Biosensors

Biosensors: Deutsche Bank views increasing visibility on Chinese drug-eluting stent pricing is set to remove some of the risk for manufacturers after Zhejiang became the first province to cut average selling price by slightly more than 15%. House expects the tender process to last 3-4 quarters, offering better visibility on segment growth, anticipating growth to deteriorate in 3Q12, and recover in 3Q13. It continues to expect a 15-20% DES price cut, which is negative to DES manufacturers. However, it opines that the risk is well reflected in stock prices already. Additionally, price cuts on imported DES could result in re-distribution of market share between MNCs and domestic players. Notes 33% of Biosensors' total revenue was generated from China DES sales. The house does not have any rating on the stock.