NEW YORK (GenomeWeb News) – Investment firm RW Baird today initiated coverage of BG Medicine with an "Outperform" rating and a target price of $12 per share.
In a research note, analyst Quintin Lai wrote that the Waltham, Mass.-based developer of protein marker tests has demonstrated progress in its business, securing clearance with the US Food and Drug Administration in November for its Galectin-3 test for heart failure. Laboratory Corporation of America markets the test in the US.
The firm also has entered into partnerships with Abbott, Siemens, Alere, and BioMérieux to develop an automated test, Lai noted, adding that such IVD instrument manufacturers have large and mature installed bases and expertise in adding new biomarkers to their platform, which could speed up adoption of the test.
He added that the partners are in the process of preparing 510(k) submissions to the FDA to add Galectin-3 to their installed bases of automated immunoassay instruments.
Lastly, Lai noted that BG Medicine has developed AMIPredict, a panel of protein biomarkers "that have shown promise in improving risk assessment screening for acute atherothrombosis versus the current Framingham Risk Score." Preliminary data suggests AMIPredict may be a better predictor of high-risk individuals and low-risk individuals "with fewer ambiguous medium-risk callouts."
BG Medicine expects to file AMIPredict for 510(k) clearance as a service later this year, he said.
BG Medicine, which went public last month, will release its fourth-quarter earnings today after the close of the market.
In early morning trading, shares of BG Medicine were up more than 4 percent on the Nasdaq at $8.06.