DJ MARKET TALK:Biosensors Off 4.1%;OCBC Cuts Fair Value To S$1.04 (2008/05/27 09:30AM)

 
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Biosensors International Group: Tectonic movements

Summary: Biosensors International Group (Biosensors) Biosensors
 reported a
29% increase in FY08 revenue to US$44.3m as product sales rose 14% and
 it
started to reap significant licensing revenue. It remained in a
 loss-making
position but that narrowed 17% to -US$30m. Biosensors took its maiden
 sales
of its newly approved BioMatrix DES and has reported strong clinical
interest from its recent symposium at a key clinical conference (EURO
 PCR).
In a bold move to streamline operations, Biosensors will be closing
 down
its manufacturing facilities in Newport Beach, USA and Eindhoven,
Netherlands, thereby saving US$7-9m/year in operational expenses.
Biosensors continues to be confident that their bid for the acquisition
 of
JW Medical in China will clear regulatory authorities. We tweak our
 FY09
and FY10 figures to cater for better guidance. As such, our fair value
 is
lowered in tandem with the lower FY10 targets to S$1.04 (vs. S$1.23).
 We
continue to get good vibes on its new management team as it delivers on
 its
past promises. Maintain BUY.

This company made US$20m profit when it was listed. The primary cause of yearly losses is due to CE delay. No one expected CE to be delayed for 2 extra years so that is why BIG bled money for 2 years. 

There are many blue chip counters with share price trading at 3 times NTA also. From FY2009, the pre-earnings stage of this company is over.

The failed demo in a local hospital that you mentioned is refering to a SingLive demo by the "drug balloon method", not Biomatrix. Many other new alternative methods can boast whatever claims they want but until they can come out with a beautiful set of clinical results, these are just wild claims.