Biosensors Reports Increase in Product Revenue and Product Gross Margins

Aug 11, 2006, 01:00 ET from Biosensors International Group, Ltd.

    SINGAPORE, Aug. 10 /Xinhua-PRNewswire-FirstCall/ -- Biosensors
 International Group, Ltd. ("Biosensors" or the "Company"; Bloomberg: BIG
 SP) reported higher product revenue of US$7.9 million for the first fiscal
 quarter ended June 30, 2006 ("1Q FY07"), a 35 percent increase over US$5.9
 million in the corresponding quarter last year ("1Q FY06"). This was also a
 slight increase over the US$7.7 million reported in the previous quarter
 ("4Q FY06"). Revenue from its drug-eluting stent ("DES") systems grew to
 US$3.2 million in 1Q FY07 from US$457,000 in 1Q FY06 and remained unchanged
 from US$3.2 million reported in 4Q FY06, consistent with the Company's
     Product gross margin was also higher in 1Q FY07 at 47 percent compared
 to 43 percent in 1Q FY06. This reversed an earlier decline in 4Q FY06 where
 product gross margin was 33 percent, with some of the decrease in that
 quarter due to a one-time higher provision for material scrap relating to
 manufacturing ramp-up of the DES line.
     Mr. Yoh-Chie Lu, Chairman and CEO of Biosensors said that the Company
 is pleased that the cost management strategies it implemented have shown
 some initial positive impact during the first fiscal quarter. He added, "We
 will continue to review and streamline our operational structure and
 requirements to further fine-tune our operations and enhance efficiencies."
 In May of this year, Mr. Lu took on additional responsibilities for
 management of the Company's operations. He has since implemented plans that
 include cost management and operations-related strategies to enhance the
 operational readiness of Biosensors in preparation for the launch of
 BioMatrix(R). The Company is currently awaiting CE Mark regulatory approval
 for its BioMatrix DES for commercialization in the European Union.
     During 1Q FY07, R&D expenses, which include new product research &
 development, clinical trials, patent registration, and costs associated
 with regulatory approvals, increased to US$5.1 million from US$3.0 million
 in 1Q FY06. However, this was lower than the US$7.0 million reported in 4Q
 FY06. Similarly, sales and marketing expenses were US$2.4 million in 1Q
 FY07, compared to US$2.0 million in 1Q FY06 and US$3.0 million. General and
 administrative expenses were US$3.9 million in 1Q FY07, compared to US$3.2
 million in 1Q FY06, and recorded a slight increase of US$0.3 million
 compared to US$3.6 million in 4Q FY06.
     Prior comparative expenses have been adjusted to include share-based
 compensation expenses to be consistent with the current quarter's
     "While we remain mindful on the need to manage costs, we need to pace
 ourselves in our levels of spending and will continue to focus our spending
 particularly on maximizing the growth of the Company through prudent
 investments in R&D activities and enhancing the sales & marketing
 infrastructure. As such, when we begin our LEADERS and STEALTH II clinical
 trials, we will expect related expenses to increase, all of which are in
 line with our expense guidance provided recently", said Ms. Chato Abad,
 Chief Financial Officer.
     For 1Q FY07, the Company reported a net loss of US$6.7 million, or 0.74
 US cent loss per basic and diluted share compared to a net profit of
 US$758,000, or 0.09 US cent earnings per basic and diluted share in 1Q
 FY06, due largely to considerably higher licensing revenue received in 1Q
 FY06. The net loss in 1Q FY07 was significantly lower than the net loss of
 US$9.7 million in 4Q FY06, or 1.08 US cent loss per share.
     Mr. Lu commented: "Our industry is focused on longer term results. As a
 company, we will also focus our efforts on achieving long term success by
 continuing to challenge ourselves to further improve and enhance our
 organizational infrastructure while commercializing innovative, proprietary
 products to support our ultimate goal of becoming a leading DES player."
     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
 biodegradable polymer and a proprietary anti-restenotic drug. It is
 pursuing two separate drug-eluting stent programs, BioMatrix(R) 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
     Biosensors International Group
      Ms Tina Lim, Executive, Corporate Communications
      Tel:   (65) 6213 5712
     Media Relations / Investor Relations Firm
      United States
      Allen & Caron Inc.
      Mr. Matt Clawson
      Executive Vice President, Investor Relations
      Tel:   (1) 949 474 4300

SOURCE Biosensors International Group, Ltd.