Biosensors: Credit Suisse cuts FY13-14e EPS by 13% and 19% rptvly. Says Abbott received XIENCE PRIME Drug Eluting Stent approval in Japan last wk. Together with the potential impact from recent DES price cut of 14.5% wef 1 Apr 2012, notes Biosensors may receive a smaller royalty revenue and net profit contribution from Terumo in FY13.
The house revises TP to $1.80 from $2.00, based on 15.5x FY14e EPS, but maintains Outperform. Recommends investors to accumulate during current weakness. Believes the invmt thesis to drive value by diversification of its pdt portfolio remains intact, with new M&A, and earlier than expected launch of Bio Freedom as catalysts.
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