NEW YORK (GenomeWeb News) – BG Medicine today reported third quarter revenues of $1 million, up 56 percent from $641,000 in the third quarter of 2012.
The revenue increase was driven by $1 million in revenues from sales of the company's BGM Galectin-3 test, a 64 percent jump from the $610,000 it posted in Q3 2012. BG also reported $23,000 in revenues from its services business, down 26 percent from $31,000 a year ago.
The company's revenues matched the average Wall Street estimate of $1 million.
BG's net loss for the quarter was $3.7 million, or $.13 per share, down from a net loss of $6.8 million, or $.34 per share, in the third quarter of last year, and beating the average Wall Street estimate of a net loss of $0.17 per share.
For the quarter, the company's R&D spending was down 58 percent to $1 million from $2.6 million in Q3 2012. Its SG&A expenses dropped to $3 million, down 32 percent from $4.4 million in the year-ago period.
On a conference call following the release of the results, CEO Paul Sohmer said the company planned to continue to cut costs and estimated that its 2014 operating expenses would be roughly 33 percent lower than in full-year 2013.
Sohmer added that the company was now considering options for obtaining additional external financing, though he declined to provide specifics as to what route it might pursue in this regard.
Sohmer provided an update on Abbott Diagnostics' resubmission of an automated ARCHITECT Galectin-3 assay to the FDA for 510(k) clearance, noting that this was on track to be completed by year end.
BG expects also expects by year end to complete a medical review of data generated in support of its previous 510(k) submission to FDA for its CardioScore test for identifying individuals at high risk of near-term cardiovascular events, Sohmer said.
The company submitted CardioScore for FDA clearance in 2011, but withdrew the submission last year upon determining that it would not be able to respond in full to a request from FDA to confirm certain data from its BioImage validation study for the test.
BG also announced that it added two new customers for its BGM Galectin-3 test during the quarter. The Capital Health Accountable Care Organization, a community health improvement collaborative servicing communities in New Jersey and eastern Pennsylvania, adopted the test to help identify heart failure patients at risk for unplanned hospital admissions and readmissions. Franklin, Tenn.-based SilverStaff Clinical Laboratories, began offering the test, as well.
The company maintained its full-year 2013 guidance of revenues between $3.8 million to $4.0 million, and an expected operating cash burn of between $15.5 million and $16.5 million.
BG Medicine ended the quarter with $11.3 million in cash and cash equivalents, and $265,000 in restricted cash.