SGD Corp Special : Biosensors Intl Group

Stock price down 12.5 cts today, a 12% drop.

Nothing to do with Singapore’s GDP number today, I suspect.. GDP did well coming at +3.8% YoY  (vs expected +3.7%) and +15.5% QoQ (vs expected +15.2%).

SGX : Biosensors Intl. 1Q Rev. Down 11%

Cut to HOLD by DBS Vickers and OCBC Investment Research today.

Poor earnings and its is uncanny that I just sent Zico some stuff I dug up on them last Thursday.

October 2012
“Percutaneous coronary interventions (PCIs) may continue to decline in  the next two years in the U.S., according to Volcano Corp., due to the continued  adoption of imaging technologies to screen for patients that truly benefit from the procedure. Continued PCI declines would hurt drug-eluting stent (DES) makers such as Boston Scientific and Medtronic.

U.S. percutaneous coronary intervention (PCI) procedures declined 5% yoy in 1H, as use of fractional flow reserve (FFR) imaging to test for necessity of the procedure increased. FFR penetration rose 525 bps, above the 200-bp average in 2011, according to Millennium Research Group. Lower PCI volumes and prices in the U.S. may hurt stent makers in 3Q.”

Biosensors in the business of durg-eluting stents and the outlook is not too hot for 2Q !

15 Jul 2013
“Interventional cardiology companies will be aided by easing comparisons in 2Q as Japanese price cuts ranging from mid-single digits to low teens took effect 2Q12, though the companies face a 19% yoy weakening of the yen (500-bps worse than 1Q). Drug-eluting stent (DES) prices declined 11.5% on average due to the cuts, according to Millennium Research Group.” Source : Bloomberg

BIOSENSORS SGD 4.875% 01/2017 going at 100.70/101.30 today.