OCBC ups Biosensors target to $1.48; keeps buy

Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.
Research House: OCBC

OCBC Investment Research has raised its target price for Singapore medical technology firm Biosensors International (BIOS.SI) to $1.48 from $1.32 and maintained its buy rating.

Terumo Corp (4543.T) had received approval to sell in Japan the Nobori drug-eluting stent, which uses Biosensor’s technology and proprietary drug in exchange for royalty payments. 

OCBC said it had raised its revenue and core earnings forecasts for Biosensors’ financial year ending March 2012 by 7.3% and 10.6%, respectively, on the back of approval for the Nobori stent.

The drug-eluting stent market in Japan is estimated to be worth around US$600 million ($754.6 million) and is currently dominated by four U.S. medical technology giants, but OCBC said this is now likely to change following Nobori’s approval in the country.

The brokerage cited the safety and efficacy of Biosensors’ drug-eluting stent technology, as well as Terumo’s ability to leverage on Japanese physicians’ loyalty given that it is the first local firm to roll out a drug-eluting stent.

At 9:31 a.m., Biosensors shares were flat at $1.25 on a volume of 675,000 shares.