BG Medicine Files for $80 Million IPO
BG Medicine, a molecular diagnostics company based in Waltham, MA, announced today that is planning an IPO on Euronext Amsterdam under the symbol “BGMDX.” The registration statement that BG filed with the SEC said the company would seek to raise up to $80 million through the offering, though it didn’t specify the number of shares to be offered or the target price range.
BG, founded as Beyond Genomics in 2000 (the name was changed in 2004), has raised $52.1 million in financing since its inception, according to the SEC document. Major investors include Flagship Ventures of Cambridge and Gilde Investment Management of The Netherlands, as well as strategic partners that include Waters Corporation and Royal Philips. Flagship managing director Noubar Afeyan is a BG founder and executive chairman of the board.
The decision to trade on the Amsterdam exchange reflects the background of the company and its management, chief financial officer Mark Shooman said today. CEO and President Pieter Muntendam is from The Netherlands, as are several members of the company’s advisory board, including scientific founder Jan van der Greef. The SEC filing indicates that BG plans to build a lab facility at the Philips High Tech Campus in Eindhoven. And in January, the company announced that it is joining with Philips Medical Systems, AstraZeneca, Merck, and Humana to try to discover biomarkers for early detection of coronary artery disease. According to the SEC filing, the Dutch giant made an equity investment in BG as part of its strategic partnership and currently holds 6.5 percent of its stock. The largest single investor is listed as “entities affiliated with Flagship Ventures,” with 48.8 percent of BG stock.
The filing indicates that BG currently has the capacity for 16 to 20 new discovery projects per year, and can gather enough data do determine whether to move forward with a given project within an average of about 120 days. BG’s first product could come “as soon as 2009,” according to the SEC document. The company reported 2006 operating revenue of just over $6 million, with a net loss of $4.7 million. Revenues for the first three months of 2007 totaled $1.9 million, with a net loss for the quarter of $1.5 million.