Here's the latest from Biosensors' link-up with Terumo

Terumo may have its own DES by 2016.

According to Nomura, Biosensors indicated that while licensing revenue from Japan declined in the last quarter due to increased competition, the group believes that licensing revenue should see a recovery as Terumo intensifies its marketing efforts.

Here's more from Nomura:

The key development in its relationship with Terumo is that Terumo will likely launch its own DES in Japan from 2016 when the current agreement with Terumo expires in April 2016.

To facilitate this transition, Terumo and Biosensors have agreed that Biosensors can become a distributor for Terumo in Japan for the Nobori stent. This will allow Biosensors to set up its own marketing infrastructure in Japan leading up to the expiry of the licensing agreement in 2016.

As a “distributor” for Terumo, Biosensors’ management believes that it will be able to access hospitals in Japan not currently served by Terumo. Terumo has also undertaken to help Biosensors secure approval in Japan for a stent of its choice, which we believe will be BioFreedom.

As for the licensing arrangement with Terumo for territories outside of Japan, Terumo will have to pay a minimum licensing fee based on the amount paid in the last financial year. This arrangement will last until 2014.

We believe this transition arrangement is a win-win for both Terumo and Biosensors in that Terumo will after 2016 be able to launch its own stents while Biosensors will be able to build a long-term presence in Japan for its DES business.

In addition to licensing its DES to Terumo, Biosensors currently already sells its bare metal stents in Japan through its own marketing infrastructure.