Biosensors Reports Financial Results for Fiscal Year 2013

SINGAPORE, May 29, 2013 /PRNewswire/ -- 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, today announced financial results for its fourth fiscal quarter (Q4 FY13) and fiscal full year ended 31 March 2013 (FY13).

Highlights and Other Recent Updates:

• Q4FY13: Total revenue was US$88.8 million, compared to US$88.2 million last year while product revenue rose 17% year-on-year to US$76.4 million, the growth being partially offset by royalty revenue decline; product gross margin increased to 81% from 76% last year
• FY13: Total revenue rose 15% year-on-year to US$336.2 million; product revenue rose 32% year-on-year to US$278.5 million; product gross margin increased to 81% from 73% last year
• Obtained CE Mark approval for the pioneered, next-generation polymer-free drug-coated stent, BioFreedom™
• Obtained CE Mark approval in May for BioMatrix NeoFlex™
• Raised approximately US$240 million from note offering
• In May, acquired substantially all assets of Spectrum Dynamics (SD), a leader in advanced functional assessment technologies
• Recommended dividend of US$0.02 per share for the financial year ended 31 March 2013, subject to shareholders' approval

"FY13 marked another significant year for Biosensors on many fronts. Our product revenue continued to achieve a strong growth, despite the overall drug-eluting stent (DES) market facing increasing pressures and challenges. Our gross margin also showed substantial year-on-year improvement," said Biosensors' CEO Dr. Jack Wang. "We successfully obtained the CE Mark approval for BioFreedom -- our pioneered, next-generation polymer-free drug-coated stent; completed a fund raise to strengthen our financial muscles, and continued to generate positive clinical data evidencing the advantages of our major products. All of these achievements put us in a stronger position to continue to grow our company."

Performance Summary for Q4 FY13

For Q4 FY13, Biosensors reported total revenue of US$88.8 million, comparable to a year ago of US$88.2 million. Product revenue of US$76.4 million, a 17% increase over US$65.3 million in Q4 FY12. Correspondingly, IVP sales rose to US$73.3 million, up 18% from US$61.9 million in Q4 FY12, driven by increased DES sales. CCP sales revenue was US$3.1 million, compared to US$3.5 million in Q4 FY12.

Licensing and royalties revenue was US$12.4 million, down US$10.4 million or 46% from US$22.8 million in Q4 FY12.

Gross margin on total product sales was 81% for the quarter, up from 76% in Q4 FY12. The improvement was mainly attributable to a more favorable product mix as well as economies of scale.

Total operating expense as a percentage of product revenue for the quarter was 60%, compared to 56% in Q4 FY12.

In detail, the quarter's sales and marketing (S&M) expense was US$23.8 million; general and administrative (G&A) expense was US$11.4 million; research and development (R&D) expense, which included costs for new product development and testing, clinical trials, patent registration and regulatory approval, was US$10.1 million.

For the quarter, despite a US$10.4 million or 46% year-on-year decrease in royalty revenue, the Group's operating profit still achieved US$28.9 million, compared to US$35.8 million in the same period last year.

Excluding exceptional items, which comprise impairment of goodwill offset by write-back of provision for restructuring expenses and realization of translation difference on liquidation of a subsidiary, net profit for Q4 FY13 would have been US$29.8 million or basic earnings per share (basic EPS) of 1.73 US cents and diluted earnings per share (diluted EPS) of 1.70 US cents. This compares to a net profit of US$28.6 million or basic EPS of 1.66 US cents and diluted EPS of 1.63 US cents, for Q4 FY12 after excluding the fair value adjustments for warrants.

Including exceptional items, net profit for Q4 FY13 was US$29.6 million, or basic EPS of 1.72 US cents and diluted EPS of 1.70 US cents, compared to a net profit of US$27.2 million, or basic EPS of 1.58 US cents and diluted EPS of 1.55 US cents, for Q4 FY12.

Performance Summary for FY13

For the full year FY13, total revenue was US$336.2 million, a 15% increase from the fiscal year ended 31 March 2012 (FY12). Total product revenue was US$278.5 million, a 32% year-on-year increase while IVP revenue rose 35% year-on-year to US$264.9 million, primarily driven by growth in the Company's DES sales and the consolidation of JWMS' financial results starting from the third quarter of FY12 (Q3 FY12). CCP revenue was US$13.6 million, a 7% decrease from US$14.6 million in FY12.

Licensing and royalties revenue was US$57.7 million, down US$23.1 million or 29% from US$80.8 million in FY12.

Gross margin on total product sales was 81% for FY13, a significant improvement from 73% in FY12 attributable to more favorable geographical and product mix as well as greater economies of scale.

Total operating expenses accounted for 57% of product revenue in FY13, compared to 61% for FY12. In detail, S&M expense was US$90.0 million, G&A expense was US$40.6 million, while R&D expense was US$27.5 million.

For FY13, despite a US$23.1 million or 29% year-on-year decrease in royalty revenue, the Company's operating profit still achieved US$123.6 million, a 16% year-on-year increase from the same period last year.

Excluding exceptional items, which comprise a provision for restructuring expenses, fair value adjustment for warrants, realization of translation difference on liquidation of a subsidiary and impairment of goodwill, net profit for FY13 would have been US$111.6 million or basic EPS of 6.48 US cents and diluted EPS of 6.39 US cents. This compares to a net profit of US$101.0 million or basic EPS of 6.69 US cents and diluted EPS of 6.55 US cents, for FY12, after excluding the fair value adjustment for warrants, the one-off non-operating gain of US$279.6 million on re-measurement of the Group's interest in JWMS in the third quarter of FY12 and the impairment of goodwill.

Including exceptional items, net profit for FY13 was US$115.4 million or basic EPS of 6.70 US cents and diluted EPS of 6.60 US cents, compared to a net profit of US$364.3 million or basic EPS of 24.12 US cents and diluted EPS of 23.63 US cents for FY12.

The Company recently raised approximately US$240 million through the issuance of 4-year fixed rate notes with an interest rate of 4.875%, payable semi-annually in arrear. The Company's interest expense will increase in future periods as a result of issuing these notes.

Financial Guidance for FY14

For the fiscal year ending 31 March 2014 (FY14), management anticipates total revenue to grow by around 15% over FY13. This guidance is driven primarily by continued product revenue growth, expected commercialization of four new products including BioMatrix NeoFlex, and the newly acquired business of Spectrum Dynamics. The Company expects its royalty income to be similar to FY13.  

The Company's practice is to provide guidance on a full year basis only. This forecast reflects Biosensors' current and preliminary views, which are subject to change. It also excludes the potential impact from foreign exchange fluctuations, or any exceptional events and unforeseen circumstances that may occur.

"Looking ahead, our objective remains to further develop our DES business while seeking new growth opportunities. We are also excited about our CE Mark approval for BioMatrix NeoFlex. This represents another important step forward for the BioMatrix brand, improving our flagship product with enhanced deliverability," said Dr. Wang. "In the area of M&A, our recently-completed acquisition of Spectrum Dynamics' assets demonstrates our conviction to prudently expand our product offerings. With the completion, we will now focus on integrating Spectrum Dynamics' assets with Biosensors' existing businesses and actively expanding its business potential. We are also continuing to make good progress in our discussions with several other potential M&A targets. All in all, we are excited about the developments taking place in Biosensors which we believe will substantially increase shareholder value."

Dividend

The Board of Directors has recommended a dividend of US$0.02 per share for the financial year ended 31 March 2013, based on the Company's net income for the full year FY13. The Company has approximately 1.72 billion issued ordinary shares (excluding treasury shares) as at 31 March 2013. This recommendation is subject to shareholders' approval during the Company's next Annual General Meeting, and the actual dividend payment can only be determined on books closure date.

Biosensors' management will host an analyst conference call at 7:00 pm (Singapore time) on Wednesday, 29 May 2013 to discuss the financial results and provide an update on the Company's progress. A live audio webcast of this analyst conference call will be available through Biosensors' corporate website at www.biosensors.com on the day of the event.

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 BioMatrix™ family of drug-eluting stents and the recent launch of our Axxess™ self-expanding bifurcation drug-eluting stent, we are rapidly emerging as a leader in the global coronary stent market. The development of the BioFreedom™ drug-coated stent will further reinforce our market position.

All three stents incorporate Biolimus A9™ (BA9™), an anti-restenotic drug developed and patented by Biosensors specifically for use with 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, received CE Mark Approval in January 2013.

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)-6213-5777
Email: [email protected]

SOURCE Biosensors International Group, Ltd.