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TheStreet Open House

BG Medicine Reports Fourth Quarter And Full Year 2012 Financial Results And Provides 2013 Outlook

Stocks in this article: BGMD

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About BG Medicine

BG Medicine, Inc. (Nasdaq:BGMD) is a diagnostics company focused on the development and commercialization of novel cardiovascular tests to address significant unmet medical needs, improve patient outcomes and reduce healthcare costs. The Company has two products: the BGM Galectin-3® test for use in patients with chronic heart failure is available in the United States and Europe; and the CardioSCOREā„¢ test for the risk prediction of major cardiovascular events will be launched in Europe in the first half of 2013. For additional information about BG Medicine, heart failure and galectin-3 testing, please visit www.bg-medicine.com and www.galectin-3.com.

The BG Medicine Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10352

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 regarding: our progress toward the commercialization of our products and expectations regarding our revised commercial strategy; our progress in preparing for the launch of the automated versions of our galectin-3 test by our partners; our expectations regarding the timing of the launch of automated versions for our galectin-3 test in Europe; our expectations regarding our automated platform partners plans and timing for filing 510(k)'s for their automated versions of the galectin-3 test; our plans regarding a label extension and second indication for our galectin-3 test; our expectations for our business operations and outlook; our beliefs regarding the importance of our galectin-3 test to heart failure patients; and our expectations regarding the timing of the launch of CardioSCORE in Europe. 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 history of operating losses; our ability to generate sufficient product revenue to sustain our commercial diagnostics business; our estimates of future performance, including the expected timing of the launch of our products; 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 our clients; 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; 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 ability to successfully obtain sufficient supplies of samples for our biomarker discovery and development efforts; our estimates regarding anticipated operating losses, future revenue, expenses, capital requirements and our needs for additional financing; our ability to recruit, hire and retain qualified personnel; and the limited public float and trading volume for our common stock and volatility in our stock price; and other factors discussed under the heading "Risk Factors" contained in Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2011, and as amended and restated in our Final Prospectus Supplement dated January 25, 2013, each filed with the Securities and Exchange Commission. 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
Consolidated Statements of Operations
         
  Three Months Ended Year Ended
  December 31, December 31,
  2012 2011 2012 2011
  (in thousands, except share and per share data)
  (unaudited)
         
Revenues:        
Product revenue  $ 978  $ 307  $ 2,570  $ 451
Service revenue  94  72  245  1,183
         
Total revenues  1,072  379  2,815  1,634
         
Costs and operating Expenses (1):        
Cost of product revenue  289  124  841  172
Cost of service revenue  (35)  67  116  447
Research and development   (80)  1,988  7,582  7,998
Sales and marketing  2,063  1,605  9,451  5,293
General and administrative  1,440  1,330  7,553  5,209
         
Total costs and operating expenses  3,677  5,114  25,543  19,119
         
Loss from operations  (2,605)  (4,735)  (22,728)  (17,485)
         
Interest income  5  6  22  31
Interest expense  (304)  1  (1,083)  (89)
Other income (expense)   5  (6)  20  (39)
         
Net loss  (2,899)  (4,734)  (23,769)  (17,582)
         
Accretion of redeemable convertible preferred stock  --   --   --   (118)
         
Net loss attributable to common stockholders  $ (2,899)  $ (4,734)  $ (23,769)  $ (17,700)
         
Net loss attributable to common stockholders per share - basic and diluted  $ (0.14)  $ (0.23)  $ (1.18)  $ (1.00)
         
Weighted-average common shares outstanding used in computing per share amounts - basic and diluted  20,508,587  19,721,852  20,215,956  17,638,139
         
         
(1) Included in operating expenses for the three months ended December 31, 2012 were reversals of accrued expenses totaling $2.4 million, comprised of R&D expenses of $1.5 million and bonus expense of $800,000. These adjustments were partially offset by $700,000 of severance expenses.
         
Also included in operating expense for the three months ended December 31, 2012 were non-cash charges of $569,000 including $457,000 of stock-based compensation expense and $63,000 of depreciation and amortization expenses, compared with non-cash charges for the same period in 2011 of $672,000 including $578,000 of stock-based compensation expense and $90,000 of depreciation and amortization expenses.
         
Also included in operating expenses for the full year ended December 31, 2012 were non-cash charges of $2.8 million, including $2.3 million of stock-based compensation expense and $273,000 of depreciation and amortization expenses, compared with non-cash charges for the same period in 2011 of $2.4 million, including $1.9 million of stock-based compensation expense and $420,000 of depreciation and amortization expenses.
         
BG Medicine, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
     
  As of As of
  December 31, 2012 December 31, 2011
  (in thousands)
  (unaudited)
Assets    
Current assets    
Cash and cash equivalents  $ 12,786  $ 23,874
Restricted cash  390  565
Accounts receivable  395  115
Inventory  447  212
Prepaid expenses and other current assets  558  550
     
Total current assets  14,576  25,316
     
Property and equipment, net  197  301
Intangible assets, net  372  456
Deposits and other assets  96  37
     
Total assets  $ 15,241  $ 26,110
     
Liabilities and Stockholders' Equity    
Current liabilities    
Term loan, current portion  $ 3,245  $ -- 
Accounts payable  1,110  487
Accrued expenses  3,549  3,348
Deferred revenue and customer deposits  411  1,368
     
Total current liabilities  8,315  5,203
     
Term loan, net of current portion  6,612  -- 
Other liability  5  15
Stockholders' equity  309  20,892
     
Total liabilities and stockholders' equity  $ 15,241  $ 26,110
     
BG Medicine, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
     
     
  Full Year Ended December 31,
  2012 2011
  (in thousands)
  (unaudited)
     
     
Net cash flows from operating activities  (21,333)  (14,966)
     
Net cash flows from investing activities  (85)  (93)
     
Net cash flows from financing activities (1)  10,330  36,508
     
Net (decrease) increase in cash and cash equivalents  (11,088)  21,449
     
Cash and cash equivalents, beginning of period  23,874  2,425
     
Cash and cash equivalents, end of period  $ 12,786  $ 23,874
     
(1) For the full year ended December 31, 2012, cash flows provided by financing activities include proceeds from the $10.0 million term loan. For the full year ended December 31, 2011, cash flows provided by financing activities include net proceeds of $36.1 million from the initital public offering.
CONTACT: Chuck Abdalian
         EVP & Chief Financial Officer
         (781) 434-0210

BG Medicine Inc. logo

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