It's alredi 1.155. I bought at 1.04 after your call. It can go above 1.23, which is the support level for the past few mths. Thanks Trader for the call. Good luck to you and all.
Biosensorsâ share price has taken a beating from earnings worries following news of |Terumoâs weak licensing fee to BIG. Management shrugged it off as a 2Q blip and reiterated its strong revenue guidance. 2Q/1HFY13 core net profit was broadly in line, at 23%/46% of our full-year forecasts and 20%/39% of consensus numbers.
|Nevertheless, we cut FY3/13 earnings and our SOP target price to reflect the risk of |weaker licensing income from Japan and potential price cuts in various countries.|This does not affect our Outperform call as product profitability remains strong and valuations are really palatable now. Tgt. S$1.79
BioSensors reported the 2Q13 result today, with rev +28%. Drug-eluting stent (DES) sales remained strong in Europe with double-digit growth, despite the global market size seeing a single-digit decline. Licensing revenue from Terumo declined 29% YoY but it seems to be a temporary dip due to competing products launched in 1H12 but no more launches are expected in 2H12. The renewed contract term with Terumo is better than before as it has downside protection plus unlimited upside. Gross margin increased from 80.7% to 83.7% on a YoY basis. DES will account for a higher portion of total revenue, and CS expect the improvement in gross margin to be sustainable if it could continue the product mix changes. Globally, DES market continues to shrink. Boston Scientificâs DES rev saw a 24% YoY decline in 3Q12. Although Biosensors still has a much smaller market share than Abbott and Boston Scientific in the global mkt, itâs DES revenue continues to grow above 10%. Ratings as follow: CS maintains O/p with $1.80 TP. OCBC maintains Buy with $1.69 TP
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