Thursday, July 7, 2011

Biosensors International Group rated 'buy' by OCBC

Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.
Research House: OCBCPrice Call: BUYTarget Price: 1.60



OCBC Investment Research in a July 6 research report says: "We believe that Biosensors Int'l Group (BIG) could potentially benefit from recent news that Johnson & Johnson (J&J) is exiting the drug-eluting stent (DES) market by end 2011.

"BIG had highlighted during its FY11 teleconference call that it is growing at six times of what the overall market is growing, which implies that BIG was already capturing market share from its competitors prior to J&J's announcement. BIG's next re-rating catalyst could come from obtaining approval from China's State Food and Drug Administration for its BioMatrix family of DES.

"We understand that progress is being made and approval could be imminent, given positive clinical trial results and China's rising demand for stent treatments. Our DCF-based fair value estimate of $1.60 implies a potential upside of 19.0%. MAINTAIN BUY."

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