CIMB Research cut its target price for medical device maker
Biosensors International Group Ltd to S$1.79 from
S$1.82 and kept its 'outperform' rating, citing risks of weaker
licensing income from Japan and potential price cuts in other
Biosensors shares were down 1.3 percent at S$1.125, and have
plunged 21 percent since the start of the year, compared with
the 26 percent rise in the FTSE ST Mid Cap Index.
Biosensors said on Wednesday its second-quarter net profit
rose 22.7 percent to $28.2 million from a year earlier, helped
by higher product revenue.
The brokerage cut its earnings estimates for Biosensors for
2013, but noted that its product profitability remains strong
and valuations are at an attractive low level.
CIMB said Terumo Corp, which licenses Biosensors'
drug-eluting stent technology for a royalty fee, has stated that
it will be fighting to claw back market share lost, which should
offer respite to Biosensors' licensing revenue.
Biosensors maintained its expectations that 2013 revenue
will grow at 20-30 percent, as a royalty agreement negotiated
with Terumo should offset competition and any mandatory price
cut, CIMB said.
0904 (0104 GMT)