Prepared by: Anna HAN Huixin Executive Summary; Industry Analysis and Risk Assessment; Proofread Report.

Angeline HO Hwee Min Investment thesis, Internal Analysis Qualitative Analysis; Proofread report; Compiled Presentation. Janna KEE Jun Ling Executive Summary; Business Model; Sustaining Growth; Concluding Words; Proofread Report. Zita SETIAWAN Executive Summary; Quantitative Analysis: Financial and Investment Metrics; Proofread Report

TABLE OF CONTENTS

Executive Summary ........................................................................................................................................................ 3 Introduction ..................................................................................................................................................................... 4 Investment Thesis ........................................................................................................................................................... 4 High Growth Potential ................................................................................................................................................... 4 The First Biodegradable DES and Strong Clinical Trial Results ................................................................................... 4 Access to Strategic Markets .......................................................................................................................................... 4 Healthy Financial Position ............................................................................................................................................. 5 Business Model ............................................................................................................................................................... 5 Revenue Drivers and Competitive Strategy .................................................................................................................. 5 Costs ............................................................................................................................................................................. 5 Products ........................................................................................................................................................................ 6 Business Process .......................................................................................................................................................... 6 Industry Analysis and Risk Assessments .................................................................................................................... 6 Industry Analysis ........................................................................................................................................................... 6 Internal Analysis ............................................................................................................................................................ 7 Risk Assessments ......................................................................................................................................................... 8 Quantitative Analysis: Financials and Investment Metrics ....................................................................................... 8 Balance Sheet Analysis and Earnings per Share Projections ...................................................................................... 8 Peer Comparison .......................................................................................................................................................... 8 ROE...................................................................................................................................................................... 8 Asset Turnover ..................................................................................................................................................... 9 Enterprise Value to EBITDA................................................................................................................................. 9 Gearing Ratio ..................................................................................................................................................... 10 Current Ratio ...................................................................................................................................................... 10 Qualitative Analysis: Corporate Governance and Management Team.................................................................... 11 Good Corporate Governance ...................................................................................................................................... 11 Key Management Team .............................................................................................................................................. 11 Sustaining Growth ........................................................................................................................................................ 11 Concluding Words ........................................................................................................................................................ 12 References ..................................................................................................................................................................... 13

BIOSENSORS
INVESTOR RELATIONS

EXECUTIVE SUMMARY This report is intended to portray a clear investment thesis for existing and potential investors. Biosensors International (Biosensors or The Group) is an emerging player in the interventional cardiology and critical care medical devices industry, striving to develop innovative products that positively impact human lives. The company was established in 1990 by Singaporean Yoh-Chie Lu, starting as a contract manufacturing company for critical care products. It has since grown into a global company with its own in-house research and development and products specializing in drug-eluting stents (DES). In 2005, Biosensors was listed on the Singapore Exchange. Four reasons why investors should invest in the Group have been identified in this report. Firstly, there is high growth potential in the DES market. Coronary artery disease (CAD) is a leading cause of death worldwide, spurring the demand for stents. The global stents market is expected to grow at a CAGR of 9.5% to reach $25.2 billion by 2016. Secondly, BioMatrix, the Groups star product, is the first DES that uses biodegradable polymer, hence having a first-mover advantage over its competitors. Thirdly, Biosensors is well positioned to access the China DES market due to its 100% stake in JWMS as of January 2012. Biosensors has also licensed its BioMatrix to Terumo Corporation, allowing the company to access the Japan market. The US is the next target market for Biosensors to enter as it represents 56% of the global DES market. Lastly, the Group has a healthy financial position as shown by its improving ROE. In 2011, the earnings per share grew by 45.47% as compared to the previous year it is expected to rise steadily over the years. This report also identifies risk factors in the industry relevant to Biosensors. As a small company in the medical device industry, Biosensors is disadvantaged when forming preferred-supplier agreements with large hospitals that prefer to buy all their products from one company. In the healthcare industry where there are regulations requiring complete submissions of clinical trial and efficacy data, Biosensors has to undergo a longer time before new products can be commercialized. In addition, the declining prices of DES and competition from local manufacturers are also a risk for the Group. In conclusion, Biosensors is highly specialized with a firm understanding of the healthcare regulatory and approval processes. To shape its competitive edge, the Group has extensive research and development measures in order to stimulate innovation and ensure the quality of its products, of which DES is its current focus. In addition to its expertise and experience, Biosensors addressable markets are substantial with significant growth potential. All these contribute to Biosensors historical and future growth, making the company an attractive investment.

INTRODUCTION The Biosensors International group of companies develops, manufactures and markets innovative medical devices for interventional cardiology and critical care procedures. The Group aims to improve patients' lives through pioneering medical technology that pushes forward the boundaries of innovation. Singaporean Yoh-Chie Lu, who first founded the company as a contract manufacturing company for critical care products, established the company in 1990. INVESTMENT THESIS High Growth Potential Coronary artery disease (CAD) is a leading cause of death worldwide with annual medical costs amounting to US$150 billion, spurring the demand for stents. The global stents market for coronary and peripheral procedures was valued at $16 billion in 2011, and is expected to grow at a CAGR of 9.5% to reach $25.2 billion by 2016. The major driving factor for these markets would be the increasing demand for minimally invasive endovascular treatment. As the incidence cases of coronary and peripheral artery diseases continue to rise along with increasing trends in co-morbid conditions such as obesity and diabetes, the vascular interventional devices market for treating these diseases is showing significant growth. In particular, Asia Pacific countries are experiencing rapid economic growth, greater access to affordable health care and an expanding elderly and obese population. The stents used in interventional procedures represent the largest segment of the market. In the global stents market, DES contributed the largest share with 76% of the total market, generating revenues of $8.9 billion in 2011, and is expected to reach $13.7 billion by 2016. The key driving factors for the growth of the DES market are expected to be 1. World-wide increase in patient population that require stenting 2. Acceptance of DES as a preferred and more effective means of treatment 3. Reimbursement of stents by government health care plans With global trends heading towards the DES market, it indicates large market potential for Biosensors and high growth of the industry, which the Group can leverage on for the next three years. The First Biodegradable DES and Strong Clinical Trial Results BioMatrix is the worlds first commercially available DES that addresses the issue of late stent thrombosis giving the Group a first-mover advantage. Unlike earlier generations of DES, BioMatrix employs a biodegradable polylatic acid polymer, which breaks down into water and carbon dioxide after serving its purpose. Subsequently, BioMatrix was combined with Biosensors own anti-restenotic drug Biolimus A9 to form BioMatrix flex, an improved version that was shown to lead to significantly lower cardiac death in the high risk group among competitors during clinical trial. Biosensors has been supported by strong clinical trial results collected over three years. The data from its LEADERS clinical trials has also proven that BioMatrix is not inferior to leading competitor products such as Johnson & Johnsons Cypher Select DES. Access to Strategic Markets The China Market According to industry estimates, the China stent market is worth approximately US$500 million. Biosensors has the critical advantage of being one of the new entrants in the DES market in China through its recent acquisition of Shandong Weigaos JW Medical Systems (JWMS). JWMS is one of the top three DES players in China with a strong distribution network nationwide with around 25% share in the domestic medical equipment market. With cardiovascular disease and death rates expected to increase in China by as much as 73% by 2030 and the Chinese governments recent announcement of the infusion of $124 billion into the country's health care system in 2011, Bionsensors is well ahead of its global competitors in the China Market with its leading product, BioMatrix, awaiting approval from the Chinas State Food and Drug Administration (SFDA) to be marketed in China. The Japan Market In Japan, Bionsensors partnered with Terumo Corporation, Japans leading medical device company that manufactures and sells its own brand Nobori DES exclusively in the home market. By licensing the BioMatrix

technology to Terumo, the Japanese firm is allowed to market Nobori stents outside of the US and Japan on a nonexclusive basis. A license fee is then paid to Biosensors on a fixed percentage of the amount of sale of the Nobori stents. Nobori home market in Japan has an estimated potential of US$600 US$800 million per year. Upon receiving approval for its sale in May 2011, the document released by Japans Ministry of Health, Labour and Welfare shows that the company has captured 30% of the market share. Terumo targets to achieve 20 billion in Nobori sales for FY March 2012, of which Biosensor would receive a share of the sale estimated at $US 66 million. This partnership also increases the visibility of Biosensors as Terumo endorses and recognizes the superiority of the BioMatrix technology. The US Market The Group is considering entering the US DES market the largest in the world with 56% of global DES market share. With Biosensors strategic acquisition of technologies from US companies CardioMind Inc. (US$1.0 million) and Devax Inc.s Axxess DES system (US%5.7 million), Biosensors is in a favourable position to develop superior products to compete with big player in the US market. Healthy Financial Position Despite the intensive competition within the industry, there have been positive changes in Biosensors ROE, mainly affected by increasing profit margin throughout the years. The Group finances its growth mainly through equity its earnings are relatively more stable. In 2011, the earnings per share grew by 45.47% as compared to the previous year it is expected to rise steadily over the years. In addition, the Group has enhanced their shareholder profile with the entrance of Hony Capital, a leading global investment firm and added Atlantis Investment Management (Hong Kong) and Ever Union Capital to their investor group. The addition of these investors has strengthened their balance sheet to support further expansion plans. With its potential growth, Biosensors should provide good capital appreciation to their investors. BUSINESS MODEL Revenue Drivers and Competitive Strategy There are three principal components of their revenue: Interventional cardiology products (81% of total revenue for FY2011) Critical care products (8% of total revenue for FY2011) Licensing revenue. (11% of total revenue for FY2011) The main source of revenue comes from interventional cardiology, especially the BioMatrix family of DES, which made significant contributions to its total revenue and net profit growth of 35% in FY 2011. With the growth of the DES market, which is capturing market share from traditional cardiovascular therapies, and their commitment to it, they continue to meet and exceed revenue targets year on year. Another key source of revenue comes from their joint venture company with Shandong Weigao, JW Medical Systems Ltd (JWMS). Profit after taxes increased from US$14.8 million in FY2010 to US$19.2 million in FY2011. Costs Biosensors cost structure consists of sales and marketing expenses, general and administrative expenses, R&D, and other operating expenses. The biggest cost item is sales and marketing (50.7% of total operating expenses in FY2011), helping to reinforce their brand and global presence through trade shows and other marketing activities. R&D also accounts for a significant proportion of its costs due to the intense competitive environment and rapid changes in technology where products can be displaced overnight (19.2% of total expenses in FY2011). High R&D cost is also reflected in the costs for conducting clinical trials.

Products Within the interventional care cardiology product line, Biosensors offers drug-eluting stents, bare metal stents, and angio-plasty catheters; for the critical care product line, they offer pressure monitoring kits, vascular catheters, arterial blood sampling kits, and blood pressure transducers, used in open-heart surgeries. Drug Eluting Stents (DES) TM TM The BioMatrix Flex and AXXESS are Biosensors main DES products, which account for a significant proportion of its product revenue. They have three major components: the stent/delivery catheter, the polymer, and TM TM the drug. The unique S-Stent design allows for greater flexibility and efficient drug release, while the Biolimus A9 TM or BA9 is 10 times more dissolvable than sirolimus, another brand of immunosuppressant drug. Biosensors licenses the stent designs and drug to other companies as a source of revenue too. Business Process Biosensors has a growing global presence, especially in Asia and Europe. They are involved in developing, manufacturing, and marketing its products. Having control over these processes means that they are able to control pricing and licensing of products. The development process How Biosensors creates value The first step in the value creation process is in-house R&D. The second step is to conduct pre-clinical trials on animals, to test the safety. The third stage involves human clinical trials. These are conducted in small and large scales in different countries and clinical centres. Upon successful clinical trial results, they submit the technologies or products for regulatory approvals. For example, Devax Inc., whose DES wing was acquired by Biosensors in 2010, TM conducted AXXESS System trials in clinical centres in 16 clinical centres in three countries before it obtained the Conformit Europenne (CE) mark of approval. The Limus Eluted from A Durable versus ERodable Stent coating (LEADERS) trial is one example of Biosensors TM research excellence. The clinical trial featured a direct comparison between Biosensors BioMatrix Flex , an A9eluting stent with a biodegradable polymer and a sirolimus-eluting stent with a durable polymer. Results showed TM significantly better safety and efficacy of the BioMatrix Flex . The R&D function is concentrated in the US, Holland, Singapore, and India, countries which are prominent in R&D. The manufacturing process How Biosensors delivers value Once regulatory approval such as the CE mark, which allows selling in the European Union, is obtained, the commercial manufacturing process begins. Biosensors manufactures and also licenses its technologies to companies that have expertise in manufacturing specialty stents. Manufacturing is mainly carried out in Singapore, Holland, India and China. The marketing process How Biosensors captures value Biosensors handles marketing activities in-house for greater efficiency and impact. To gain greater mindshare among potential customers, and thus market share, they actively build and promote their brand through a variety of marketing activities and participate in trade shows. Marketing activities are mostly carried out from Japan, Switzerland, and France, where the targeted consumers are concentrated. INDUSTRY ANALYSIS AND RISK ASSESSMENT Industry Analysis Competitive Rivalry (High) The DES market is highly consolidated with three key players Boston Scientific, Medtronic and Abbott capturing 92% of the market. The top two players are Boston Scientific and Abbot, both having similar market share in the US. Biosensors is considered an emerging market player with a growing presence in Asia with innovative DES technologies but overall fewer product offerings compared to its counterparts.

Suppliers (Low) There are no substantial threats from suppliers as the numbers of suppliers in the DES market for manufacturing materials are many. Customers (Medium) There is a trend in the rise of preferred-supplier agreements between large hospitals (or groups of hospitals) and device manufacturers. Preferred-supplier agreements allow hospitals to exploit volume-based discounts by bulk purchasing, as seen by the decrease in monthly median prices paid by hospitals over the years. Threat of New Entrants (Low) Large device manufacturers have in-house R&D and resources to build a large product portfolio in order to act as hospital suppliers across multiple categories and exploit the preferred-supplier position with large hospital groups. In addition, stringent clinical trial testing procedures are in place to validate the benefits of a product making it more difficult and longer for products and technologies to be approved. These factors create high barriers for new entrants. Substitutes Bare metal stents (BMS) are the closest substitutes to DES. The main difference between BMS and DES is the absence of coating on the BMS. The much lower cost of BMS is one of the major resistors of growth for the DES market. Also, according to Lemos et al. (2003), BMS is more cost effective than DES. The development of bioengineered stents and nanoparticles are currently in the pipeline and has also been speculated as real alternatives to DES. Internal Analysis Strengths First Biodegradable DES Acquisition of JWMS Strong clinical trial results Opportunities Emerging markets especially China J&J exits the US market Weaknesses Small product portfolio Shorter clinical trial history Threats Possible target for acquisition by leading players Intense Competition

Strengths Biosensors DES products are comparably more innovative than competitors as it uses a biodegradable polymer type. BioMatrix being the worlds first commercially available DES gives the Group a first mover advantage. Biosensors acquisition of JWMS is very significant as it holds about 10% of the Chinese DES market giving the Group leverage in the competition for market share in China. Biosensors BioMatrix is supported by strong clinical results collect over three years and the Group is participating in the Global LEADERS II trial which would involve a head to head comparison of BioMatrix Flex against a market leading DES with a durable polymer. Positive results of clinical trials will add credibility and strengthen Biosensors position in the DES market. Weaknesses Biosensors, only listed in 2005, has a much smaller product portfolio compared to big international players such as Boston Scientific and Abbott. In addition, as Biosensors is considered new compared to the big players, a shorter clinical trial history will lose out as interventional cardiologist and patients would naturally prefer a stent that has a longer time tested history of safety and efficacy. Opportunities China is one of the emerging markets for DES. With the strategic partnership with JWMS, Biosensors is well positioned against the big players. In addition, with J&J, a strong competitor, announcing in June 2011 its departure from the DES market, it leaves room for Biosensors to enter the US and fight for market share. Threats Due to Biosensors innovative technology and market penetration in Europe and APAC, it is an attractive target for acquisition. Because of its small size, it may face hostile takeovers by leading players. Moreover, the medical device industry is inherently competitive; R&D processes in the healthcare industry are generally costly and over a long duration, resulting in a relatively long lead time from R&D to commercial production and sales.

Risk Assessments Risk Factors Preferred-supplier agreements from large hospitals leave smaller companies like Biosensors out Declining prices of DES since 2007 might erode profits Risk Management Biosensors strategic partnership with JWMS helps overcome the current lack of product portfolio diversity. There is a strategic move towards being a company with multiple interventional products, not just relying on DES. Biosensors production capacity at Singapore and Weihai (China) is estimated to be sufficient for another 2 years and has additional capacity for new products. The paradigm-shifting LEADERS trial was the first randomized, multicenter, all-comers trial to compare Biosensors biolimus-eluting stent with a market-leading sirolimus-eluting stent. The results were universally successful, documenting the equivalence and/or superiority of our stent design in both safety and efficacy variables.

Competition from local device manufacturers

Regulatory requirements to submit complete clinical trial and efficacy data, thus leading to longer time before new products hit the market

QUANTITATIVE ANALYSIS: FINANCIALS AND INVESTMENT METRICS Various ratios are used to help interpret and understand financial statements. Balance Sheet Analysis and Earnings per share projection

Balance Sheet Composition

100% 80% 60% 40% 20% 0% 15

Earnings per share (in SGD)

10.78 8.92 7.23 5.01 3.78 -0.14

EQUITY LIABILITIES ASSETS

10 5 0 -5

Earnings per share

Peer Comparison ROE Comparison DUPONT DECOMPOSITION FOR ROE 2009 BIOSENSORS Net Profit Margin (%) Total Asset Turnover Total liabilities / Total Equity RETURN ON EQUITY (ROE) -0.94% 0.5993 1.9096 -1.08% 2010 27.59% 0.5101 1.5745 22.16% 2011 27.73% 0.3276 1.2628 11.43%

BOSTON SCIENTIFIC Net Profit -13.01% Margin (%) Total Asset 0.3252 Turnover Total liabilities / 2.0467 Total Equity RETURN ON -8.66% EQUITY (ROE)

-13.13% 0.3528 1.9589 -9.07%

5.79% 0.3580 1.8753 3.88%

MEDTRONIC Net Profit Margin (%) Total Asset Turnover Total liabilities / Total Equity RETURN ON EQUITY (ROE)

14.18% 0.6189 1.7895 15.70%

19.59% 0.5631 1.9201 21.18%

19.43% 0.5237 1.9055 19.39%

Biosensors has a relatively low ROE as compared to Boston Scientific. The 25.00% 21.11% 19.39% low ROE, when decomposed using a 20.00% 15.70% DuPont analysis, can be attributed to 11.43% 15.00% the lower leverage of Biosensors, and 10.00% 3.88% also the lower asset turnover. 2.16% 5.00% Biosensors changes in ROE were 0.00% mainly affected by its increasing profit 2010 2011 -5.00% -1.08% 2009 margin. This suggests that Biosensors -10.00% -8.66% -9.07% has been able to seize significant -15.00% market share despite the fierce BIOSENSORS BOSTON SCIENTIFIC MEDTRONIC competition within the industry. ROE is also generally more stable than Medtronic, whose ROE varied greatly from year to year. Overall, judging from the growth in ROE, Biosensors is able to generate relatively high profitability with the equities invested. Asset Turnover Comparison

ROE COMPARISON

ASSET TURNOVER RATIO COMPARISON

0.7000 0.6000 0.5000 0.4000 0.3000 0.2000 0.1000 0.0000 2009 BIOSENSORS 2010 BOSTON SCIENTIFIC 2011 MEDTRONIC 0.3252 0.3528 0.3580 0.3276 0.5993 0.6189 0.5101 0.5631 0.5237

The turnovers for the companies are relatively moderate and have increased over the years with Biosensors as an exception. This, however, does not mean that Boston Scientific and Medtronic are more efficient in utilizing its assets in generating sales. Asset turnover ratio could also indicate pricing strategy: companies with high profit margins have low asset turnover and vice versa. Keeping this in mind, we can see that the profitability of Biosensors is more lucrative as compared to other competitors.

Enterprise Value to EBITDA Comparison

EV TO EBITDA COMPARISON
30 25 20 15 10 5 0 2009 BIOSENSORS Gearing Ratio 2010 BOSTON SCIENTIFIC 2011 MEDTRONIC 11.45 9.06 9.27 9.1 9.01 21.29 26.88

7.25

6.88

Biosensors is valued significantly higher than its competitor throughout the years it also experienced the highest growth in EV/EBITDA. Medtronics EV/EBITDA is the most consistent throughout the three years. High enterprise value also means that a company is less attractive to be a take-over candidate thus, Biosensors is relatively unattractive for any take-over discussions in near future. This represents the strength of the companys establishment in the market as one of the key players.

GEARING RATIO COMPARISON

60 50 40 30 20 10 0 2009 BIOSENSORS 2010 BOSTON SCIENTIFIC 2011 MEDTRONIC 9.08 20.18 45.19 48.11 48.11 48.14 48.14 37.53 37.53

Throughout the years, Biosensors has a decreasing debt-to-equity ratio and is always the lowest as compared to Boston Scientific and Medtronic. This indicates that Biosensors has not been aggressive in financing its growth with debt. As a result, Biosensors earnings are relatively more stable due to less interest expenses paid. With this in mind, Biosensors has the lowest risk of bankruptcy as compared to its peers.

Current Ratio

CURRENT RATIO COMPARISON

6.00 5.00 4.00 3.00 2.00 1.00 0.00 2009 BIOSENSORS 2010 BOSTON SCIENTIFIC 2011 MEDTRONIC 1.06 1.52 2.07 2.17 1.39 2.37 1.72 1.92 5.35

Biosensors current ratio rose significantly over time as compared to Boston Scientific and Medtronic, who have relatively stable current ratios. This means that among the three companies, Biosensors has the best ability to pay back its short-term liabilities. In addition, the firm is more efficient in terms of its operating cycle and its ability to turn its product into cash. Thus, the risk for Biosensors to default on its payment is relatively lower as compared to these two counterparts, making it the better choice to invest in.

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QUALITATIVE ANALYSIS: CORPORATE GOVERNANCE AND MANAGEMENT TEAM Good Corporate Governance For effective and independent oversight of the management, the Board Committees, mainly the Audit Committee, Nominations Committee and Compensation Committee, are chaired by independent non-executive directors where members are predominantly independent non-executive directors. The Groups board of directors currently consists of two executive directors and five non-executive directors of whom four are independent directors. The presence of the independent element on the Board facilitates the exercise of objective judgement on corporate affairs independently from the management, ensuring the best interest of the Group. The Nominations Committee reviews the independence of each director annually. The performance of individual directors is assessed on the basis of each directors contribution to the Company and the levels of participation in various Board Committees and attendance at Board meetings. In addition, the Company has in place a Whistle-Blowing Policy and Procedures giving employees and others an official channel to request for independent investigation with appropriate follow up action. Key Management The management team is led by Founder and Executive Chairman Yoh-Chie Lu, who is chairman since 1990 and CEO of the company till 2008. Alongside with internally promoted Co-CEOs Dr. Jack Wang Chicheng and Mr. Jeffrey B. Jump, Chief Technology Officer, primary architect of both the BioMatrix and BioFreedom DES systems Mr. John E. Shulze and newly appointed CFO Mr. Ronald H. Ede, majority of the management team have over thirty years of experience in the medical field and have been working in Biosensors for more than ten years. The recent restructure of the executive management team in 2011 has shown positive results with the Group attracting big institutional investors and acquiring strategic technologies to achieve its long-term objective of being Asias leading DES company. SUSTAINING GROWTH Future Plans Expanding the product portfolio Biosensors has developed a new strategy to move forward, from focusing primarily on DES technology and products, to increasing its product portfolio diversity, eventually becoming a first-class global medical device platform company. With the acquisition of Cardiomind in June 2010, they gained technological expertise in the treatment of smaller vessels, outside the treatment zone for its current DES products. Similarly, in October 2010 acquiring AXXESS DES systems from Devax Inc. has enhanced the Groups portfolio to include the specific treatment of bifurcation lesions. Pioneering next generation medical devices It is also in the process of developing next generation interventional care cardiology products, such as BioFreedom (its latest in stent technology), and continuing to provide complementary technology for specialty stents. Expanding in the China DES market As mentioned earlier, Biosensors has the critical advantage of being one of the new entrants in the DES market in China through its recent acquisition of JWMS. BioMatrix is currently awaiting approval from the Chinas State Food and Drug Administration (SFDA) to be marketed in China and is well positioned to take the lead in China and ensure sustainable growth. Penetrating the US DES market There are also plans to penetrate the US market, which is currently the largest DES market globally. With its acquisition of Devax Inc. AXXESS technology, Biosensors seeks to gain a foothold in the profitable US market. In 2010, Devax received the CE mark, for the AXXESS System, allowing Devax to sell this product in the European Union and other countries that recognise the CE mark.

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CONCLUDING WORDS Investing in Biosensors International is recommended because of its strong balance sheet and its continued strong performance in achieving revenue and profit goals. Investors can expect a stable return on their investment in the long term, as well as see the company expand into new markets and reap returns on Biosensors growth. With a sizeable portion of the DES and other specialty stent markets that are relatively untapped, there is significant industry growth potential, and Biosensors is in a strategically sound position to achieve success. It has expertise in the entire chain of process, from R&D to sales and marketing. This is a crucial factor in its success, as control over licensing and pricing contribute to overall sales and profits. Besides a good grasp of the entire chain of processes, Biosensors has in-depth knowledge of Asias and Europes regulatory and licensing processes, allowing it to obtain several key patents and approvals. The good track record of the company, coupled with management that are capable and driven to achieve results for Biosensors and investors, prove that Biosensors has the ability to carry out future growth plans. As of March 12, 2012, analysts have put a valuation of SGD1.90 on Biosensors, with the current trading price of SGD 1.40. This demonstrates analyst confidence in Biosensors to perform up to and beyond expectations, and deliver on its promised goals. In summary, investors looking to invest in the long term in a growing industry should have Biosensors on their radar and consider including Biosensors in their portfolio.

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References Biosensors International. (2011). Nurturing Dynamic Growth: Annual Report 2010/11. Retrieved March 10, 2012, from http://biosensors.listedcompany.com/misc/ar2010_11/ar2010_11.pdf Biosensors International. (2012). Milestones & Highlights. http://www.biosensors.com/intl/about-biosensors-milestones-highlights Retrieved March 10, 2012, from

Lim, J.S. (2012, January 6). Nomura Equity Research: Analyst Report on Biosensors International. Wong, T. C. (2011, October 11). OCBC Investment Research: Analyst Report on Biosensors International Group. Retrieved March 10, 2012, from http://www.ocbcresearch.com/pdf_reports/company/Biosensors-111017-OIR.pdf Biosensors International. (2010, October 21). Biosensors Acquires Bifurcation-stent Specialist Devax. Retrieved March 10, 2012, from http://biosensors.listedcompany.com/newsroom/20101021_080324_B20_A9BD3524B15773F9482577C200818DF0.1 .pdf News Medical.Net. (2010). Devaxs AXXESS Biolimus A9Eluting Coronory Bifurcation Stent System Receives CE Mark Approval. Retrieved March 10, 2012, from http://www.news-medical.net/news/20100729/Devaxs-AXXESSBiolimus-A9-Eluting-Coronary-Bifurcation-Stent-System-receives-CE-Mark-approval.aspx Business Insights (2011, March). The Drug-eluting Stent Outlook to 2016. Lemos PA, Serruys PW, Sousa JE. Drug-eluting stents: cost versus clinical benefit. Circulation 2003; 107:3003-07

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