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BG Medicine to Delist Stock; Posts 44 Percent Drop in 2015 Revenues

NEW YORK (GenomeWeb) – In a filing yesterday with the US Securities and Exchange Commission, BG Medicine said it has decided to voluntarily deregister its common stock and become a non-reporting company.

The company said it made this decision due to the "significant cost and resource demands of being a public company," noting as well that following deregistration it will no longer publish periodic financial information or furnish such information to its shareholders other than that which is required by law.

BG noted that it is able to delist its common stock because that stock is held by fewer than 300 shareholders of record.

BG also said it would file its annual report late this year and provided its anticipated 2015 earnings information.

The company said its revenues for full-year 2015 were $1.6 million, down 44 percent from $2.8 million a year ago. This decrease came primarily from a drop in product revenues, which were $1.5 million, down 46 percent from $2.8 million in 2014. Partnership and product fee revenues were $100,000, compared to none a year ago. The decline in product revenue was due largely to a 55 percent decline in orders from BG's largest clinical laboratory customer, Health Diagnostics Laboratory, which filed for bankruptcy in June 2015. 

BG's net loss for full-year 2015 was $5.3 million, 34 percent less than the $8.1 million loss it reported in 2014.

Operating expenses in 2015 were $5.7 million, down 38 percent from $9.2 million in 2014.

Net cash used in operating activities was $3.7 million, down 55 percent from $8.2 million a year ago.

BG's shares dropped 39 percent to $.22 in Friday morning trade on the Nasdaq.