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Biosensors' Q2 earnings fall 56% to US$4.9m
MEDICAL devices company Biosensors International reported a net profit of US$4.9 million for the three months ended Sept 30, 56 per cent lower than the US$11.3 million a year ago.
This was due to selling prices coming down across various regions for its key heart stent product. The company also cited an impact from reduced licensing revenue, and increased investment in clinical and registry trial expenses.
Overall revenue fell 10 per cent, from US$83 million to US$74.8 million, but cost of sales increased 9 per cent to US$20.9 million.
"The company experienced sustained softness in its overall business that was more severe than originally expected," new CEO Jose "Pepe" Calle Gordo told analysts at a call on Wednesday. "While we continue to think Biosensors has many strengths, we do acknowledge we need to improve our performance, focus on improving operational efficiency, and enhancing the effectiveness of our execution."
One main reason for the company's underperformance is that its China business remains weak, Mr Gordo said. This is due to prices coming down, weak sentiment and the anti-corruption campaign by the Chinese government, he added.
Biosensors has appointed a medical industry veteran to review its China strategy, Mr Gordo said.
The counter closed up a cent to S$0.635 before results were out.