Biosensors

Biosensors: Nomura notes the share price of Biosensors has been weak over the past week, ahead of its results release on 7 Nov. Cites the following possible reasons for the price weakness: 1) Weak Nobori sales in Japan: Terumo announced its 2Q results on 30 Oct, showing Nobori sales declined 10% qoq due to increased competition from the introduction of a new stent by a competitor in Japan. In particular, Nobori sales in Japan were down 25% qoq although Nomura expects sales to rebound strongly in 2H. 2) New product competition: Boston Scientific announced overnight that it received CE Mark for its biodegradable polymer stent (Synergy) with a planned full launch in the EU and Asia in 2014. Although Biosensors could see new competition from Boston Synergy’s stent, the stent is only likely to be fully commercialized in 2014. In addition, Biosensors already has a 5-year head start in terms of marketing and clinical data. Nomura reiterates Buy with TP $1.80. Says with the share price now at FY14e PE of 10x, share price weakness an over-reaction. Tips Biosensors should report 2Q net profit of ~US$28m, flat qoq on a pre-exceptional basis.