Biosensors

Biosensors: Possible positive sentiments after grp note that it has achieved CE Mark approval for its polymer-free drug-coated stent (DCS), BioFreedom™. The trial will provide additional data to support the launch of BioFreedom in select markets during 2013. The full commercial launch is currently anticipated during 2014 Meanwhile, CIMB had a report out on grp, maintaining its O/P Rating with $1.75 TP. House note of investors concerns that the effects of lower licensing fees in Japan could linger on in 3Q13, and if the Japanese yen weakens further, BIG may begin to feel the pinch. Japan accounts for about 19% of its revenue. However anticipated pricing pressure in the Chinese DES market has been milder than expected. Understand that since the 2 hospital tender exercises in Gangsu and Zhejiang provinces, things remain in status quo. Despite possible pricing pressure in the Chinese DES market, the vol growth alone in China and gross-margin advantages could bring BIG’s net margins back to the low-mid-30s. Add that with grps recent fund raising exercise last week, a $300m 4.875% fixed-rate note due 2017, believe a substantial accretive acquisition could be in the making. The US is still missing from BIG’s atlas. With North American holding 56% of the global DES market, BIG hopes to secure its footing there eventually. House do not rule out strategic partnerships with established players, though acquisitions will give BIG an immediate footprint in this particular market.