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bishan22 ( Date: 13-Jun-2011 10:09) Posted:
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tea444u ( Date: 13-Jun-2011 17:23) Posted:
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oh boy!
could haf profited instead of lost...really...no one can tell...never believe the stupid charts.pui!
alexchia01 ( Date: 09-Jun-2011 17:52) Posted:
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Biosensor benefits
The Benefits
•Unique opportunity for Biosensors to establish significant presence in China
•Enables Biosensors to participate in the fast-growing China market that can strengthen the operating performance of the company
•Strengthens Biosensors shareholder base to have a well established medical device company Weigaoas a key investor and board member
•Utilizes JWMS’ strong distribution network and manufacturing capacity to introduce more product lines of Biosensors into China
•Enhances the overall company financial performance
WEIGAO - REASONS FOR THE TRANSACTION
The Group is principally engaged in the research and development, production and sale
of single-use medical devices. The Group has a wide range of products, which includes:
1) consumables (infusion set, syringes, medical needles, blood bags, blood sampling products
and other consumables) 2) orthopedic materials 3) blood purification consumables and
4) drug eluting stent. The Group has a nationwide sales network and an extensive customer
base of over 5,055 healthcare organizations, including over 2,934 hospitals and 413 blood
stations.
WMI is an investment holding company incorporated in Hong Kong on 15 October 2010 with
limited liability and is owned as to 100% by Treasure Solution.
Biosensors develops, manufactures and markets innovative medical devices used in
interventional cardiology and critical care procedures. Biosensors is well-positioned to
emerge as a leader in drug-eluting stents and has developed a pipeline of next-generation
products that are set to gain market share from traditional therapies such as conventional drugeluting
stents, bare-metal stents and open-heart surgery. It has three separate drug-eluting
stent programs: BioMatrix™, a drug-eluting stent with abluminal biodegradable polymer
BioFreedom™, a completely polymer-free drug coated stent and Sparrow®, a novel ultra-low
profile “stent on a wire” system.
Based on Biosensors’ unaudited results for the year ended 31 March 2011, Biosensors
reported total revenue of US$156.6 million (equivalent to HK$1,218.7 million) and a net
profit of US$43.3 million (equivalent to HK$337.0 million). Biosensors has a market
capitalization of about US$1.3 billion (equivalent to HK$10.4 billion) as at 10 June 2011.
The accounting gain on the disposal of JWMS will be computed between the Consideration
and the Group’s interests in JWMS on Completion Date. For reference only, the accounting
gain on disposal is about RMB2.9 billion (equivalent to approximately HK$3.5 billion) based
on the Group’s interest in JWMS as at 31 December 2010 and the Issue Price of Biosensors
Shares as set out in the SPA.
The Directors are of the view that dual brands and dual channels of JWMS and Biosensors
enable the Group and Biosensors to have unparallel competitive advantage in the China
market and the world markets.
Given the terms of the SPA were negotiated on an arm’s length basis, the Board considers that
the terms of the SPA are fair and reasonable, are on normal commercial terms and are in the
interests of the Company and the Shareholders as a whole.
$625.4m deal to see new key shareholder in Biosensors
The deal, announced yesterday, will see Hong Kong-listed Weigao emerge as a key shareholder of Biosensors, with a potential stake of up to 16.2 per cent. It will also gain two seats on the Biosensors board.
The proposed acquisition, which will result in JWMS becoming a fully-owned subsidiary of Biosensors, is in line with the group's strategy of expanding and consolidating its drug-eluting stent business in China.
In a regulatory filing with the Singapore Exchange (SGX) yesterday, Biosensors said the deal represents a 'unique opportunity for the company to increase its foothold and presence in the PRC (People's Republic of China), one of the fastest growing drug-eluting stent markets in the world'.
The China healthcare system is undergoing fundamental changes as a result of the government's new healthcare reform initiative, and concurrent significant expansion of financial support for its healthcare system.
'Under the new healthcare reform initiative, stent treatment is reimbursable under the PRC's basic medical insurance coverage which covers more than 90 per cent of the PRC population. This will result in lower costs and increase the demand for stent treatments.
'An ageing population and changing dietary habits have significantly increased the prevalence of coronary diseases in the PRC. According to the PRC's Ministry of Health, cardiovascular disease is the second deadliest disease in the PRC and accounted for approximately 20.8 per cent of all deaths in the PRC's urban areas in 2009,' Biosensors said.
Biosensors said the entry of Weigao - a well-established medical device company in China - as a substantial shareholder will diversify and enhance Biosensors' shareholder profile and assist the company's business expansion in the China market.
Weigao chairman Chen Xue Li said: 'Being a key shareholder of Biosensors, we are committed to make Biosensors the premier medical technology company in China and the global market.'
The purchase consideration will comprise a cash payment of S$160 million the issuance to Weigao of 260 million new ordinary shares of Biosensors at S$1.2215 per new share, amounting to S$317.59 million in aggregate and the issuance to Weigao of US$120.043 million principal amount of 4 per cent convertible notes due 2014 in the company with a conversion price of US$1.0913 for each conversion share subject to adjustment.
The total assets, net assets value, and the net tangible assets value of JWMS based on the unaudited financial statements of JWMS for the financial year ended March 31, 2011, are about US$141.6 million, US$127.1 million and US$123.8 million respectively.
The S$1.2215 pricing for each new share to be issued to Weigao represents the weighted average price for trades done on SGX on June 10.
Assuming the acquisition had been completed on April 1, 2010, Biosensors' earnings per share (EPS) for the year ended March 31, 2011, would have increased from 3.99 US cents to 29.13 US cents after the completion of the acquisition.
Upon full conversion of the convertible notes into shares at the US$1.0913 conversion price, the EPS would be 27.40 US cents. These calculations are inclusive of an estimated US$348.8 million one-off gain on re-measurement of the company's existing interest in JWMS to the fair value as at the date of the proposed acquisition as required under IFRS3.
The profit before income tax, minority interests and extraordinary items that is attributable to the proposed acquisition is US$23.3 million, which would be 47.5 per cent of the group's net profit of US$49.1 million for FY2011.
Biosensors chairman Yoh-Chie Lu said: 'Since commercialisation of its drug-eluting stents in early 2006, JWMS has become one of the top suppliers of the local DES market in China. This acquisition demonstrates a joint dedication between Biosensors and Weigao to foster stronger relationships as long-term strategic partners. The market for DES continues to grow rapidly in China and obtaining full ownership of JWMS, Biosensors will instantaneously become a stronger player in this vital market.
'At the same time, with Weigao as a strategic shareholder of Biosensors and our unique proprietary drug and polymer technologies, we are set to become a major DES supplier in China for many years to come.'
Biosensors has appointed DBS Bank as its financial adviser for the transaction.
(SINGAPORE) Biosensors International Group is proposing to acquire the remaining 50 per cent stake in drug-eluting stent maker JW Medical Systems Ltd (JWMS) for S$625.4 million from Shandong Weigao Group Medical Polymer Co Ltd.
Biosensors acquiring the remaining 50% interest in JWMS
Weigao becoming a major shareholder of Biosensors.
The time have come for Bio to further expand its business footprint in China.Weigao will become a SSH in Biosensors,paving the way for Bio to penerate China's stent market.
Yes. This is correct.
tea444u ( Date: 09-Jun-2011 19:52) Posted:
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ok alex. thank u for the clarification...that means you dont know the ball has hit the floor until it bounces back up? so the floor can be at 121 or 120 for instance or even 122 but one cannot tell until price starts to move up from these levels or any other level for that matter?
am i rite?
alexchia01 ( Date: 09-Jun-2011 19:31) Posted:
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I don't know what is the best price and time to enter.
All I know is that now is not the right time to Buy.
It's like looking at a falling glowing ball in the dark. I don't know where is the bottom until it hit the floor and bound up.
Right now, I'm seeing a falling Biosensors, until it hit the floor and made a good enough bound, I'm not Buying.
tea444u ( Date: 09-Jun-2011 18:20) Posted:
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the SSH are buying at prices higher than mine...i shall pray the henceforth...Biosensors will move up to $1.55 cents...yes! charts are really the past...hope works for the future...hehehe
no offence to all chartists
omg you killing me...cant you try and say something more helpful?
oh gosh... is there really a right time to buy a stock?it been falling so long...i tot ok to enter ..sigh...
So what is the right price to enter in your opinion?
Been looking at it too but I just feel its still a bit too high.
alexchia01 ( Date: 09-Jun-2011 17:52) Posted:
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Not right to Buy Biosensors now. Too early.
tea444u ( Date: 09-Jun-2011 17:01) Posted:
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They have bought ~13.7M shares since 27 April 11, for $1.28-1.40 a share. Why are they so confident? Do they know something that we don't?
30-05-2011
| 1. | Holdings of Substantial Shareholder , including direct and deemed interest : |
 | Direct | Deemed |
| No. of shares held before the change | 0 | 93,520,000 |
| As a percentage of issued share capital | 0 % | 6.97 % |
| No. of shares held after the change | 0 | 94,764,000 |
| As a percentage of issued share capital | 0 % | 7.06 % |
27-04-2011
1. | Holdings of Substantial Shareholder , including direct and deemed interest : |
| Direct | Deemed |
| No. of shares held before the change | 0 | 76,751,000 |
| As a percentage of issued share capital | 0 % | 5.74 % |
| No. of shares held after the change | 0 | 81,045,000 |
| As a percentage of issued share capital | 0 % | 6.06 % |
allright ( Date: 02-Jun-2011 10:00) Posted:
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This speculation about more corporate deals coming, where the company will sell shares to new investors at a discount does not make sense, and it does not seem to be the likely scenario.
Let us look at the facts. Biosensors has already raised S$200m cash in the last private placement, and the company generated about US$27m positive cash flow in end mar 2011.
As at end Mar 2011, the company has US$258m in cash ! - So much cash, they would be better off, using that cash to do acquisition, so as to generate higher returns for the company, and this is just what they say they will be doing.
So, let us not get side-tracked. THe recent sell-down, is what I term a correction, in what has been the longest up-trend that I have ever seen for a stock. If I am not mistaken, this up-trend started around mar 2009, with intermittent correction along the way, and the up-trend still seems to be intact, as at now. (provided no negative new 'news' comes out)
There are still some forward catalysts, going into 2012, and these catalysts will probably support the trend, eg, surprise approval from China, strong sales in Japan, re-structuring in JWMS, such that its value is realised for Biosensors.
Don't forget - JWMS is valued in Biosensors' books as US115m or so, when its mkt value as appraised by DBS Vickers, is probably closed to US$500m.
Not a call to buy/sell.