BG Medicine (NASDAQ:BGMD) is a developing stage biotech company focused on the development and commercialization of molecular diagnostics with regard to biomarkers. The company is expected to issue a public offering this week.
All quotations are from the company’s most recent S-1 filing with links provided.
We are an early stage life sciences company focused on the discovery, development and commercialization of novel molecular diagnostics based on biomarkers to improve patient outcomes and contain healthcare costs. We discover biomarkers and are developing molecular diagnostic tests based on biomarkers that are intended to provide information to physicians that will improve patient treatment decisions. We are designing our molecular diagnostic tests to predict a patient's response to a drug therapy
Offering: 4.5 million shares at $8.00 - $10.00 per share. Net proceeds of approximately $35.1 million will be used to fund assay and clinical development, regulatory submission and potential launch activities; biomarker discovery, development and potential regulatory submission; for establishing the infrastructure necessary to support the potential launch and commercialization of our molecular diagnostic product; for marketing and distribution; and other general corporate purposes.
Lead Underwriters: Cowen and Co., Leerink Swann
Revenue increased by 100%, or $3.3 million, from $3.3 million in the nine months ended September 30, 2006 to $6.6 million in the nine months ended September 30, 2007… R&D expenses increased by 62%, or $3.6 million, from the nine months ended September 30, 2006 to the nine months ended September 30, 2007… G&A expenses increased by 75%, or $1.3 million, from the nine months ended September 30, 2006 to the nine months ended September 30, 2007… Gain on sale of property and equipment was $119,000, in the nine months ended September 30, 2007 compared to $0 in the nine months ended September 30, 2006 …Interest income for the nine months ended September 30, 2007 increased by $97,000, to $101,000, from $4,000 in the nine months ended September 30, 2006…Interest expense for the nine months ended September 30, 2007 decreased by 79%, or $406,000, to $105,000 from $511,000 in the nine months ended September 30, 2006.
The molecular diagnostics industry is highly competitive and subject to rapid change. Our competitors include a number of large, well-established diagnostic companies and laboratory service providers, as well as an increasing number of new companies entering the market. Many of these competitors have financial and other resources substantially greater than our own. In addition, many of our competitors have substantially greater experience in developing and commercializing diagnostic products than we have.
Established diagnostics companies, such as Abbott Laboratories (NYSE:ABT), Beckman Coulter (NYSE:BEC), F. Hoffmann-La Roche, General Electric (NYSE:GE), Johnson & Johnson (NYSE:JNJ), Mitsubishi, Philips (NYSE:PHG) and Siemens (SI) have expanded into the molecular diagnostics area to complement their legacy routine testing businesses. In addition, commercial laboratories with extensive service networks for diagnostic tests, such as Laboratory Corporation of America (NYSE:LH) and Quest Diagnostics (NYSE:DGX), have expanded their testing capabilities to include molecular diagnostics. Specialized laboratories, such as Genzyme Genetics (GENZ) and Myriad Genetic Laboratories (NASDAQ:MYGN), also offer molecular diagnostic testing services.
Recent entrants to the field include companies that have developed new enabling technologies. We have identified a number of companies with competing technologies and approaches in molecular diagnostics. Companies that may compete with us in our current areas of focus, cardiovascular disease, oncology and CNS, include Agendia, Athena Diagnostics, Biosite, Celera Group of Applera Corporation (NASDAQ:CRA), Dako, diaDexus, Genomic Health (NASDAQ:GHDX), Oncomethylome Sciences and Vermillion (NASDAQ:VRML).