Biosensors

Biosensors: 4QFYMar12 results in line, above mgt’s previous guidance. Net profit at US$28.6m, on the back of a 98% jump in revenue to US$88m. While revenue and gross profit were ahead of expectation, higher SG&A and R&D costs brought the numbers more in line. OCF rose to US$32.4m, +143% yoy. Product revenue grew 65% yoy in 4Q, with strong growth recorded in EU / EMEA and China (consolidation of JWMS). China saw qoq growth and did not see destocking in the channels. Licensing and royalties revenue jumped 378% yoy to US$22.8m, as Terumo gained market share in Japan to ~30% presently. Mgt guides for revenue growth of 20-30% for FY13, driven by continued strong DES revenue growth as well as modest licensing and royalty revenue increase. Mgt expects the overall FY13 profitability, excl exceptional items, to increase but anticipates that the higher revenues will be partially offset by increased expenses required to support revenue growth and devt of future pdts. Also acknowledges potential price decline in FY13, but did not provide further numbers. The stock trades at 15x P/E (before exceptional items).