Biosensors reported a strong set of 4Q10 results which were above mkt expectation. Net profit surged to US$9.1m (partly helped by a US$2.4m contribution from its 50%-owned JW Medical Systems) while total product sales in the 4Q were US$29.9m (+46% YoY), driven largely by robust growth in the sales of the BioMatrix drug‐eluting stent across all regions. We believe the Co is close to reaching its target of a 10% share of the drug eluting stent (DES) mkt.
Looking ahead, mgmt believes that product revenue, excluding licensing and royalty revenues, will range between US$135.0m and US$145.0m. In addition, the Co expects overall profitability to grow over FY10 levels despite the effect of higher revenues may be partially offset by increased R&D expenses. We continue to see Biosensors as an attractive takeover target by other bigger incumbents.
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