Biosensors

Biosensors: Abbott’s Xience Xpedition, a next generation drug eluting stent (DES), has been approved by Japan’s Ministry of Health, for the treatment of coronary artery disease (CAD), the most common form of heart disease. The Xience Xpedition’s enhanced deliverability, combined with its broadest size matrix in the Japanese market for more accurage vessel sizing, will help physicians in Japan address a wide range of patients with CAD. Nomura anitipcates further market share decline in Japan for Biosensor’s Nobori with competitors’ launch of new products. Since achieving 30% market share after pdt launch in May ’11, Nobori’s market share has halved to an estimated 16-17% as of 1Q13. As Biosensors does not have a guarantee for minimal royalty payment, the house revises EPS forecasts downward, which now translates to no earnings growth for FY14e. Nomura continues to anticipate stock volatility ahead as Biosensors is likely to miss consensus in the following quarters. Reduces TP to $1.15 (from $1.30), maintains Hold rating.