Biosensors

Biosensors: stock may see near term headwinds, with Deutsche highlighting more competitive drug eluting stent (DES) launches, i) Boston Scientific held an analyst event yday, detailing new DES launches for its PROMUS Premier (just received CE Mark, to launch in EU in next few wks, full launch in 2Q13), and SYNERGY (next gen DES with ultra-thin bioabsorbable polymer, limited launch in EU in 4Q12, full launch in 2014), and ii) Abbott launched XIENCE Xpedition in EU last Aug, US in Jan ’13, and expects Japan launch in mid-yr. Deutsche believes competitors’ launches would be negative to the EU and Japan territories that Biosensors’ licensed pdt, Terumo is exposed to, as Terumo does not have follow on DES launches in a highly demanding market with a limited life cycle. Recall, Terumo had experienced market share loss for 6 consecutive quarters. Deutsche also anticipates EU growth to moderate for Biosensors’ BioMatrix Flex, particularly as the pdt approaches the plateau of its life cycle. The house reiterates its Hold rating with TP $1.30.