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BG Medicine Aims for Around $67M in IPO

By a GenomeWeb Staff Reporter

NEW YORK (GenomeWeb News) – BG Medicine has filed an amendment to the preliminary prospectus for its initial public offering, saying that it hopes to raise around $67 million from selling 4.75 million shares at an offering price of between $13 and $15.

The Waltham, Mass.-based firm had filed in January to go public. It was the second time it had sought to go public, following an initial attempt in 2007 to float on the Euronext Amsterdam Exchange, but it withdrew that offering a few months later due to unnamed "current market conditions."

The latest amendment provides the estimated offering range for the offering, though a date for the registration statement to become effective has not been set. If the firm goes public at the mid-point of the offering range, and the over-allotment option of 712,500 shares is exercised, its market capitalization would be roughly $258 million.

BG Medicine makes biomarker-based tests that are developed using its metabolomics and proteomics-based technologies. Its lead product is the BGM Galectin-3 test, which measures galectin-3 levels in blood as an indicator of heart failure.

Last week, BG received US Food and Drug Administration clearance for the test in conjunction with clinical evaluation as an aid to assess the prognosis of patients diagnosed with chronic heart failure. BG said it is currently finalizing its commercialization plans with LabCorp to make the test available within 45 days of the FDA clearance. The company obtained a CE mark for the test in October 2009.

"Although our manual BGM Galectin-3 test is an important element of our commercialization strategy, we believe that automated instrument versions of our test will be required for us to achieve broad customer acceptance and clinical adoption," BG said in its amended Form S-1. "We have entered into worldwide development and commercialization agreements with Abbott Laboratories, Alere, and bioMérieux for the inclusion of our galectin-3 test on a variety of automated laboratory instruments, including point-of-care instruments."

It added that it expects an automated instrument version of the test to be available for commercial use through one or more of the named instrument manufacturers in the first half of 2012.

BG said that it plans to use around $20 million to $25 million of proceeds from the offering to fund the commercial launch of the BGM Galectin-3 test, including establishing a commercial organization and infrastructure. It also would use around $10 million to $15 million of the funds for development, potential regulatory submission, and potential commercial launch activities for its other diagnostic product candidates, which includes a galectin-3 test to identify patients at elevated risk for heart failure following a heart attack, AMIPredict for acute atherothrombosis, and LipidDx, which is a protein assay for common lipid disorders.

The firm also said that it would use around $5 million to $10 million of the proceeds to support its biomarker discovery efforts and potential clinical development of additional novel diagnostic product candidates. The remaining proceeds would go toward possible acquisitions of technologies, products, or businesses to complement its business; and other general corporate purposes.

For the nine months ended Sept. 30, BG Medicine had revenues of $620,000, and a net loss of $14.6 million, or $4.93 per share. For full-year 2009, its revenues were $8.5 million, with a net loss of $17.1 million, or $5.84 per share.

As of Sept. 30, the firm held cash, cash equivalents, and marketable securities of $2.9 million.

BG employs 38 full-time staffers, of which 24 are engaged in R&D, six in sales and marketing, and eight in general and administrative positions.

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