Biosensors

Biosensors: Nomura reiterates Buy with TP $1.80, says valuations look attractive at 11x FY14e P/E. Notes share price may have been hampered by concerns about its M&A ambition, even though mgt highlighted that M&A will focus on targets that have good growth potential, are profitable and scaleable. Also believes that concerns about licensing revenues from Japan post its 3Q12 results are discounted. Sees a win-win arrangement with Terumo, following the ending of its licensing agreement with Terumo by Apr 2016. Biosensors will build its own DES marketing team there. In addition Terumo will assist Biosensors with approval for a new stent in Japan. This arrangement will allow Biosensors to tap the Japan DES market directly from mid-2016. Separately Maybank KE also reiterates Buy with TP $1.38. Says the fundamental growth story of Biosensors has not changed. Its clinically proven BioMatrixTM drug-eluting stent (DES) has the potential to steal market shares from established medical device companies, and has a next gen stent (BioFreedom) in the pipeline. Notes Biosensors’ strong China element, and sees catalysts in further penetration of this market. Biosensors shares continue to be supported by their recent share buyback initiation, with 19.8m shares repurchased at $1.08- 1.17 /sh.