Biosensors Announces Record Product Revenue For Fiscal Second Quarter, First Half Results

    SINGAPORE, Nov. 11 /Xinhua-PRNewswire-FirstCall/ -- Biosensors
 International Group, Ltd. ("Biosensors" or "the Company", Bloomberg: BIG SP),
 a developer, manufacturer and marketer of innovative medical devices for
 interventional cardiology and critical care procedures, today announced that
 strong results from the commercial launch in Europe of its first drug-eluting
 stent (DES) drove a significant increase in DES sales in the 2006 fiscal
 second quarter ended September 30, 2005 (Q2 FY 06) over the corresponding
 period in FY05.  In addition, the Company reported that its planned
 acceleration of research and development programs progressed well during the
 period and that R&D expenditures, paired with additional planned investments
 in R&D, will lead to timely initiation of important clinical trials for the
 Company's DES products in the coming periods.
     Biosensors' Chairman and CEO Yoh-Chie Lu said that this quarter had record
 product revenues, boosted by increased DES sales.  The Company has also
 experienced six months of solid progress following its IPO in May.  Mr. Lu
 added, "Since the IPO we have received CE Mark regulatory approval for our
 first DES product, strengthened our distribution network by enrolling key
 distributors in the major European markets, secured an important US patent
 that establishes a proprietary platform for our bioresorbable polymer
 technology and reported positive 12-month STEALTH clinical trial results for
 our BioMatrix(TM) DES system."
     Revenues from all product sales for Q2 FY 06 were US$7.0 million, a 44
 percent increase over the US$4.9 million in product sales for same quarter in
 FY 05.  This strong growth in revenue is attributable to a ramp up in sales of
 the Company's DES product line in the last two months of the quarter,
 following a successful product launch in targeted European and Asian countries
 after the Company received the CE Mark for its first DES in July this year.
 The Company's DES product line contributed sales of US$1.9 million in Q2 FY
 06, up from US$251,000 in Q2 FY 05 and from US$457,000 in Q1 FY 06.  The
 Company has signed up more than 50 distributors with more than half already
 fully trained and actively selling the product line.  The Company will
 continue to expand its distribution network in preparation for its launch of
 BioMatrix(TM) which will be the Company's flagship DES program.
     Sales of traditional interventional cardiology products, including bare
 metal stents and delivery catheters, also grew from US$2.1 million in Q2 FY 05
 to US$2.5 million in Q2 FY 06.  Sales of critical care products, including
 blood pressure transducers and thermodilution catheters were US$2.7 million in
 Q2 FY 06 compared to US$2.6 million in Q2 FY 05.
     Mr. Lu said, "Sales of our DES product line, following their launch in
 Europe, have exceeded our internal projections and have given us a great deal
 of confidence in our strategy for this line of products.  Although it is too
 early to draw long-term conclusions on our ultimate success in these markets,
 our distribution partners in locations across Europe and Asia are reporting
 early success and a receptive environment for the product line.  Our strategy
 is to penetrate the DES market with Axxion(TM) and build as much market share
 as possible to pave the way for our launch of BioMatrix(TM), which we believe
 has technological advantages that can contribute continued market share
 growth.  Based on this strategy, we anticipate that Axxion(TM) will be the
 primary engine for revenue growth until we receive CE Mark approval for the
 BioMatrix(TM) product line."
     The Company has submitted its flagship BioMatrix(TM) DES system for CE
 Mark regulatory approval and expects to receive approval in the first half of
 calendar year 2006.  It received CE Mark approval for the Axxion(TM) DES
 system in July 2005.
     For Q2 FY 06, the Company reported a net loss of US$6.0 million, or 0.69
 US cent loss per basic and diluted share, compared to a net loss of US$3.5
 million, or 0.52 US cent loss per basic and diluted share, for Q2 FY 05.  The
 reported loss was principally due to increased investments in R&D, expenses
 for sales and marketing efforts relating to the launch of the DES product line
 in Europe, as well as continued planned spending in preparation for clinical
 trials related principally to the BioMatrix(TM) line.  These expenses were all
 in line with internal estimates.
     Mr. Lu further commented on the increase in R&D investment, saying, "We
 believe that our bioresorbable polymer technology is a viable solution to the
 safety issues that are facing the DES market today.  This is an excellent
 position to be in, but there is much to be done.  We are investing in the
 short-term to perform the necessary clinical trials and build an
 infrastructure so that the potential long-term rewards can be far greater than
 if we did not make these investments and merely managed the company for near-
 term profitability."
     Mr. Lu continued, "Information we have received from customers around the
 world, recently confirmed by several presentations at the Transcatheter
 Cardiovscular Therapeutics (TCT) conference in Washington DC, indicates that
 the DES market is clearly moving in a direction that focuses on patient
 safety, with concerns expressed relating to stents coated with durable
 polymer.  Many cardiologists are keen to have a DES that reverts to a bare
 metal stent after the drug is fully eluted.  Our technology, intellectual
 property and competitive position give us some distinct advantages in this
 area.  In order to gain a fair share of this US$6 billion market, we need to
 aggressively collect clinical data at respected institutions around the world.
 We have set out to do just that."
     Licensing revenue for the quarter was negligible as most milestone
 payments from licensing agreements were received in prior periods.
     Revenues from product sales for the first half of fiscal year 2006 ended
 September 30, 2005 (1H FY 06) were US$12.9 million, a 30 percent increase over
 the US$9.9 million for the same period in FY 05. DES products contributed
 sales of US$2.4 million in 1H FY 06, up from US$266,000 in 1H FY 05.  Sales
 revenue for traditional interventional cardiology products grew from US$4.5
 million in 1H FY 05 to US$5.3 million in the FY 06 first half.  Critical care
 products contributed US$5.3 million in the FY 06 first half compared to US$5.1
 million for the same period in FY05.
     For 1H FY 06, the Company reported a net loss of US$5.3 million, or 0.63
 US cent loss per basic and diluted share, compared to a net profit after
 taxation of US$11.3 million, or 1.68 US cent earnings per basic share and 1.45
 US cent earnings per diluted share, for the prior year period in which the
 Company collected more than US$25 million in non-recurring licensing revenue.
     The balance sheet remained healthy at September 30, 2005 as cash and cash
 equivalents totaled US$86.8 million, and equity attributable to shareholders
 totaled US$101.1 million.
 
     About Biosensors International Group, Ltd.
     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, an evolving
 therapy that is rapidly gaining market share from traditional therapies such
 as bare-metal stenting and open-heart surgery.  Biosensors has internally
 developed technology to address each component of a drug-eluting stent system,
 including a stent, a stent delivery catheter, a bioresorbable polymer and a
 proprietary anti-restenotic drug.  It is pursuing two separate drug-eluting
 stent programs, BioMatrix(TM) and Axxion(TM), and has licensed aspects of its
 drug-eluting stent technology to four companies.
 
     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 Contact Information
 
     Biosensors International Group
      Ms Tina Lim, Executive, Corporate Communications
      Tel:   +65-6213-5712
      Email: tlc.lim@biosensors.com
 
     For investor related enquiries, please write to ir@biosensors.com
 
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      Mona Leong
      Senior Consultant
      Tel:   +65-6737 4844 / Hp: +65-9187-4449
      Email: monaleong@wer1.net
 
     Allen & Caron Inc.
      Matt Clawson
      Executive Vice President, Investor Relations
      Tel:   +1-949-474-4300
      Email: matt@allencaron.com
 
 

SOURCE  Biosensors International Group, Ltd.