Capital Health Accountable Care Organization LLC Adopts BGM Galectin-3(R) Test

Network of Laboratories in U.S. Offering BGM Galectin-3Test Expanded

Full-Year 2013 Product Revenue and Cash Burn Guidance Confirmed

WALTHAM, Mass., Nov. 6, 2013 (GLOBE NEWSWIRE) -- BG Medicine, Inc. (BGMD), the developer of the BGM Galectin-3 Test, today reported financial results for the third quarter of 2013.

The Company reported product revenues of $1.0 million, a 65% increase from the $0.6 million in revenues reported in the third quarter of 2012. Net loss for the third quarter was $3.7 million, a 46% improvement from the $6.8 million net loss reported in the third quarter of 2012. Operating expenses in the quarter declined by 42% from the same period in the prior year. Net loss per share in the quarter was $0.13 compared to $0.34 for the third quarter of 2012. Operating cash burn decreased by $1.5 million, a 27% decrease, to $4.0 million compared to $5.5 million in the same period of 2012.

"We continue to make significant progress in addressing the fundamentals of our business," said Paul R. Sohmer, M.D., President and Chief Executive Officer. "We believe that we are setting the table for our go-forward success."

Q3 2013 Highlights

"We expect to drive adoption of the BGM Galectin-3 Test and grow our near-term revenues by leveraging: 1) the new CMS payment rate; 2) demand from physicians, health care provider groups, such as accountable care organizations and community health improvement collaboratives, hospitals and regional clinical laboratories; 3) the expanding network of laboratories offering galectin-3 testing; 4) the utility of our current FDA cleared and CE Marked indications for use; and 5) clinical research data that affirm the near-term significance of galectin-3 testing for patients with chronic heart failure," Dr. Sohmer continued. "Longer term, we expect to grow revenues from the future introduction of new patient selection tools that may incorporate new clinical indications for the BGM Galectin-3 Test, as well as, other biomarkers or combinations of biomarkers that we identify from our analyses of appropriate clinical cohorts, including the BG Medicine sponsored BioImage Study."

For the nine months ended September 30, 2013, product revenues grew 76% to $2.8 million from the $1.6 million reported for the same period in 2012. Net loss per share was $0.52 in the first nine months of 2013 compared to $1.04 for the same period of 2012. Operating cash burn decreased by $3.7 million, a 22% decrease, to $12.8 million in the first nine months of 2013 compared to $16.5 million in the same period in 2012. At September 30, 2013, the Company's unrestricted cash and cash equivalents totaled approximately $11.3 million.

"We will continue to aggressively manage our spending," added Dr. Sohmer. "Notwithstanding our ongoing commercial and development activities, we expect to continue to reduce our operating expenses. In fact, we believe that operating expenses in 2014 will be approximately 33% lower than what we are currently forecasting for the full year 2013. In addition, we will now consider our options for financing."

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BG Medicine Reports 2013 Third Quarter Financial Results