NEW YORK (GenomeWeb News) – BG Medicine today reported a 7 percent increase year over year in revenues for the fourth quarter.
The Waltham, Mass.-based firm said that revenues for the three months ended Dec. 31, 2013 totaled $1.15 million, up from $1.07 million a year ago and beating the average analyst estimate of $1.1 million. Product revenues, however, declined to $884,000 from $978,000 a year ago, a 10 percent drop. Service revenues were up 182 percent to $265,000 from $94,000 in Q4 2012.
The company trimmed its operating expenses in the quarter by 27 percent, resulting in a net loss for the quarter of $1.9 million, or $.06 per share, compared to $2.9 million, or $.14 per share, in Q4 2012. The consensus Wall Street estimate was for a loss of $.12 per share.
For full-year 2013, revenues increased 45 percent to $4.1 million from $2.8 million in 2012. This matched the consensus analyst estimate. Product revenues jumped to $3.7 million from $2.6 million a year ago, while service revenues rose to $390,000 from $245,000.
BG's net loss for full year 2013 was $15.8 million, or $.58 per share, down 33 percent from $23.8 million, or $1.18 per share, a year ago, and beating the average Wall Street estimate of a loss of $.63 per share.
On a conference call following release of the company's earnings, President and CEO Paul Sohmer credited a refocusing and restructuring of the company's commercialization and clinical research strategies to prioritize adoption of its BGM Galectin-3 test as key to the firm's revenue growth and reduced cash burn.
He cited several factors that had helped drive adoption of the test in 2013, including recognition in the American College of Cardiology Foundation and American Heart Association Guideline for the Management of Heart Failure and the publication of 13 clinical research and review articles related to the utility of the test in heart failure and related disorders.
Looking to 2014, Sohmer said the company aims to further decrease its operating cash burn as compared to 2013, though he did not provide specific guidance. At the same time, BG Medicine also plans to "explore new indications and clinical claims" for galectin-3, he said.
In particular, Sohmer said, research has suggested the protein could prove a target for the development of new therapeutic agents.
"Other studies," he added, "suggest it could be used to identify patients who may or may not response to certain therapeutic interventions." As an example he cited a patent recently awarded to the company relating to the use of galectin-3 in predicting patient response to cardiac resynchronization therapy.
Sohmer also touched on the progression of the BG's CardioScore test, its multi-analyte assay for identifying individuals at high risk for near-term cardiovascular events.
BG submitted CardioScore for US Food and Drug Administration 510(k) clearance in 2011, but withdrew the submission the following 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.
Sohmer said the company had recently completed a medical review of this study data and was now evaluating the results of this review. "This evaluation will guide out commercial, reimbursement, and regulatory strategies for CardioScore," he said, adding that "we hope over the next few months to have a clear pathway for how we are moving forward with [the test]."
One possible route would be an out-licensing deal, he said, noting that the company has received interest in such an arrangement.
The company's Q4 results include $194,000 in R&D costs. In Q4 2012, it posted an $80,000 gain in R&D due to reversals of accrued expenses. SG&A costs were $2.3 million, down 34 percent from $3.5 million in Q4 2012.
For full year 2013, its R&D costs dropped 51 percent to $3.7 million from $7.6 million in 2012, while SG&A expenses were down 22 percent to $13.3 million from $17.0 million.
BG ended 2013 with $7.8 million in cash and cash equivalents.