Singapore-based stent-maker Biosensors International (SGX:B20) lowered its full-year sales outlook, reporting softness in the stent market, pricing pressures and delays in anticipated royalty growth in Japan.
The company’s profits sank by 60% during the 3 months ended September 30, the company said, even as sales increased 4%.
Biosensors reported profits of $11.3 million, or 65¢ per diluted share, on sales of $83 million during its 2nd quarter of 2014. That compared with profits of $28.20, or $1.61 per share, on sales of $79.8 million during the same period last year.
The device maker said that sales for the rest of this year look "weak," despite double-digit sales growth for its drug-eluting stents. Biosensors now projects "moderately positive" overall revenue growth for the year.
"Although we have adjusted our full-year financial guidance, we remain confident about our company’s growth prospects over the long run," CEO Dr. Jack Wang said in prepared remarks. "Based on our recent approvals, we are working on multiple product launch plans to generate new revenues for the company. With the changing market conditions, management is implementing measures to enhance efficiency and improve profitability by restructuring its cost and operational compositions. We believe that the reorganization is necessary for us to better position ourselves to deliver our long-term goals."
Biosensors expects "key regions" such as Europe, the Middle East and Africa as well as the Asia-Pacific region to lead growth, while China will continue to lag. The device maker’s co-promotion partnership with Terumo Corp. (TYO:4543) is also "on track," according to the company.
Biosensors shares gained 4.5% today on the Singapore exchange, where they were trading at 0.93 SGD by the end of the day.