Net Loss Reduced by 38% and
Operating Cash Burn Cut by 42% from First Quarter
2014
Outlook Improved for
2015
BG Medicine,
Inc. (Nasdaq:BGMD), the developer
of the BGM Galectin-3® Test, today reported financial results for
the first quarter of 2015.
"We continue to prepare for the U.S. market introduction of
automated galectin-3 testing," said Paul R. Sohmer, M.D., President
and Chief Executive Officer of BG Medicine. "To this end, we
continue to manage our operating expenses and reduce our operating
cash burn, we continue to build the case for galectin-3, we have
updated our agreement with Abbott Laboratories and we have closed
on the first tranche of a financing to provide resources to support
our role in the imminent U.S. market introduction of automated
galectin-3 testing."
First Quarter 2015 Financial Results
The Company reported net loss for the first quarter of $1.3
million, a 38% improvement from the $2.2 million net loss reported
in the prior year quarter, on total revenues of $437,000 versus
total revenues of $739,000 in the first quarter of 2014.
The decline in total revenues principally reflected a decrease
from the prior year quarter in product revenues generated from the
sale of our manual micro-titer plate platform BGM Galectin-3 Test.
The decrease in product revenues resulted from a $353,000 decline
in orders from our largest clinical laboratory customer and was
partially offset by increased sales of our BGM Galectin-3 Test
across all other laboratory customer segments.
Operating expenses for the first quarter declined by 37%, or
$894,000, from the prior year quarter. This decline in operating
expenses primarily resulted from a decrease in sales and marketing
expense of $496,000 and a decrease in general and administrative
expense of $321,000 that, in both cases, was primarily due to
reductions in personnel, travel expenses and professional fees.
These reductions were net of costs incurred in connection with the
workforce reduction initiated in the fourth quarter of 2014.
Net loss per share was $0.04 in the first quarter as compared to
$0.08 in the first quarter of 2014. Cash burn from operating
activities decreased by $1.0 million, a 42% decrease, to $1.4
million in the first quarter of 2015 compared to an operating cash
burn of $2.4 million in the first quarter of 2014.
Continuing to Build the Case for Galectin-3
During the first quarter, BG Medicine filed a 510(k) premarket
notification with the FDA to obtain regulatory clearance in the
U.S. to market a new indication for clinical use of the BGM
Galectin-3 Test and announced the publication of a landmark study
reporting clinical outcome results from the BG Medicine-sponsored
BioImage Study. In addition, in the first quarter of 2015, the role
of galectin-3 testing in cardiovascular disease and related
disorders was the subject of 20 papers that were published in
peer-reviewed medical and scientific journals, and 7 presentations
at the American College of Cardiology Scientific Sessions annual
meeting.
Amendment to Abbott Agreement
On May 8, 2015, in anticipation of the U.S. market launch of the
Abbott Laboratories (Abbott) ARCHITECT® Galectin-3 assay, BG
Medicine amended its license and development agreement with Abbott.
As Abbott takes the final steps toward making the assay available
in the U.S., BG Medicine and Abbott amended the agreement due to
market dynamic considerations since the Galectin-3 assay first
began development in 2009.
Private Placement Financing
On May 12, 2015, the Company entered into a Securities Purchase
Agreement (the "Purchase Agreement") with certain of the Company's
principal stockholders. Pursuant to the terms and subject to the
conditions contained in the Purchase Agreement, the Company issued
and sold to these shareholders secured convertible promissory notes
in aggregate principal amount of $500,000. In addition and pursuant
to the terms of the Purchase Agreement, and subject to the approval
of the Company's stockholders at the Company's 2015 annual meeting
of stockholders (the "2015 Annual Meeting") and the satisfaction or
waiver of other closing conditions, the Company has agreed to issue
and sell to these shareholders $2,000,000 of shares of newly
created Series A Preferred Stock, $0.001 par value per share, of
the Company at the second closing to be held following the
Company's 2015 Annual Meeting. For more information regarding the
financing, please refer to the Company's Current Report on Form
8-K.
Outlook for the Remainder of 2015
"In light of the following developments, we expect to reverse
the sequential decline in revenues that we have experienced
over the last three quarters: 1) Orders from our largest clinical
laboratory customer appear to have stabilized; 2) We are
experiencing modest revenue growth from our sales to the majority
of our clinical laboratory customers; 3) Although sales related to
independent research studies are difficult to predict, we are
currently experiencing modest revenue growth from this segment,
and; 4) We anticipate recognizing incremental revenues from
the U.S. market introduction of automated galectin-3 testing
in the latter half of 2015. For the full year 2015, we continue to
expect to decrease our operating cash burn as compared to
2014. We believe that closing on the $2.0 million second
tranche of our May 12, 2015 private placement financing, subject to
receipt of shareholder approval, will extend our runway into
2016."
Conference Call and Web
Cast
The Company will host a conference call and webcast today, May
14, 2015, beginning at 8:30 am Eastern Time. The conference call
may be accessed by dialing (877) 845-1016 from the U.S. and Canada,
or (708) 290-1155 from international locations. The conference call
will also be available via the Internet at www.bg-medicine.com.
Listeners are encouraged to login at least 15 minutes prior to the
start of the scheduled presentation to register, download and
install any necessary audio software.
About BG Medicine
BG Medicine, Inc. (Nasdaq:BGMD), the developer of the BGM
Galectin-3® Test, is focused on the development and delivery of
diagnostic solutions to aid in the clinical management of heart
failure and related disorders. For additional information about BG
Medicine, heart failure and galectin-3 testing, please visit
www.bg-medicine.com.
The BG Medicine Inc. logo is available for download
here
Forward Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements made in the second
paragraph and in the section captioned "Outlook for the Remainder
of 2015". Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no
obligation to update or revise the information contained in this
press release, whether as a result of new information, future
events or circumstances or otherwise. These forward-looking
statements are neither promises nor guarantees of future
performance, and are subject to a variety of risks and
uncertainties, many of which are beyond the Company's control,
which could cause actual results to differ materially from those
contemplated in these forward-looking statements. In particular,
the risks and uncertainties include, among other things, our cash
position; our ability to raise sufficient capital to continue our
operations and grow our business; our ability to obtain stockholder
approval to close the second tranche of our private placement
financing and to implement a reverse stock split; our ability to
continue as a going concern; our history of operating losses; the
limited public float and trading volume of our common stock and
volatility in our stock price; our ability to regain and maintain
compliance with the continued listing requirements of The NASDAQ
Capital Market; the ability of our automated partners to
successfully develop, market, commercialize and achieve widespread
market penetration for their automated galectin-3 tests; our
estimates of future performance, including the expected timing of
the market introduction of automated galectin-3 tests by our
automated partners; our ability to conduct the clinical studies
required for regulatory clearance or approval and to demonstrate
the clinical benefits and cost-effectiveness to support commercial
acceptance of our products; the timing, costs and other limitations
involved in obtaining regulatory clearance or approval for any of
our products; our ability to maintain product fees from our
automated partners to generate sufficient profit margins; our
ability to provide sufficient evidence of clinical utility for our
galectin-3 test and to differentiate it from competing
cardiovascular diagnostics tests; our ability to successfully
market, commercialize and achieve widespread market penetration for
our cardiovascular diagnostic tests; our ability to generate
sufficient product revenue to sustain our commercial diagnostics
business; our expectations regarding the impact on our galectin-3
test sales as a result of focusing our sales efforts on the
hospital readmissions problem and associated penalties facing
hospitals and health care providers; the potential benefits of our
products over current medical practices or other diagnostics; our
ability to successfully develop, receive regulatory clearance or
approval, commercialize and achieve market acceptance for any of
our products; willingness of third-party payors to reimburse for
the cost of our tests at prices that allow us to generate
sufficient profit margins; our reliance on third parties to develop
and distribute our products, including our ability to enter into
collaboration agreements with respect to our products and the
performance of our collaborative partners under such agreements;
our ability to protect our intellectual property and operate our
business without infringing upon the intellectual property rights
of others; the expected timing, progress or success of our research
and development and commercialization efforts; our estimates
regarding anticipated operating losses, future revenue, expenses,
capital requirements and our needs for additional financing; our
ability to retain qualified personnel; and other factors discussed
in the Company's most recent Annual Report on Form 10-K as well as
other documents that may be filed by the Company from time to time
with the Securities and Exchange Commission or otherwise made
public. All information in this press release is as of the date of
the release, and BG Medicine undertakes no duty to update this
information unless required by law.
BG Medicine, Inc. and
Subsidiary |
Unaudited Condensed
Consolidated Statements of Operations |
|
|
|
|
Three Months Ended March 31, |
|
2015 |
2014 |
|
(in thousands, except share and per share data) |
|
|
|
Product revenues |
$437 |
$739 |
|
|
|
Costs and operating expenses: |
|
|
Product costs |
149 |
248 |
Research and development |
483 |
560 |
Selling and marketing |
192 |
688 |
General and administrative |
869 |
1,190 |
|
|
|
Total costs and operating expenses |
1,693 |
2,686 |
|
|
|
Loss from operations |
(1,256) |
(1,947) |
Interest income |
-- |
2 |
Interest expense |
(92) |
(233) |
Other expense |
-- |
(1) |
|
|
|
Net loss |
$(1,348) |
$(2,179) |
|
|
|
Net loss per share - basic and
diluted |
$(0.04) |
$(0.08) |
|
|
|
Weighted-average common shares outstanding
used in computing per share amounts - basic and diluted |
34,559,173 |
27,936,530 |
|
BG Medicine, Inc. and
Subsidiary |
Unaudited Condensed
Consolidated Balance Sheets |
|
|
|
|
March 31, 2015 |
December 31, 2014 |
|
(in thousands, except share and per share data) |
Assets |
|
|
Current assets |
|
|
Cash |
$1,612 |
$4,123 |
Accounts receivable |
132 |
174 |
Inventory |
280 |
400 |
Prepaid expenses and other current
assets |
249 |
154 |
|
|
|
Total current assets |
2,273 |
4,851 |
|
|
|
Property and equipment, net |
103 |
117 |
Intangible assets, net |
120 |
135 |
Deposits and other assets |
94 |
126 |
|
|
|
Total assets |
$2,590 |
$5,229 |
|
|
|
Liabilities and Stockholders'
(Deficit) Equity |
|
|
Current liabilities |
|
|
Term loan |
1,856 |
2,960 |
Accounts payable |
579 |
695 |
Accrued expenses |
615 |
906 |
Other current liabilities |
20 |
18 |
|
|
|
Total current liabilities |
3,070 |
4,579 |
|
|
|
Other liabilities |
86 |
93 |
|
|
|
Total liabilities |
3,156 |
4,672 |
|
|
|
Total stockholders' (deficit)
equity |
(566) |
557 |
|
|
|
Total liabilities and stockholders'
(deficit) equity |
$2,590 |
$5,229 |
|
|
BG Medicine, Inc. and
Subsidiary |
Unaudited Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
Three Months Ended March 31, |
|
2015 |
2014 |
|
(in
thousands) |
|
|
|
Net cash flows used in operating
activities |
(1,391) |
(2,379) |
|
|
|
Net cash flows used in financing
activities |
(1,120) |
(1,119) |
|
|
|
Net decrease in cash |
(2,511) |
(3,498) |
|
|
|
Cash, beginning of period |
4,123 |
7,751 |
|
|
|
Cash, end of period |
$1,612 |
$4,253 |
CONTACT: Stephen Hall, EVP & Chief Financial Officer
(781) 890-1199
BG Medicine (CE) (USOTC:BGMD)
Historical Stock Chart
From Oct 2024 to Nov 2024
BG Medicine (CE) (USOTC:BGMD)
Historical Stock Chart
From Nov 2023 to Nov 2024