BG Medicine (NASDAQ:BGMD) is a biopharmaceutical company which develops and sells diagnostic tests. These tests use biomarkers in blood tests and provide physicians which better information and accuracy on the potential disease states of patients. BG Medicine has received Food and Drug Administration (FDA) approval for one of its tests and has submitted another for approval.
BG Medicine uses patient samples and data from partnerships to identify potential biomarkers the show up repeatedly for different diseases. Once they have been identified, the company builds tests to accurately measure the presence of the biomarker and runs samples to see if the biomarker is indeed relevant. After going through up to Phase III in tests, the company then submits the test to the FDA for approval.
The company's initial public offering of stock on the NASDAQ occurred on February 3, 2011. The company offered 5M shares each for $7. The inital price range was $13-$15, but the company halved the offer price. This brought the deal size to $35M. The company had originally planned to go public in December of 2010, but decided to postpone. The lead underwriter of the deal was Lazard (LAZ).
For the full year 2009 the company reported a total revenue of $8.5M. During the first 9 months of 2010, the company's total revenue was $.6M. For 2009, the company had a net loss of $16M. For the first 9 months of 2010, the company had a net loss of $14M. Because the company is still heavily the in the Research & Development phase, approximately 34% of the company's costs are due to research and development.