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Driven by Product Revenues, BG Medicine's Q4 Revenues Spike 90 Percent

NEW YORK (GenomeWeb News) – Product revenues helped drive up total revenues for BG Medicine in the fourth quarter 90 percent year over year, the company reported today.

For the three months ended Dec. 31, 2011, BG Medicine brought in $379,000 in total revenues, up from $199,000, and beating consensus analyst estimates of $250,000. The company had $307,000 in product revenues, compared to none a year ago, offsetting a 64 percent drop in service revenues to $72,000 from $199,000 in the year-ago period.

The firm more than doubled its R&D spending to $2 million from $943,000 a year ago, while SG&A spending rose 53 percent to $2.9 million from $1.9 million.

For the quarter, the Waltham, Mass.-based firm's net loss was $4.7 million, or $.23 per share, compared to a net loss of $3.3 million, or $1.18 per share, a year ago. The company used 19.7 million shares of its common stock to determine the net loss per share figure in Q4 2011 compared to 3 million shares in Q4 2010, partly reflecting the firm's initial public offering in early 2011.

Wall Street expected a net loss of $.29 per share.

Full-year 2011 revenues doubled year over year to $1.6 million from $819,000 in 2010, exceeding analyst estimates of $1.5 million.

Product revenues came in at $451,000, compared to $11,000, while service revenues rose 50 percent to $1.2 million from $808,000.

Its R&D costs for the year increased to $8 million, up 23 percent from $6.5 million a year ago, while SG&A spending increased 30 percent to $10.5 million from $8.1 million.

BG Medicine saw a net loss of $17.6 million, or $1 per share, compared to $17.2 million, or $6.12 per share, in 2010. Analysts had estimated a net loss per share of $1.06.

It ended the year with $23.9 million in cash and cash equivalents, and $565,000 in restricted cash.

Eric Bouvier, president and CEO of BG Medicine, outlined in a statement several goals for the company in 2012, including filing a 510(k) submission to the US Food and Drug Administration to extend the label for galectin-3 to include patients at risk for heart failure, such as those with hypertension, diabetes, a previous myocardial infarction, or a family history of heart failure.

"If cleared by FDA, we believe that this label extension will significantly increase the potential market for our galectin-3 test," Bouvier said.

The company's automated platform partners for the test — Abbott, Alere, bioMérieux, and Siemens — continue to develop automated versions of the test. BG Medicine expects a 510(k) filing for the first automated version of test to be done by the end of the second quarter, followed by a 510(k) submission for a second version of the test in the second half of the year.

Two of the partners are expected to launch automated versions of the test in Europe by the end of 2012, he added.

The company also expects to receive final approval and pricing for the analyte-specific CPT code for the galectin-3 test by the end of the year.

In the meantime, BG Medicine is working with FDA on its submission for the CardioScore test for predicting near-term cardiovascular events. The company submitted its 510(k) application for the test, which had been called AMIPredict, in December.

By mid-year, it expects to announce its commercialization strategy for the test, Bouvier said.

In early Thursday trading, shares of BG Medicine were up a fraction of 1 percent on the Nasdaq at $6.72.

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