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BG Medicine Q4 Revenues Halved; Firm Files for Additional Galectin-3 Test Indication

NEW YORK (GenomeWeb) – BG Medicine today said that its fourth quarter revenues were nearly halved year over year as both product and service revenues declined. 

The company separately announced that it filed a 510(k) premarket notification for clearance of an additional indication for the BGM Galectin-3 test. 

The company posted $554,000 in revenues for the three months ended Dec. 31, 2014, down from $1.1 million in Q4 2013. Product revenues slid to $554,000 from $884,000 as orders from the firm's largest clinical laboratory customer decreased by $188,000, while purchases related to independent research studies fell of by $143,000, BG Medicine said. 

Service revenues fell to zero in Q4 2014 from $265,000 in the year-ago quarter as the result of a planned completion of the High Risk Plaque initiative in 2013 and the closing of the company's research facilities in order to streamline operations, it added. 

The High Risk Plaque Initiative is a research project begun in 2007 by BG Medicine, Merck, AstraZeneca, and Philips to develop diagnostic biomarkers for predicting heart attacks. 

BG Medicine had a net loss of $1.3 million, or $.04 per share, in the recently completed quarter, compared to a net loss of $1.9 million, or $.06 per share, in Q4 2013. 

Its R&D costs increased sharply to $538,000 in Q4 2014 from $194,000 in Q4 2013, while its SG&A expenses narrowed to $1.0 million from $2.3. 

BG Medicine's full-year 2014 revenues dropped 32 percent to $2.8 million from $4.1 million in 2013. Product revenues, which comprised all of the company's revenues for 2014, fell to $2.8 million from $3.7 million in 2013, while service revenues fell to zero from $390,000. 

Its net loss for 2014 decreased to $8.1 million, or $.25 per share, from $15.8 million, or $.58 per share, in 2013. 

The firm reduced its R&D spending 35 percent year over year to $2.4 million from $3.7 million in 2013 and cut its SG&A costs 96 percent to $6.8 million from $13.3 million. 

BG Medicine finished 2014 with $4.1 million in cash. 

In December the US Food and Drug Administration cleared the company's Architect galectin-3 assay for the automated testing of galectin-3, which the firm plans to launch in mid-2015. BG Medicine President and CEO Paul Sohmer said in a statement today that the company's commercial strategy will increasingly depend on the ability of its partners to commercialize its automated galectin-3 tests, while the company "will continue to manage aggressively our operating expenses and cash burn." 

The company also said today that it has filed for FDA clearance for an additional indication for the BGM Galectin-3 test. The filing incorporates data from a study in which galectin-3 levels were evaluated in 6,762 participants. The study assessed the association of elevated levels of the protein with adverse cardiovascular events in men and women with no prior history of cardiovascular, cerebrovascular, or vascular disease. 

In Tuesday morning trading, shares of BG Medicine were down 14 percent on the Nasdaq at $.82. 

Earlier this month BG Medicine said that Nasdaq has notified it that the company's stock may be delisted for failing to meet a requirement calling for a minimum $1 closing bid for 30 consecutive business days. BG Medicine said it planned to request a hearing to present a plan to regain compliance.