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BG Medicine IPO Still a Possibility Despite Price Issue

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – A BG Medicine official said that the company has not pulled its initial public offering, despite being unable to price it thus far.

In an e-mail to GenomeWeb Daily News, Stacie Rader, senior vice president of executive operations and human resources for the firm, denied a Dow Jones Newswire article, which stated that the Waltham, Mass., biomarker development firm had abandoned its IPO because it had been unable to price it during the week.

In the e-mail, Rader said, "We were not able to price our initial public offering this week due to market conditions." But, she added, "We have not withdrawn our registration statement. We are considering our options at this point."

BG Medicine had originally filed its IPO in January, which targeted as much as $86.3 million. Last month, however, in an amended prospectus filed with the US Securities and Exchange Commission, the company effectively lowered its target when it listed an offering range of between $13 and $15 per share and said it planned to offer 4.75 million shares, which would have raised as much as $71.3 million.

At the mid-point of its offering, and if the over-allotment option of 712,500 shares were exercised, BG Medicine's market capitalization would have been about $258 million.

Proceeds from the IPO would have been directed at the commercial launch of its lead product, the BGM Galectin-3 test for diagnosing chronic heart failure, which was cleared by the US Food and Drug Administration last month.

At the time, BG Medicine said that it was finalizing plans with LabCorp to bring the test to market within 45 days of the FDA clearance and added it had entered into agreements with Abbott Laboratories, Alere, and BioMérieux to develop and commercialize automated versions of the BGM Galectin-3 test for use on those companies' systems.

The current IPO is the second attempt to go public by BG Medicine in recent years. In 2007, it announced plans to trade on the Euronext Amsterdam Exchange but pulled that IPO a few months later citing market conditions.

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