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Biosensors Reports Continued Strong Sales and Earnings Growth in the Third Quarter of Fiscal Year 2012

Wed, 02/08/2012 - 3:45am
The Associated Press

/FROM PR NEWSWIRE DALLAS 888-776-3971/

STK Singapore:B20 OTC-PINK:BSNRY

IN HEA MTC FIN MEQ PHA

SU SLS ERN

TO BUSINESS, HEALTH, AND MEDICAL EDITORS:

Biosensors Reports Continued Strong Sales and Earnings Growth in the

Third Quarter of Fiscal Year 2012

SINGAPORE, Feb. 8, 2012 /PRNewswire-Asia/ -- Biosensors International

Group, Ltd. ("Biosensors" or the "Company", Bloomberg: BIG SP;

Reuters: BIOS.SI; SGX: B20), a developer, manufacturer and marketer of

innovative medical devices for interventional cardiology and critical

care procedures, today announced financial results for its third

fiscal quarter ("Q3 FY12") and nine months ended 31 December 2011

("FY12 nine-month period").

Q3 FY12 Performance Highlights:

-- Robust total revenue of US$84.8M, almost doubling that of the same

period last year

-- Terumo Corporation, the Company's licensing partner in Japan,

continued to record strong revenue growth for its Nobori drug-eluting

stents ("DES"), resulting in a more than four-fold year-on-year

increase in licensing revenue for the Company

-- Full-quarter financial results for JW Medical Systems Ltd. ("JWMS")

included, following its successful consolidation

-- Sales of Interventional Cardiology Products ("IVP") recorded a

year-on-year increase of 72% to US$58.7M, primarily driven by the

Company's flagship BioMatrixT family of DES and the inclusion of JWMS'

results

-- Net profit excluding exceptional items increased 80% year-on-year

to US$26.8M

-- Four-year results from the LEADERS trial presented at the

Transcatheter Cardiovascular Therapeutics (TCT) conference in November

showing improved long-term clinical outcomes for BioMatrix FlexT in

comparison to a sirolimus-eluting stent. The results were also

published by leading medical journal The Lancet

"We are delighted to report another strong quarter, driven by

continued product revenue increase, robust licensing revenue from our

partner Terumo and aided by the successful consolidation of JWMS,"

commented Co-CEO Mr. Jeffrey B. Jump. "The recent four-year LEADERS

trial data we presented at TCT are significant for Biosensors -- they

validate our long-standing belief that we have an innovative product

with long-term clinical benefits. We are committed to maintaining our

focus on developing advanced products with pioneering technologies."

For Q3 FY12, Biosensors reported total revenue, including licensing

and royalties, of US$84.8 million, a 99% increase over the US$42.6

million reported in the third quarter of fiscal year 2011 ("Q3 FY11").

IVP sales rose to US$58.7 million, up 72% from US$34.2 million in Q3

FY11, largely due to the full-quarter consolidation of JWMS' result

and continued growth in sales of the Company's BioMatrixT family of

DES. Sales of critical care products ("CCP") reached US$4.0 million,

an increase of 10% from US$3.6 million in Q3 FY11.

Licensing and royalties revenues in Q3 FY12 grew to US$22.0 million, a

year-on-year increase of 366% from US$4.7 million.

Gross margins on total product sales were 70% for the quarter,

compared to 75% in Q3 FY11. Currency fluctuations, geographical and

product mix, as well as overall market conditions contributed to this

difference.

Overall operating expenses as a percentage of total revenue for Q3

FY12 were 50% compared to Q3 FY11's 47%.

In detail, for Q3 FY12, sales and marketing ("S&M") expense was

US$27.6 million while general and administrative ("G&A") expense was

US$7.3 million. Research and development ("R&D") expense, which

include costs for new product development and testing, clinical

trials, patent registration and regulatory approval, was US$5.7

million. As a percentage of total revenue, S&M expense was 33% in this

quarter, compared to 26% in the same quarter in the previous year; G&A

expense was 9% consistent with the previous year, while R&D expense

was 7% versus 11%.

For the quarter, the Group's operating profit was US$23.5 million,

representing an 80% year-on-year increase.

The Company successfully completed its acquisition of the remaining

50% equity interest in JWMS on 3 October 2011, and started

consolidating JWMS' operating results in Q3 FY12. As a result, the

Company recorded a one-off non-operating gain of $ 279.6 million on

re-measurement of the Group's interest in JWMS this quarter. Excluding

this gain, as well as other exceptional items including goodwill

impairment and fair value adjustments for warrants, net profit for Q3

FY12 would have been US$26.8 million or basic EPS of 1.63 US cents and

diluted EPS of 1.60 US cents. This compares to a net profit of US$14.9

million or basic EPS of 1.37 US cents and diluted EPS of 1.31 US cents

for Q3 FY11 after excluding the fair value adjustments for warrants.

Including the one-off gain and exceptional items, net profit was

US$291.5 million or 17.78 US cents basic earnings per share ("basic

EPS") and 17.42 US cents diluted earnings per share ("diluted EPS"),

compared to a net profit of US$13.3 million or basic EPS of 1.22 US

cents and diluted EPS of 1.18 US cents for Q3 FY11.

Performance Summary for FY12 Nine-month Period

Total product revenues in the FY12 nine-month period were US$146.0

million, up 46% from the US$99.7 million reported in the fiscal nine

months ended 31 December 2010 ("FY11 nine-month period"). IVP revenues

rose 50% to US$134.9 million compared to US$90.0 million for the FY11

nine-month period, primarily driven by the Company's DES sales. CCP

sales were US$11.2 million, a 15% increase from US$9.7 million for the

FY11 nine-month period.

Overall total operating expenses accounted for 47% of total revenue in

the FY12 nine-month period, compared to 51% in the previous year's

corresponding period.

In detail, for the FY12 nine-month period, S&M expense was US$55.9

million, G&A expense was US$19.7 million, while R&D expense was

US$14.4 million. As a percentage of total revenue, S&M expense was 27%

in the FY12 nine-month period, compared to 28% for the corresponding

period in the previous year; G&A expense was 10% versus 11%, while R&D

expense was 7% versus 10%.

For the FY12 nine-month period, the Group's operating profit was

US$66.6 million, representing a 123% year-on-year increase.

Excluding the one-off operating gain and other exceptional items, net

profit for the FY12 nine-month period would have been US$72.4 million

or basic EPS of 5.03 US cents and diluted EPS of 4.91 US cents. For

the FY11 nine-month period, excluding the fair value adjustments for

warrants and the restructuring charges recorded, net profit would have

been US$36.0 million or basic EPS of 3.33 US cents and diluted EPS of

3.23 US cents.

Including the one-off gain and exceptional items, net profit was

US$337.0 million or basic EPS of 23.39 US cents and diluted EPS of

22.85 US cents, compared to a net profit of US$25.0 million or basic

EPS of 2.32 US cents and diluted EPS of 2.25 US cents for the same

period in FY11.

"Despite the volatile macro environment, we continued to gain share in

our major markets during this quarter. Once again, our sales growth

surpassed our expectation and we are pleased to revise our total

revenue guidance to approximately 80% for this fiscal year, as

compared to the previous growth range of 70%-80%," concluded Co-CEO

Dr. Jack Wang. "As we continue our in-house R&D efforts, we will also

actively seek opportunities internationally to enhance our product

offerings. Looking ahead, our long-term goal is to focus on

diversifying our business and growing Biosensors into a first-class

global medical device company."

About Biosensors International Group, Ltd.

Biosensors International develops, manufactures and markets innovative

medical devices for interventional cardiology and critical care

procedures. We aim to improve patients' lives through pioneering

medical technology that pushes forward the boundaries of innovation.

With the increasing use of the BioMatrixT family of drug-eluting

stents and the recent launch of our AxxessT self-expanding bifurcation

drug-eluting stent, we are rapidly emerging as a leader in the global

coronary stent market. The development of the BioFreedomT drug-coated

stent will further reinforce our market position.

All three stents incorporate Biolimus A9T (BA9T), an anti-restenotic

drug developed and patented by Biosensors specifically for use with

drug-eluting stents. Both the BioMatrix stent family and the Axxess

stent feature a unique abluminal biodegradable polymer coating, which

fully degrades into carbon dioxide and water after six-to-nine-months

as it releases BA9. The BioMatrix stent family features workhorse

stent platforms for a broad range of lesions, and the Axxess stent

employs a self-expanding stent platform specifically designed for

treating bifurcation lesions. BioFreedom, a completely polymer-free

stent abluminally coated with BA9, is currently undergoing clinical

evaluation.

For more information, please visit www.biosensors.com.

Forward-Looking Statements

Certain statements herein include forward-looking statements within

the meaning of the U.S. Private Securities Litigation Reform Act of

1995. Forward-looking statements generally can be identified by the

use of forward-looking terminology, such as "may," "will," "expect,"

"intend," "estimate," "anticipate," "believe," "project" or "continue"

or the negative thereof or other similar words. All forward looking

statements involve risks and uncertainties, including, but not limited

to, customer acceptance and market share gains, competition from

companies that have greater financial resources; introduction of new

products into the marketplace by competitors; successful product

development; dependence on significant customers; the ability to

recruit and retain quality employees as Biosensors grows; and economic

and political conditions globally. Actual results may differ

materially from those discussed in, or implied by, the forward-looking

statements. The forward-looking statements speak only as of the date

of this release and Biosensors assumes no duty to update them to

reflect new, changing or unanticipated events or circumstances.

Media/Investor Relations Contact

Biosensors International Group Mr. Wong Teck Yenn Director, Investor

Relations Tel: +65-6213-5708 Email: ty.wong@biosensors.com

SOURCE Biosensors International Group, Ltd.

-0- 02/08/2012

/Web Site: http://www.biosensors.com/

(Singapore:B20 /

OTC-PINK:BSNRY) /

CO: Biosensors International Group, Ltd.; Terumo Corporation; JW Medical Systems Ltd.

ST: Singapore United States of America

IN: HEA MTC FIN MEQ PHA

SU: SLS ERN

PRN

-- HK49777 --

0000 02/08/2012 13:22:40 EDT http://www.prnewswire.com

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