Biosensors Reports Continued Strong Sales and Record Profits in the Fourth Quarter of Fiscal Year 2012

SINGAPORE, May 29, 2012 /PRNewswire-Asia/ -- 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 FY12") and fiscal year ended 31 March, 2012 ("FY12").

Q4 FY12 Highlights:

• Robust total revenue of US$88.2 million, representing 98% year-on-year growth
• Terumo Corporation ("Terumo"), Biosensors' licensing partner, continued strong momentum in the sales of its Nobori drug-eluting stent ("DES"), resulting in a 378% year-on-year increase in Biosensors' licensing and royalties revenue to US$22.8 million
• Net profit excluding exceptional items increased 72% year-on-year to US$28.6 million
• Generated operating cash flow of US$32.4 million in Q4 FY12, a 143% increase from a year ago

FY12 Full Year Highlights:

• Total revenue of US$292.1 million, an 87% growth, exceeding the Company's financial guidance of 70% - 80% year-on-year growth
• Terumo's strong revenue growth for its Nobori DES contributed to a 370% year-on-year increase in Biosensors' total licensing revenue to US$80.8 million in FY12
• FY12 net profit excluding exceptional items increased 92% year-on-year to US$101 million
• Generated operating cash flow of US$81.0 million in FY12, a 192% increase from a year ago
• Successfully consolidated JW Medical Systems Ltd. ("JWMS") in early October 2011 and included its half-year financial results

"We are delighted to have achieved a year of record revenues and profits and also generated strong operating cash flow. We have exceeded our financial guidance for the full fiscal year. This is due to the significant licensing revenue stream, coupled with the sustained robust growth in the sales of our Interventional Cardiology Products ('IVP') and the successful consolidation of JWMS," commented CEO Dr. Jack Wang. "In addition, we announced multiple positive presentations for our products at major scientific meetings such as the Transcatheter Cardiovascular Therapeutics ('TCT') conference. These encouraging scientific data are significant as they validate our differentiated technology and will help us continue to strengthen our competitive position. Overall, FY12 was a year full of accomplishments for Biosensors. We would like to thank our whole team for their hard work over this past year."

Performance Summary for Q4 FY12

For Q4 FY12, Biosensors reported total revenue, including licensing and royalties, of US$88.2 million, a 98% increase over US$44.5 million in the fourth quarter of fiscal year 2011 ("Q4 FY11"). Correspondingly, IVP sales rose to US$61.9 million, up 70% from US$36.5 million in Q4 FY11. This was largely due to the full-quarter consolidation of JWMS' results and continued growth in the sales of the Company's BioMatrix™ family of DES. Sales revenue of critical care products ("CCP") was US$3.5 million, compared to US$3.3 million in the same period last year.

Licensing and royalties revenue in the quarter grew to US$22.8 million, a year-on-year increase of 378% from US$4.8 million in Q4 FY11.

Gross margin on total revenue improved to 82% for the quarter from 78% in the previous quarter and 79% in Q4 FY11. Gross margin on total product sales was 76% for the quarter, compared to 70% in the previous quarter and 77% in Q4 FY11. Adjustment entries for JWMS' acquisition, currency fluctuations, geographical and product mix, as well as overall market conditions contributed to this difference.

Overall operating expense as a percentage of total revenue for the quarter was 41% compared to 47% in Q4 FY11.

In detail, the quarter's sales and marketing ("S&M") expense was US$18.9 million; general and administrative ("G&A") expense was US$10.9 million; research and development ("R&D") expense, which include costs for new product development and testing, clinical trials, patent registration and regulatory approval, was US$6.1 million. As a percentage of total revenue, Q4 FY12 S&M expense was 21%, compared to 27% in Q4 FY11; G&A expense was 12% compared to 11%, while R&D expense was 7% versus 10%.

For the quarter, the Group's operating profit was US$35.8 million, representing a 146% year-on-year increase compared to the same period last year.

Excluding exceptional items which comprise of the fair value adjustments for warrants, net profit for Q4 FY12 would have been US$28.6 million or basic earnings per share ("basic EPS") of 1.66 US cents and diluted earnings per share ("diluted EPS") of 1.63 US cents. This compares to a net profit of US$16.7 million or basic EPS of 1.51 US cents and diluted EPS of 1.46 US cents for Q4 FY11 after excluding US restructuring charges and fair value adjustments for warrants.

Including exceptional and non-operating items, net profit for Q4 FY12 was US$27.2 million or basic EPS of 1.58 US cents and diluted EPS of 1.55 US cents, compared to a net profit of US$18.2 million or basic EPS of 1.65 US cents and diluted EPS of 1.60 US cents for Q4 FY11.

Performance Summary for FY12 Full Year

Total revenue for FY12 was US$292.1 million, an 87% year-on-year increase from US$156.6 million in the fiscal year ended 31 March 2011 ("FY11"). Total product revenue in FY12 was US$211.4 million, up 52% from US$139.4 million in FY11. IVP revenue rose 56% to US$196.7 million compared to US$126.4 million for FY11, primarily driven by 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$14.6 million, a 13% increase from US$13.0 million a year ago.

Licensing and royalties revenue in FY12 grew to US$80.8 million, a year-on-year increase of 370% from US$17.2 million in FY11.

Gross margin on total revenue was 80% for the year, compared to 78% in the same period last year. Gross margin on total product sales was 73% for FY12, compared to 75% in FY11. Adjustment entries for JWMS' acquisition, currency fluctuations, geographical and product mix, as well as overall market conditions contributed to this difference.

Overall total operating expenses accounted for 44% of total revenue in FY12, compared to 50% in FY11.

In detail, FY12 S&M expense was US$71.3 million, G&A expense was US$30.6 million, while R&D expense was US$19.8 million. As a percentage of total revenue, FY12 S&M expense was 24% compared to 28% in FY11; G&A expense was 10% versus 11%, while R&D expense was 7% versus 10%.

In FY12, the Group's operating profit was US$106.5 million, representing a 139% year-on-year increase from the same period last year.

The Company completed its acquisition of the remaining 50% equity interest in JWMS on 3 October 2011, and started consolidating JWMS' operating results in Q3 FY12. As a result, the Company recorded a one-off non-operating gain of US$279.6 million on re-measurement of the Group's interest in JWMS in Q3 FY12. Excluding this gain and all other exceptional items, net profit for the FY12 full year would have been US$101.0 million or basic EPS of 6.69 US cents and diluted EPS of 6.55 US cents. For FY11, net profit excluding exceptional items would have been US$52.6 million or basic EPS of 4.85 US cents and diluted EPS of 4.72 US cents.

Including the one-off gain and exceptional items, net profit for FY12 was US$364.3 million or basic EPS of 24.12 US cents and diluted EPS of 23.63 US cents, compared to a net profit of US$43.3 million or basic EPS of 3.99 US cents and diluted EPS of 3.88 US cents for FY11.

Financial Guidance

For the fiscal year ending 31 March 2013 ("FY13"), management anticipates total revenue to grow by 20% to 30% over FY12, driven by continued strong DES revenue growth as well as modest licensing and royalty revenue increase. The Company expects the overall FY13 profitability, excluding exceptional items, to increase but anticipates that the higher revenues will be partially offset by increased expenses required to support revenue growth and development of future products.

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. At the same time, the Company has taken into consideration the expectation that some countries will introduce DES price reductions. However, the actual impact could be different from the Company's expectation. The forecast also excludes the potential impact from foreign exchange fluctuations, or any exceptional events and unforeseen circumstances that may occur. 

"Despite a volatile global environment, we are confident that our overall growth prospects remain positive," concluded CEO Dr. Jack Wang. "Our financial target is based on the continued sales growth of our core DES franchise, as well as a modest increase in our licensing revenues. On the operational front, the recent development of our new manufacturing, R&D innovation centre and headquarters in Singapore is a further step to enhance our infrastructure for future growth. We will also continue to invest in R&D and explore various initiatives to capture different growth opportunities. Overall, we have plans in place to achieve our long-term goal of transforming Biosensors into a first-class global medical device company."

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 drug-eluting 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, is currently undergoing clinical evaluation.

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
Email: [email protected]

SOURCE Biosensors International Group, Ltd.