grow revenues from
the future introduction of new patient selection tools that may incorporate
new clinical indications for the BGM Galectin-3 Test, as well as, other
biomarkers or combinations of biomarkers that we identify from our analyses of
appropriate clinical cohorts, including the BG Medicine sponsored BioImage
Study."

For the nine months ended September 30, 2013, product revenues grew 76% to
$2.8 million from the $1.6 million reported for the same period in 2012. Net
loss per share was $0.52 in the first nine months of 2013 compared to $1.04
for the same period of 2012. Operating cash burn decreased by $3.7 million, a
22% decrease, to $12.8 million in the first nine months of 2013 compared to
$16.5 million in the same period in 2012. At September 30, 2013, the Company's
unrestricted cash and cash equivalents totaled approximately $11.3 million.

"We will continue to aggressively manage our spending," added Dr. Sohmer.
"Notwithstanding our ongoing commercial and development activities, we expect
to continue to reduce our operating expenses. In fact, we believe that
operating expenses in 2014 will be approximately 33% lower than what we are
currently forecasting for the full year 2013. In addition, we will now
consider our options for financing."

"For the remainder of 2013, we will continue to: 1) drive the adoption of
galectin-3 testing of chronic heart failure patients with health care provider
groups and laboratories for which galectin-3 could create the most value, such
as accountable care organizations, hospitals, IDN's, and regional reference
laboratories; 2) assist Abbott Diagnostics with its currently on-track
resubmission to the FDA for 510(k) clearance of its ARCHITECT® Galectin-3
assay by year-end; 3) complete the medical review of data generated in support
of BG Medicine's previous submission to the FDA for 510(k) clearance of the
CardioSCORE™ test; and 4) rigorously control our investments," concluded Dr.
Sohmer. "Our financial guidance for the year ending December 31, 2013 remains
unchanged: revenues are expected to range between $3.8 and $4.0 million and
the operating cash burn for the year is expected to range from $15.5 to $16.5
million and principal payments for 2013 on our term loan to be $2.5 million."


Conference Call and Web Cast

The Company will host a conference call and webcast today, November 6, 2013,
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.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), the developer of the BGM Galectin-3 Test, is
focused on the development and delivery of diagnostic solutions to aid in the
clinical management of heart failure and related disorders. For additional
information about BG Medicine, heart failure and galectin-3 testing, please
visit www.bg-medicine.com.The BG Medicine Inc. logo is available for download
here

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 expectations regarding the factors we
will leverage to drive the near-term adoption of the BGM Galectin-3 Test; our
plans regarding how we will grow revenues in the longer-term using new patient
selection tools, new clinical indications and biomarkers; our plans to manage
our spending and reduce operating expenses even as we grow our business and
our expectation regarding the amount by which we may reduce our expenses; our
plans to consider external financing options; our plans to assist Abbott with
its 510(k) resubmission, to complete the medical review of data for our
CardioSCORE test and to control our investments; our expectations regarding
the timing and results of the implementation of our refocused business
priorities; and our financial guidance for fiscal 2013.

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, 2012 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
Unaudited Condensed Consolidated Statements of Operations
                                                              
                         Three Months Ended         Nine Months Ended
                         September 30,              September 30,
                         2013          2012         2013         2012
                         (in thousands, except share and per share data)
                         
                                                              
Revenues:                                                      
Product revenue           $1,007      $610       $2,799     $1,592
Service revenue           23           31          125         151
                                                              
Total revenues            1,030        641         2,924       1,743
                                                              
Costs and operating                                            
expenses (1):
Product costs             321          209         954         552
Service costs             23           31          125         151
Research and development 1,048        2,549       3,541       7,662
Selling and marketing     1,353        2,524       5,279       7,388
General and               1,648        1,864       5,738       6,113
administrative
                                                              
Total costs and operating 4,393        7,177       15,637      21,866
expenses
                                                              
Loss from operations      (3,363)      (6,536)     (12,713)    (20,123)
                                                              
Non-cash consideration
associated with stock     --          --         (329)       --
purchase agreement
Interest income           3            9           13          17
Interest expense          (309)        (302)       (893)       (779)
Other income             4            15          8           15
                                                              
Net loss                  $(3,665)    $(6,814)   $(13,914)  $(20,870)
                                                              
                                                              
Net lossper share -      $(0.13)     $(0.34)    $(0.52)    $(1.04)
basic and diluted
                                                              
Weighted-average common
shares outstanding used
in computing per share    27,918,883   20,320,190  26,971,981  20,118,768
amounts - basic and
diluted
                                                              
                                                              
(1) Included in operating expense for the three months ended September 30,
2013 were non-cash charges of $0.4 million including $0.3 million of
stock-based compensation expense and $0.1 million of depreciation and
amortization expenses, compared with non-cash charges for the same period in
2012 of $0.7 million including $0.6 million of stock-based compensation
expense and $0.1 million of depreciation and amortization expenses.
Included in operating expenses for the nine months ended September 30, 2013
were non-cash charges of $1.2 million including $0.9 million of stock-based
compensation expense and $0.3 million of depreciation and amortization
expenses, compared with non-cash charges for the same period in 2012 of $2.1
million including $1.9 million of stock-based compensation expense and $0.2
million of depreciation and amortization expenses.

                                                       
BG Medicine, Inc. and Subsidiary
Unaudited Condensed Consolidated Balance Sheets
                                                       
                                                       
                                 September 30, 2013     December 31, 2012
                                 (in thousands)
                                 
Assets                                                  
Current assets                                          
Cash and cash equivalents         $11,349              $12,786
Restricted cash                   265                   390
Accounts receivable               451                   395
Inventory                         411                   447
Prepaid expenses and other        504                   558
current assets
                                                       
Total current assets              12,980                14,576
                                                       
Property and equipment, net       194                   197
Intangible assets, net            207                   372
Deposits and other assets         180                   96
                                                       
Total assets                      $13,561              $15,241
                                                       
Liabilities and Stockholders'                           
Equity
Current liabilities                                     
Term loan, current portion        $4,327               $3,245
Accounts payable                  1,223                 1,110
Accrued expenses                  3,000                 3,549
Other current liabilities         342                   411
                                                       
Total current liabilities         8,892                 8,315
                                                       
Term loan, net of current portion 4,059                 6,612
Other liabilities                 --                   5
Stockholders' equity              610                   309
                                                       
Total liabilities and             $13,561              $15,241
stockholders' equity
                                                       
The condensed consolidated balance sheet at December 31, 2012 has been derived
from the audited consolidated financial statements at that date included in
the Company's Form 10-K from the fiscal year ended December 31, 2012.

                                                        
BG Medicine, Inc. and Subsidiary
Unaudited Condensed Consolidated Statements of Cash Flows
                                                        
                                                        
                                    Nine Months Ended September 30,
                                    2013                 2012
                                    (in thousands)
                                    
                                                        
                                                        
Net cash flows used in operating     (12,820)            (16,521)
activities
                                                        
Net cash flows used in investing     (15)                (85)
activities
                                                        
Net cash flows provided by financing 11,398              10,311
activities (1)
                                                        
Net decrease in cash and cash        (1,437)             (6,295)
equivalents
                                                        
Cash and cash equivalents, beginning 12,786              23,874
of period
                                                        
Cash and cash equivalents, end of    $11,349            $17,579
period
                                                        
(1) For the ninemonths ended September 30, 2013, cash flows provided by
financing activites include net proceeds from the follow-on public offering,
offset by commencement of principal amortization under the term loan.For the
nine months ended September 30, 2012, cash flows provided by financing
activites include net proceeds from the term loan.

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

BG Medicine Inc. logo
 
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