NEW YORK (GenomeWeb News) – BG Medicine reported a 44 percent drop in first-quarter revenues year over year as its service revenues plummeted but its product revenues rose sharply.
The Waltham, Mass.-based cardiovascular test manufacturer had total revenues of $480,000 for the three months ended March 31, down from $855,000 for the first quarter of 2011. Its service revenues fell to $64,000 from $843,000, while its product revenue jumped to $416,000 from $12,000. The first quarter of 2011 included $700,000 in service revenues associated with the High Risk Plaque Initiative.
BG said that the sharp increase in product revenues was due to increasing demand for its Galectin-3 test for heart failure. The test has US Food and Drug Administration clearance and is marketed by Laboratory Corporation of America in the US, and the firm recently said that Mayo Medical Laboratories is making the test available to its networks. BG also said that it expects by the end of this year to receive final approval and pricing for the analyte-specific CPT code for the Galectin-3 test.
In addition, an automated version of the test is being developed by BG partners, Abbott Laboratories, Alere, Siemens, and BioMérieux. BG expects the first of those partners will file for FDA clearance this year.
In late 2011, BG filed for FDA clearance of AMIPredict, now called CardioScore, a test for identifying individuals at high risk for near-term cardiovascular events such as a heart attack or stroke. The firm hopes to receive FDA clearance of that multiplex protein biomarker test by the end of the year.
BG posted a net loss of $7.7 million, or $.38 per share, for the quarter, compared to a net loss of $3.1 million, or $.27 per share, for the first quarter of 2011.
Its R&D spending for the quarter increased 76 percent to $3 million from $1.7 million, and its SG&A expenses more than doubled to $4.8 million from $2 million.
BG finished the quarter with $28 million in cash and cash equivalents and $561,000 in restricted cash.
It secured a loan facility for up to $15 million with GE Capital's Healthcare Financial Services and Comerica Bank during the quarter.