BG Medicine IPO Expects $71M in IPO
12/13/2010 8:03:29 AM
Boston Business Journal - by Kyle Alspach -- BG Medicine Inc. is expected to announce an initial public offering of up to $71.2 million next week, according to IPO tracker Renaissance Capital.
The Waltham, Mass.-based developer of biomarker-based diagnostic tools is expected to price the roughly 4.7 million shares in the range of $13 to $15, according to Renaissance Capital. BG Medicine is seeking to sell its shares on the Nasdaq Stock Market under the symbol “BGMD.”
The company expects to use up to $25 million of the net proceeds from the offering to fund the commercial launch of its lead product, BGM Galectin-3, according to a filing with the U.S. Securities and Exchange Commission. The company received approval from the U.S. Food and Drug Administration for the cardiac test in November.
BG Medicine also plans to use up to $15 million from the offering to fund development, potential regulatory submission and potential commercial launch activities for other cardiovascular diagnostic products, according to the SEC filing.
BG, founded in 2000, first filed for an $80 million IPO on Euronext in August 2007, before abandoning it just a few months later, in January 2008. The company re-filed for an IPO with the SEC in January.
BG Medicine reported revenue of $620,000 and a net loss of $13.8 million for the first nine months of the year, according to the SEC filing.
Flagship Ventures is the largest pre-IPO shareholder. The Cambridge, Mass.-based venture firm holds 44.4 percent of the company’s value, and Flagship partner Noubar Afeyan is the chairman of BG’s board.
The next-largest shareholder is the Gilde Europe Food and Agriculture Fund BV, with 14.6 percent. Other investors include GE Asset Management, Humana Inc., Koninklijke Philips Electronics N.V., Legg Mason Capital management and SMALLCAP World Fund.