Biosensors

Biosensors: Mgmt indicated that it will continue to be on the lookout for M&A opportunities to grow the group into a global medical devices platform group. The acquisition of Spectrum Dynamics (SD) provides an opportunity for the group to broaden its offering in the cardiovascular space. The SD imaging machine could potentially help doctors ascertain the appropriate treatment for patients with heart disease. A trial is being conducted in Japan to confirm the applications that the SD imaging machine can offer. As at 31 March 2013, Biosensors has a net cash position of US$337m. Management appeared confident of its guidance of 15% growth in product revenue, underpinned by its core DES business as it gains market share in spite of a stagnating global DES market. Biosensors will launch 4 new products this year including Biomatrix Neoflex, BioFreedom and two balloon catheters under license from Eurocor. Through joint marketing efforts with Terumo, Biosensors hopes to stabilize its market position in Japan and improve sales. Plans are underway to seek regulatory approval for BioFreedom in Japan. Nomura reiterate its BUY rating for Biosensors with price target of $1.80. The counter look attractively valued at 12x FY2014 EPS with an earnings CAGR of 11% over the next 3 years.