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Biosensors

Is Biosensors a good buy?

Look like the market is still not that receptive, otherwise the price should be moving up abit rather thatn hovering 1.03 ~ 1.05

OCBC have raise target to 1.30, look like it going to take some more time before it can reach there...

There will be some uncertainties in the short term but it's good to hear that no other management staffs except Mr Lu sold off their shares and so far no bond holders redeem their bonds due to the change in the largest substantial holder.

This figure is from KIM Eng security.

BIG has negative income from 2007 to 2009, this explained its very poor share performance which collapses everytime there is a market panic or negative news. This time its different. The dawn of 2010 brought together with it its very 1st NET Profit of est US$ 30+ million ( US$). Sales turn over increase almost 3.5 times over 4 years. Going forward its turn over will only increase as its market share get bigger and bigger with introduction of new and better products.

For some of you who still has misgiving about Mr. LU selling his holding, I hope this info will help alleviate your anxiety and rebuild your trust & faith in BIG.

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Biosensors started at Buy by OCBC; $1.30 target
Friday, 15 October 2010

Last Updated on Friday, 15 October 2010 11:15

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Biosensors started at Buy by OCBC; $1.30 target
Friday, 15 October 2010

Last Updated on Friday, 15 October 2010 11:15

OCBC Investment Research starts Biosensors (B20.SG) at Buy with $1.30 target price, says Dow Jones.

OCBC says company’s flagship BioMatrix stent remains the only commercialized biodegradable polymer drug-eluting stent available in market, “which highlights the technological expertise of Biosensors”.

Research house notes heart-stent maker also developing new technology called BioFreedom; “initial trials have showed encouraging results and a successful implementation will provide Biosensors with a further competitive edge.”

OCBC forecasts net profit CAGR of 48.1% over FY10-12. Says recent entry of China-based private equity group Hony Capital as major shareholder with 29.47% stake will help company tap burgeoning Chinese healthcare market.

Biosensors International Group: Standing Strong against the Big Boys

Summary: Biosensors International Group (BIG) is finally back in the black (FY10) after suffering losses from FY06 to FY09. The turning point came with the introduction of BioMatrix, which was the first biodegradable polymer drug-eluting stent (DES) in the market. BioMatrix remains the only commercialised biodegradable polymer DES currently, which highlights the technological expertise of BIG. We expect this turnaround story to continue and forecast revenue and net profit CAGR of 34.5% and 48.1% respectively from FY10 to FY12F. This is driven by increased growth momentum in existing and new markets for DES as well as the constant innovation to develop new cutting-edge technology (BioFreedom in the pipeline). A successful implementation of BioFreedom, which has showed encouraging initial trial results, would provide BIG with a further competitive edge, in our view. Assuming a long-term growth rate of 3%, a required return on equity of 8.1%, we derive a FCFE fair value of S$1.30 per share. Given the potential 25.0% upside from the current stock price, we resume coverage on BIG with a BUY rating.

By OCBC

Ha ha, it was one of AK favourite's baby. It has great potential, esp now considering not espenv. Best to grab it if had missed px below 0.90.

China is a big market, as most people there taking fatty meat, esp pork, blood vessels sure got hidden problems one.

Spore more or less is a medical hub, if couples with latest heart attack tester n enhance stern surgical technique, more medical tourists will jam here , hoe seh liao.

Following are DBS Vickers's comments on the 29.47 % acquisition by Hony Capital.

QUOTE

Our views:

Our assessment of the situation is still ongoing. However,our preliminary thoughts are that entry of Hony Capital could spell positive prospect for Biosensor going forward,especially in China.

Hony Capital is a vote of confidence, with ultimate links to Legend/Chinese Academy of Sciences Holdings.

Hony Capital could add value to BIG's operations especially in China.

Hony Capital's shareholder is Legend Holdings,which in turn is 35% held by Chinese Academy of Sciences Holdings (an SOE).

In that respect, the chances of its BioMatrix obtaining approvals in the Chinese market would be enhanced going forward.

We think the element of "guanxi" could also take the relationship with Shandong Weigao forward. UNQUOTE

Also. went to listen to the webcast at 5.40 pm today. (missed the first few 10 mins)

Got the impression that there is a possibility of 'dual listing' in HK - one of the options that Hony Capital can consider to maximise shareholder's value. Will listen to the full recording tomorrow to confirm this impression.

For info - Not a call to buy/sell.

First I would like to address the comment re: Warren Buffet - Berkshire Hathaway is a different animal than BIG. It is a conglomerate with many different businesses spread over the globe. The shareholders of Berkshire have faith in Mr Buffet and demonstrate that faith by the amount they are willing to pay for his stock and the FACT they do not look for the short term profit - like so many do here.

Mr Lu as such a large percentage owner of BIG stock with a family to provide for, could not sell SGX reportable portion of his holdings to provide for his family without causing the severe market disruption from investors who share dinola's concerns. And Singapore shareholders always worried about a quick few cents profit has NOT shown BIG the committment shown by Berkshire shareholders.

Face it, all large shareholders in BIG locked in! The only way to go that was fair to all, was this type of sale.

Look at the recent reaction of shareholders who in my opinion have just "won the lottery":

by Hony's & Fidelity's validation of and investment in the Company.

by new institutional investors NOW interested in BIG due to Hony investment. Over 200 mutual / investment funds in US alone that specialize in Asia stocks.

By Microport's peer listing demonstrating value approaching 2X current market value of BIG.

Shareholders grabbed few cent profit and ran!!! Certainly NOT what Berkshire shareholders do.

I agree that history will prove this move was best for ALL shareholders large and small.

Wish you all the best. hope all your predictions come true.

infancybird ( Date: 14-Oct-2010 17:30) Posted:

FYI, dinola, $0.8888 is before tax and duties. By the way , selling for 20% profit is usually not the practice of big fund though this profit is very tempting to small short term trader. Big Strategic Iinvestor follows a long term strategic plan and has clear vision and aim. Thy are not for quick shallow profit. You can monitor their sale from the Biosensor News listing in SGX website which will show any substantial shareholder`s sales.

Only time will tell whether BIG will benefit under Hony and I believe we will not take too long to find out .

Wow....Mr Lu must be one of the winner...

infancybird ( Date: 14-Oct-2010 16:00) Posted:

Auspicious thing keep coming for BIG. Hony paid SGD 0.8888 for BIG and Mr. LU got married on 8th Aug and his birthday is on 08-08.

Yesterday 13-10-2010 the number 0888 is 3rd price for Spore pool . Similarly the Number 2749 is consolation price(Hony buy 29.47% of BIG)....What an auspicious coincidence . Chinese always say good thing happen in pairs and this is a typical example of such saying. Wonder anyone stike these 2 numbers??

FYI, dinola, $0.8888 is before tax and duties. By the way , selling for 20% profit is usually not the practice of big fund though this profit is very tempting to small short term trader. Big Strategic Iinvestor follows a long term strategic plan and has clear vision and aim. Thy are not for quick shallow profit. You can monitor their sale from the Biosensor News listing in SGX website which will show any substantial shareholder`s sales.

Only time will tell whether BIG will benefit under Hony and I believe we will not take too long to find out .

Market price is $1.00, now I sell you at 88cents. Will you buy? hony can offload anytime and make 20% now.

investor ( Date: 14-Oct-2010 15:38) Posted:

Hony Capital must have truly believed in the company's future - That's why they bought 29.47 % stake in Biosensors.

Auspicious thing keep coming for BIG. Hony paid SGD 0.8888 for BIG and Mr. LU got married on 8th Aug and his birthday is on 08-08.

Yesterday 13-10-2010 the number 0888 is 3rd price for Spore pool . Similarly the Number 2749 is consolation price(Hony buy 29.47% of BIG)....What an auspicious coincidence . Chinese always say good thing happen in pairs and this is a typical example of such saying. Wonder anyone stike these 2 numbers??

Hony Capital must have truly believed in the company's future - That's why they bought 29.47 % stake in Biosensors.

I diagree Mr. Lu just washed his hand and walked away. He has done a win win deal not only for himself and also for Hony and US, the small players.

Though having sold his share, he is still the chairman. I am sure Hony has better plan and has given him and the other 7 vendors very good terms in their confidential sales and Purchase agreement...eg share option, sharing of profit and issue of preferential PRE-IPO share when BIG go for secondary dual listing( this is most profitable with guarantee profit of many times, depends on the P/E).

In my opinion,Mr. Lu has actually given us , the small holders ,a win win deal as we are now having a very seasoned majority holder who will push BIG value up soon.Currently the stock is overbought and need a little digestion. Once digested and once more good news of the company start to flow, the stock will surge again. My target is SGD 1.30 by yr end.

Now washed hands, can say whatever he wants.

If u truely believe in a company future, will u sell? You don't need Warren Buffett to tell u the answer.

topdog22 ( Date: 14-Oct-2010 09:22) Posted:

Biosensors founder allays fears over share sale

Chinese investor has wide knowledge about pharma industry, he says

By LYNN KAN

YES, he and his affiliates have sold their 18.2 per cent stake in Biosensors International to Chinese private equity firm Hony Capital, but chairman Lu Yoh Chie tells BT that he has no intention of relinquishing his role in the stent-making company that he had built from scratch in 1990. And he also has his reasons for selling the shares at 88.88 cents apiece.

Mr Lu: 'When we did the calculations of the 45-day average price, it came up to 88.88 cents. So I said, 'Eight is a lucky number, let's do it'.'

'Maybe I don't think like how ordinary people think. I'm not driven by money and I didn't think that I was selling to lock in a profit,' said Mr Lu. 'I was driven by principle and the match was compatible.'

In fact, he's moving back to Singapore from the US to concentrate on the Asian market more intently. 'I'm going to be spending most of my time in Asia, and to do so I'm moving here, although I've never really left, because I'm a PR here.'

Mr Lu's divestment has created some jitters on the market. An announcement on the Singapore Exchange website after midnight on Monday made known that he and affiliates sold their more than 197 million shares to Autumn Eagle, Hony Capital's special purpose investment vehicle, at 88.88 cents apiece, against a market price then of about $1.00.

Though the announcement stated that Mr Lu would stay on as chairman of the company, the market reacted almost instantaneously on the news of Mr Lu's divestment.

In a reversal of Monday's gain of 8 per cent to $1.08, Biosensors' shares shed 4 cents on Tuesday to close at $1.04 on the uncertainty that Mr Lu's divestment created.

A Web conference was called yesterday at 5.30pm, and investment firms Nomura, DBS Vickers, OCBC, Credit Suisse and Lim & Tan Securities phoned in to gain reassurance from Mr Lu himself, who was in Singapore.

In an interview with BT yesterday, Mr Lu said that the deal was made in the best and long-term interests of the company.

'There are limitations to what I could do for Biosensors. The company has grown beyond my capabilities. Not that I am leaving or quitting in any way. I just decided that it's time for some new blood.

'For a biotechnology company, you not only need the right talent, the passion and great ideas,' he said. 'But you also need deep pockets, otherwise the funding for the idea will dry up.'

Hony Capital was Biosensors' most genuine and persistent pursuer. 'It followed the company for more than six months. It's a well-known private equity firm and it has extensive knowledge about the pharmaceutical industry. And most importantly, it was upfront and honest,' he said.

He also said that he didn't entertain other interested parties in the same way he did Hony, although there were such parties over the years. 'I think I didn't shop around in that sense. It wouldn't have been a respectful thing to do.'

As for why he sold his stocks at a discount to the market price, he said the price was committed out of fairness to Hony and also, out of superstition. 'When we began discussions more than six months ago, the price was in the 60 to 70 cent range, never more. But it was only recently that the share price shot up. I wanted to be reasonable and equitable so we tried to strike a good balance. I always like a win-win.

'So, when we did the calculations of the 45-day average price, it came up to 88.88 cents. My birthday is Aug 8 and I was married on the same day. So I said, 'Eight is a lucky number, let's do it.' They liked it too. It was meant to be.'

Hony Capital has had prior experience in aiding similar biotech companies and, according to a report by Nomura, has invested in at least three in China.

With Biosensors focusing on gaining a larger market share in China with its 50 per cent joint venture, JW Medical Systems, Hony Capital is coming on board at the right time to lend its financial strength and expertise.

Mr Lu says he will continue as chairman of Biosensors for as long as he can. 'Biosensors is like the son I never had. But Biosensors needs to seek new adventures, needs to continue to build. There are new opportunities to explore and I believe that it's the right time for Hony, myself, the management team and shareholders to address an exciting market.'

Biosensors shares recovered some lost ground yesterday, adding 2 cents to end at $1.06.

Biosensors founder allays fears over share sale

Chinese investor has wide knowledge about pharma industry, he says

By LYNN KAN

YES, he and his affiliates have sold their 18.2 per cent stake in Biosensors International to Chinese private equity firm Hony Capital, but chairman Lu Yoh Chie tells BT that he has no intention of relinquishing his role in the stent-making company that he had built from scratch in 1990. And he also has his reasons for selling the shares at 88.88 cents apiece.

Mr Lu: 'When we did the calculations of the 45-day average price, it came up to 88.88 cents. So I said, 'Eight is a lucky number, let's do it'.'

'Maybe I don't think like how ordinary people think. I'm not driven by money and I didn't think that I was selling to lock in a profit,' said Mr Lu. 'I was driven by principle and the match was compatible.'

In fact, he's moving back to Singapore from the US to concentrate on the Asian market more intently. 'I'm going to be spending most of my time in Asia, and to do so I'm moving here, although I've never really left, because I'm a PR here.'

Mr Lu's divestment has created some jitters on the market. An announcement on the Singapore Exchange website after midnight on Monday made known that he and affiliates sold their more than 197 million shares to Autumn Eagle, Hony Capital's special purpose investment vehicle, at 88.88 cents apiece, against a market price then of about $1.00.

Though the announcement stated that Mr Lu would stay on as chairman of the company, the market reacted almost instantaneously on the news of Mr Lu's divestment.

In a reversal of Monday's gain of 8 per cent to $1.08, Biosensors' shares shed 4 cents on Tuesday to close at $1.04 on the uncertainty that Mr Lu's divestment created.

A Web conference was called yesterday at 5.30pm, and investment firms Nomura, DBS Vickers, OCBC, Credit Suisse and Lim & Tan Securities phoned in to gain reassurance from Mr Lu himself, who was in Singapore.

In an interview with BT yesterday, Mr Lu said that the deal was made in the best and long-term interests of the company.

'There are limitations to what I could do for Biosensors. The company has grown beyond my capabilities. Not that I am leaving or quitting in any way. I just decided that it's time for some new blood.

'For a biotechnology company, you not only need the right talent, the passion and great ideas,' he said. 'But you also need deep pockets, otherwise the funding for the idea will dry up.'

Hony Capital was Biosensors' most genuine and persistent pursuer. 'It followed the company for more than six months. It's a well-known private equity firm and it has extensive knowledge about the pharmaceutical industry. And most importantly, it was upfront and honest,' he said.

He also said that he didn't entertain other interested parties in the same way he did Hony, although there were such parties over the years. 'I think I didn't shop around in that sense. It wouldn't have been a respectful thing to do.'

As for why he sold his stocks at a discount to the market price, he said the price was committed out of fairness to Hony and also, out of superstition. 'When we began discussions more than six months ago, the price was in the 60 to 70 cent range, never more. But it was only recently that the share price shot up. I wanted to be reasonable and equitable so we tried to strike a good balance. I always like a win-win.

'So, when we did the calculations of the 45-day average price, it came up to 88.88 cents. My birthday is Aug 8 and I was married on the same day. So I said, 'Eight is a lucky number, let's do it.' They liked it too. It was meant to be.'

Hony Capital has had prior experience in aiding similar biotech companies and, according to a report by Nomura, has invested in at least three in China.

With Biosensors focusing on gaining a larger market share in China with its 50 per cent joint venture, JW Medical Systems, Hony Capital is coming on board at the right time to lend its financial strength and expertise.

Mr Lu says he will continue as chairman of Biosensors for as long as he can. 'Biosensors is like the son I never had. But Biosensors needs to seek new adventures, needs to continue to build. There are new opportunities to explore and I believe that it's the right time for Hony, myself, the management team and shareholders to address an exciting market.'

Biosensors shares recovered some lost ground yesterday, adding 2 cents to end at $1.06.

it is already discounted in the price already....

topdog22 ( Date: 14-Oct-2010 11:02) Posted:

Can anyone explain why BIG has not gone up after receiving validation from Fidelity a company with over US $1.5 trillion dollars under management through its $50M+ dollar investment or HONY with it's $250M+ investment? These well established, well managed, well staffed companies have clearly shown their faith in BIG.

Biosensors founder allays fears over share sale

Chinese investor has wide knowledge about pharma industry, he says

By LYNN KAN

YES, he and his affiliates have sold their 18.2 per cent stake in Biosensors International to Chinese private equity firm Hony Capital, but chairman Lu Yoh Chie tells BT that he has no intention of relinquishing his role in the stent-making company that he had built from scratch in 1990. And he also has his reasons for selling the shares at 88.88 cents apiece.

Mr Lu: 'When we did the calculations of the 45-day average price, it came up to 88.88 cents. So I said, 'Eight is a lucky number, let's do it'.'

'Maybe I don't think like how ordinary people think. I'm not driven by money and I didn't think that I was selling to lock in a profit,' said Mr Lu. 'I was driven by principle and the match was compatible.'

In fact, he's moving back to Singapore from the US to concentrate on the Asian market more intently. 'I'm going to be spending most of my time in Asia, and to do so I'm moving here, although I've never really left, because I'm a PR here.'

Mr Lu's divestment has created some jitters on the market. An announcement on the Singapore Exchange website after midnight on Monday made known that he and affiliates sold their more than 197 million shares to Autumn Eagle, Hony Capital's special purpose investment vehicle, at 88.88 cents apiece, against a market price then of about $1.00.

Though the announcement stated that Mr Lu would stay on as chairman of the company, the market reacted almost instantaneously on the news of Mr Lu's divestment.

In a reversal of Monday's gain of 8 per cent to $1.08, Biosensors' shares shed 4 cents on Tuesday to close at $1.04 on the uncertainty that Mr Lu's divestment created.

A Web conference was called yesterday at 5.30pm, and investment firms Nomura, DBS Vickers, OCBC, Credit Suisse and Lim & Tan Securities phoned in to gain reassurance from Mr Lu himself, who was in Singapore.

In an interview with BT yesterday, Mr Lu said that the deal was made in the best and long-term interests of the company.

'There are limitations to what I could do for Biosensors. The company has grown beyond my capabilities. Not that I am leaving or quitting in any way. I just decided that it's time for some new blood.

'For a biotechnology company, you not only need the right talent, the passion and great ideas,' he said. 'But you also need deep pockets, otherwise the funding for the idea will dry up.'

Hony Capital was Biosensors' most genuine and persistent pursuer. 'It followed the company for more than six months. It's a well-known private equity firm and it has extensive knowledge about the pharmaceutical industry. And most importantly, it was upfront and honest,' he said.

He also said that he didn't entertain other interested parties in the same way he did Hony, although there were such parties over the years. 'I think I didn't shop around in that sense. It wouldn't have been a respectful thing to do.'

As for why he sold his stocks at a discount to the market price, he said the price was committed out of fairness to Hony and also, out of superstition. 'When we began discussions more than six months ago, the price was in the 60 to 70 cent range, never more. But it was only recently that the share price shot up. I wanted to be reasonable and equitable so we tried to strike a good balance. I always like a win-win.

'So, when we did the calculations of the 45-day average price, it came up to 88.88 cents. My birthday is Aug 8 and I was married on the same day. So I said, 'Eight is a lucky number, let's do it.' They liked it too. It was meant to be.'

Hony Capital has had prior experience in aiding similar biotech companies and, according to a report by Nomura, has invested in at least three in China.

With Biosensors focusing on gaining a larger market share in China with its 50 per cent joint venture, JW Medical Systems, Hony Capital is coming on board at the right time to lend its financial strength and expertise.

Mr Lu says he will continue as chairman of Biosensors for as long as he can. 'Biosensors is like the son I never had. But Biosensors needs to seek new adventures, needs to continue to build. There are new opportunities to explore and I believe that it's the right time for Hony, myself, the management team and shareholders to address an exciting market.'

Biosensors shares recovered some lost ground yesterday, adding 2 cents to end at $1.06.

Biosensors founder allays fears over share sale

Chinese investor has wide knowledge about pharma industry, he says

By LYNN KAN

YES, he and his affiliates have sold their 18.2 per cent stake in Biosensors International to Chinese private equity firm Hony Capital, but chairman Lu Yoh Chie tells BT that he has no intention of relinquishing his role in the stent-making company that he had built from scratch in 1990. And he also has his reasons for selling the shares at 88.88 cents apiece.

Mr Lu: 'When we did the calculations of the 45-day average price, it came up to 88.88 cents. So I said, 'Eight is a lucky number, let's do it'.'

'Maybe I don't think like how ordinary people think. I'm not driven by money and I didn't think that I was selling to lock in a profit,' said Mr Lu. 'I was driven by principle and the match was compatible.'

In fact, he's moving back to Singapore from the US to concentrate on the Asian market more intently. 'I'm going to be spending most of my time in Asia, and to do so I'm moving here, although I've never really left, because I'm a PR here.'

Mr Lu's divestment has created some jitters on the market. An announcement on the Singapore Exchange website after midnight on Monday made known that he and affiliates sold their more than 197 million shares to Autumn Eagle, Hony Capital's special purpose investment vehicle, at 88.88 cents apiece, against a market price then of about $1.00.

Though the announcement stated that Mr Lu would stay on as chairman of the company, the market reacted almost instantaneously on the news of Mr Lu's divestment.

In a reversal of Monday's gain of 8 per cent to $1.08, Biosensors' shares shed 4 cents on Tuesday to close at $1.04 on the uncertainty that Mr Lu's divestment created.

A Web conference was called yesterday at 5.30pm, and investment firms Nomura, DBS Vickers, OCBC, Credit Suisse and Lim & Tan Securities phoned in to gain reassurance from Mr Lu himself, who was in Singapore.

In an interview with BT yesterday, Mr Lu said that the deal was made in the best and long-term interests of the company.

'There are limitations to what I could do for Biosensors. The company has grown beyond my capabilities. Not that I am leaving or quitting in any way. I just decided that it's time for some new blood.

'For a biotechnology company, you not only need the right talent, the passion and great ideas,' he said. 'But you also need deep pockets, otherwise the funding for the idea will dry up.'

Hony Capital was Biosensors' most genuine and persistent pursuer. 'It followed the company for more than six months. It's a well-known private equity firm and it has extensive knowledge about the pharmaceutical industry. And most importantly, it was upfront and honest,' he said.

He also said that he didn't entertain other interested parties in the same way he did Hony, although there were such parties over the years. 'I think I didn't shop around in that sense. It wouldn't have been a respectful thing to do.'

As for why he sold his stocks at a discount to the market price, he said the price was committed out of fairness to Hony and also, out of superstition. 'When we began discussions more than six months ago, the price was in the 60 to 70 cent range, never more. But it was only recently that the share price shot up. I wanted to be reasonable and equitable so we tried to strike a good balance. I always like a win-win.

'So, when we did the calculations of the 45-day average price, it came up to 88.88 cents. My birthday is Aug 8 and I was married on the same day. So I said, 'Eight is a lucky number, let's do it.' They liked it too. It was meant to be.'

Hony Capital has had prior experience in aiding similar biotech companies and, according to a report by Nomura, has invested in at least three in China.

With Biosensors focusing on gaining a larger market share in China with its 50 per cent joint venture, JW Medical Systems, Hony Capital is coming on board at the right time to lend its financial strength and expertise.

Mr Lu says he will continue as chairman of Biosensors for as long as he can. 'Biosensors is like the son I never had. But Biosensors needs to seek new adventures, needs to continue to build. There are new opportunities to explore and I believe that it's the right time for Hony, myself, the management team and shareholders to address an exciting market.'

Biosensors shares recovered some lost ground yesterday, adding 2 cents to end at $1.06.

Announcement of Conference Call

Biosensors International Group, Ltd regrets the technical difficulties that resulted in a poor communication of the conference call and webcast hosted by Mr Yoh-Chie Lu, Chairman of Biosensors.

In view of the unresolved technical problems this evening, the management of Biosensors has decided to reschedule the conference call and webcast to 5.30pm, 14 October 2010.

The webcast will be available via our corporate website at www.biosensors.com .

We regret the inconvenience and seek your understanding and look forward to your subsequent participation.

By Order of the Board

Kevin R.

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Is Biosensors a good buy?