BG Medicine this week began trading shares of its stock on the Nasdaq under the ticker symbol "BGMD."
The diagnostics firm is offering 5 million shares of its stock at $7 per share, with a target of $35 million in total proceeds – roughly 41 percent of the $86.3 million target the company gave when it filed to go public a year ago and 52 percent of the adjusted $67 million target it set in November (PM 12/03/2010).
At the close of trading Friday afternoon, BGM stock was at $7.83 per share, up 12 percent from its opening price.
In an amended S-1 filed with the US Securities and Exchange Commission this week, the company said it would use roughly $15 million of the proceeds from the offering for the commercial launch of its BGM Galectin-3 chronic heart failure diagnostic, with another $8 million going toward the development and commercialization of other cardiovascular biomarker candidates.
The manual version of the test received approval from the US Food and Drug Administration in November, and BGM is currently finalizing commercialization plans with the Laboratory Corporation of America. The company noted in the preliminary prospectus for its IPO, however, that it believes an automated version of the test will be required for it "to achieve broad customer acceptance and clinical adoption." In January, it announced an agreement with Siemens Healthcare Diagnostics for the development and commercialization of such a product, which followed on similar deals with deals with Abbott, Alere, and BioMérieux (PM 1/27/2011).
In its IPO prospectus BGM also said that it hopes to submit a 510(k) premarket notification to the FDA for an automated test by the fourth quarter of 2011, and to have such a test on the market in the first half of 2012.