continue of the NHC Care II trial and the Prof comment which is not pasted to my previous update.

The centre estimates that 10% - 30% of the patients requiring percutaneous coronary interventions (PCI) may benefit from this revolutionary stent. The Sparrow Stent is currently being evaluated in a clinical trial known as the CARE II Study.

This multi-site randomised trial will test both the drug-eluting and bare-metal versions of the Sparrow, plus a competitive stent in 220 patients. The National Heart Centre Singapore is currently the only Asian site to have started in the CARE II Study. Four patients have been treated since the trial started here in September 2008.

"All four patients had uncomplicated procedural and hospital outcomes. I see a great potential for this stent since many of our diabetic patients have small vessels." said Associate Professor Koh Tian Hai, Medical Director, National Heart Centre Singapore and also the Principal Investigator of CARE II in Singapore.

The Sparrow Stent implantation procedure will be showcased at the centre's annual cardiology conference, the Singapore LIVE 2009 (Live Interventions in Vascular Endotherapy) in a live telecast from the NHC catheterisation laboratory to an estimated audience of 1,000 delegates at the Suntec Singapore International Convention and Exhibition Centre.

Just some update on BIG newly acquired company Cadiomind ( CARE II trial). This Trial  is also being conducted in our renowned Spore National Heart Center since 2008 and all the patients are doing well. Read what the Prof of NHC has to say about the Sparrow stent and its future potential. The large number of overeating and smoking Chinese polution will yield a large number of heart patients(bigger than US ) requiring stent treatment in the next years. So my view is BIG should get closer to China/HongKong Market (ie HK Ex or Shenzhen Ex) to be appreciated and rewarded.    

by National Heart Centre Singapore

Heart patients with small, difficult to treat vessels requiring stenting procedures may soon have another viable option to treat coronary artery disease. Known as the CardioMind SparrowTM Drug-Eluting Coronary Stent System, this stent is 70% smaller in diameter than any other currently approved stent and targets at blood vessels smaller than 2.75mm in diameter.

The Sparrow Stent System is an improved version of the current stents in the market. Conventional balloon-expandable stents travel over guidewires to the lesion in the artery. The Sparrow Stent is incorporated into the distal end of the guidewire itself, therefore having the same outer diameter and flexibility as the guidewire. The stent travels as part of the guidewire to the site of the lesion. The cardiologist then releases the stent and allows it to self-expand and support the vessel wall. The tightness of fit of conventional stents, as well as their inflexibility and the forces delivered by the balloon expansion, may contribute to increased vessel trauma, which in turn leads to less favourable long-term results. The Sparrow Stent also offers more flexibility than the current stents, making it especially adaptable to the treatment of small, tortuous blood vessels often associated with diabetes, which represent 40% of the patients who require a stenting procedure. Over time, the polymer of the Sparrow Stent will gradually biodegrade away and return the stent to a bare metal state. Biodegradable polymers for drug-eluting coronary stents are thought to contribute to a reduction in late stent thrombosis rate.

The centre estimates that 10% - 30% of the patients requiring percutaneous coronary interventions (PCI) may benefit from this revolutionary stent. The Sparrow Stent is currently being evaluated in a clinical trial known as the CARE II Study.

MICROPORT  -  BIOSENSORS

HONG KONG  VS  SINGAPORE

Microport Goes into public arena at HK$6.10  S$1.07 providing an enterprise value of HK$8.5B  and S$1.5B

After trading several days Microport closes at HK$8.50  S$1.49 providing an enterprise value of HK$11.9B and S$2.1B.

Establishing Microport’s value between S$1.5 – $2.1B.

BIG is a direct comparable competing in China Market through JWMS who is second to Microport with 28% mkt share compared to Microport’s 32% mkt share (Forrester estimates) and directly in the rest of the world.

BIG owns proprietary clinically proven superior technology, Microport does NOT. 

BIG has robust product pipeline Microport does not.

BIG’s gross revenue and net profits are larger than Microport’s.

BIG’s EPS greater than Microport’s

BIG’s share price closed at S$0.975 Microport’s is S$1.49

BIG’s enterprise value is S$1.0B and Microport’s is S$2.1B                  .

 

Microport traded in Hong Kong, BIG traded in Singapore

Is this the valuation difference????

S$0.20/share, pending further management guidance on BioFreedom strategy.

�� Catalysts

Continued momentum in its forthcoming results, potential value-unlocking of its

50% stake in domestic drug-eluting stent (DES) supplier in China, JWMS, and

Japan’s approval of Terumo’s Nobori, whose technology is licensed from BIG.

Anchor themes

The US$5bn DES industry is one of the most profitable segments in the medical

technology space, with market share changes driven by innovation. Start-ups like

Biosensors, with its leading-edge technology, could be M&A targets for incumbents

Good showing at TCT

�� BioFreedom: first polymer free DES

BioFreedom’s 12-month results showed that the polymer free stent is

safe and effective, meeting the primary end-point for efficacy and

proving statistical non-inferiority against Taxus, with a trend toward

superiority. With a reduced time frame of six months (as compared to

12 months) for dual anti-platelet therapy (DAPT), BioFreedom

addresses a major concern about the duration of DAPT for patients.

A larger trial involving head-to-head comparison with market leader

XIENCE V could be a game-changer, in our view.

�� BioMatrix: reaffirmative three-year LEADERS trial data

The divergence in MACE rate continues to favour BioMatrix over

Cypher, with a statistically significant reduction achieved in the highrisk

sub-group. We believe the positive three-year data is reaffirmative

and should drive incremental market share gains.

�� Sparrow: a step closer to portfolio diversification

The eight-month results from the CARE II study verified the safety and

efficacy of Sparrow DES in the treatment of small vessel lesions. This

supports BIG’s CardioMind acquisition and strategic intent to broaden

its product portfolio as the group intends to pursue it for various

clinical applications in small vessels throughout the body.

�� Maintain BUY — potential PT accretion of S$0.20/share

We believe BioFreedom’s preliminary success could trigger some

corporation action such as a licensing agreement in the US and

clinical trial collaborations in China via JWMS. A successful head-tohead

trial against XIENCE V could also be a possible M&A catalyst, in

our view. We estimate potential accretion of S$0.20/share to our PT

as a base case and will look to revise our valuation once there is more

clarity on management’s BioFreedom strategy. Reiterate BUY

BioFreedom — strategic decisions to be made

Given the promising 12-month results of BioFreedom’s FIM (First in-Man) trial, we

believe Biosensors is now faced with several strategic decisions to bring the group to

the next level:

��

market share in this industry. To achieve significant market share, we believe a

head-to-head trial against the current industry gold standard XIENCE V is

necessary. On the flip side, it may be a risky move as potential inferiority would be

detrimental for BioFreedom’s publicity, in our view.Head-to-head trial against XIENCE V? Groundbreaking clinical results move

��

exploring options to enter the US DES market and has previously mentioned

BioFreedom as a potential product to launch in the world’s biggest market. Given

its lack of marketing capabilities and the huge expense involved in the FDA

approval process, BIG is likely to seek a Terumo-like licensing agreement in the US,

in our view. In this regard, upfront royalty payments could be potential stock

catalysts.Entry into the US market via licensing agreement. The group has been

��

look to leverage on JWMS to launch BioFreedom clinical trials in China. We think

BioFreedom could also catalyse the strategic discussions between Weigao and

BIG on JWMS as the stent JV does not have a third-generation stent in the R&D

pipeline.

Assuming BioFreedom receives CE Mark and FDA approval by 2012 and 2014, we

would value it at

S$0.20/share to our PT

articulate its BioFreedom strategy, we believe it is premature to revise our SOTP

valuation at this stage. We will revisit our valuation once we have more clarity on

approval timeline and licensing agreement, if any.Potential clinical trial collaboration with JWMS in China. We believe BIG couldUS$477mn as a base case, which would potentially add(Exhibit 1). However, given that management has yet to

Exhibit 1. Potential valuation of BioFreedom (assuming CE Mark and FDA approval by 2012 and 2014)