Biosensors assigned ‘buy’ rating – OCBC
OCBC Investment Research said it has initiated coverage of Biosensors International Group with a “buy” call and a fair value of 1.05 sgd on the company’s positive outlook given the likelihood of regulatory approval for its BioMatrix drug-eluting stent (DES) and higher sales of its biodegradable DES technology. “We forecast that regulatory approval for Biosensors’ Biomatrix will come in the first quarter of next year. As such, we see a jump in DES sales to start in the year to March 2008,” OCBC said in a note.
For the year to March 2007 and 2008, OCBC forecasts DES sales at Biosensors to grow 101 pct and 388 pct year-on-year, respectively. The brokerage also noted that the positive clinical feedback for the company’s DES technology and its recent collaborative agreement with JW Medical Systems to market DES products in China bode well for Biosensors as it works towards a polymer-free DES and benefit from the lower manufacturing costs and JW Medical’s distribution networks in china.
