Dallas, Texas 01/06/2014 (FINANCIALSTRENDS) – BG Medicine, Inc. (NASDAQ:BGMD), the $41.88 million market capped bio-tech firm has recorded a huge 37.75 percent increase in its market value during trading on January 3. This takes the appreciation the stock holders of this development stage drug maker have experienced in the past one month to a staggering 154 percent.
CMS Announces Increase In Cap on Blood Test Reimbursements
The big jump in the investor sentiment of this stock is linked to the announcement made by the drug maker that the regulatory authority Centre for Medicare and Medicaid Services (CMS) had revised upwards the national price limit on conducting the Galectin-3 blood test. The upwards revision of the coast of these blood tests have been pretty steep from its previous $17.8 per test to the new $30.1 per test. The Galectin tests are conducted on individuals to determine if they are suffering from any heart related ailment. This is possible, as the Galectin protein is an active biomarker which is scientifically linked to heart failure and detecting it in advance will allow doctors to begin precautionary treatments to the suspect patients well in advance, even before any of the heart ailment symptoms start to show up.
How Does The Price Increase Impact BG Medicine, Inc. (NASDAQ:BGMD)?
Readers should note that BG Medicine, Inc. (NASDAQ:BGMD) has positioned itself as a developer and manufacturer of “cardiovascular diagnostics” devices and procedures and has been working on getting approval for a blood test model which is “multi-analyte biomarker-based blood test” which will help predict “atherothrombotic cardiovascular diseases”.
The increase in the cap on the pricing is for Medicare and Medicaid reimbursements that patients who undergo these tests are likely to get paid on undergoing such tests and hence reflect a big increase in the potential of BG Medicine, Inc. (NASDAQ:BGMD) to earn additional revenue.