UNI - Unilife Medical Solutions

[LeeTV]

Australian Federal Court Approves the Convening of Scheme Meetings to Vote on Proposed Redomiciliation in the United States of America

The Directors of Unilife Medical Solutions Limited ("Unilife" or "the Company") (ASX: UNI / OTCPK: UNIFF) today announced that they have received approval from the Australian Federal Court to convene meetings of the Company's shareholders and optionholders (collectively Security Holders) to vote on the proposed redomiciliation of the Unilife Group in United States of America (Proposed Transaction) as announced to ASX on 1 September 2009. This is an important step in the Redomiciliation process.

 

[LeeTV]

Unilife move to NASDAQ(Video)

TRANSCRIPTION OF FINANCE NEWS NETWORK INTERVIEW WITH UNILIFE MEDICAL SOLUTIONS LIMITED (ASX:UNI) CEO, ALAN SHORTALL

Clive Tompkins: Hello Clive Tompkins reporting for the Finance News Network. Joining me for an update from Unilife Medical Solutions is CEO, Alan Shortall. Alan welcome back. For those in our audience not familiar with Unilife, can you briefly tell us what you do?

Alan Shortall: Yes, Unilife Medical Solutions is an Australian publicly listed company. We listed in November 2002 originally. We design, develop and manufacture innovative safety medical devices. In particular we have a patent protected portfolio of retractable syringes. Those retractable syringes have major functional and safety advantages over the current generation of safety syringes. In particular, we believe that they will become the product of choice and that is in a market sector where demand is actually being driven by legislation.

Clive Tompkins: And Alan, can you tell us about the features and advantages of your prefilled syringes?

Alan Shortall: Most of the current generation of safety or retractable syringes require an action to make them safe and that conscious action often doesn’t take place. The difference with our product is that actually when the injection stroke has been completed, the retraction is automatic. So there’s no action required on the part of the healthcare worker.
In fact there are two features that are common to each of our technologies - that is automatic and controlled retraction. So the retraction mechanism can be activated while the needle is still in the patient and then the healthcare worker actually controls the rate of retraction. Thereby it eliminates the risk of needlestick injuries.

Clive Tompkins: You’re now headquartered in Pennsylvania with an automated assembly line recently commissioned. Why Pennsylvania and when is the line due for completion?

Alan Shortall: Well, one of the difficulties with most technology companies is to try to make the transition from being a technology company to being an industrial producing company. The Unilife Medical Solutions Board made the decision about four years ago to look to acquire a company which had the operational skill sets to which we could implement our technology and then bring it to market.
We identified a company called Integrated BioSciences Inc (IBS )which was located in central Pennsylvania. Not only were they contract syringe manufacturers with FDA registered manufacturing facilities, but they had a twenty year history of designing and building automation assembly systems. So it was an ideal fit for us to be able to transition into being a manufacturing company. So we acquired Integrated Biosciences in late 2007 - so consequently central Pennsylvania has become our corporate headquarters now.
The automotive assembly line for our 1mL size insulin and safe syringe has been completed and is working successfully - that was completed in August of this year. Since August we have been producing product and placing it in quarantine ready for market release – should be released about the 18th of December. In the meantime, what we’ve been doing is rapid age testing which is part of the regulatory process requirement and that is normal with any new production line in a new clean room facility.

Clive Tompkins: So Alan, what is the capacity of the line and is it scalable?

Alan Shortall: Yes the line is scalable to a certain extent; its replicable would be the word I’d use. The current line has the capacity of 40 million units per annum and as the line grows, we’ll actually replicate that line. But in fact, as a company, we’re focusing all our operational resources on the industrialisation programme for our prefilled syringe technology.
We have an exclusive agreement with Sanofi-aventis which is the fourth largest pharmaceutical company in the world. Sanofi-aventis have paid us approximately $50 million for the five years exclusive rights to negotiate to purchase our prefilled syringes from us. So we are focusing all our operational resources on that program at the moment.

Clive Tompkins: The market for prefilled syringes is in the vicinity of $2 billion, how quickly will you be able to deliver product?

Alan Shortall: Well the industrialisation programme for bringing our Unifill prefilled syringes to the market started on the 1st July 2008. We announced at that time that the industrialisation programme would be completed at the end of 2011. On the 1st of July this year 2009, we updated the market once we had signed the industrialisation agreement with Sanofi-aventis and we were able to tell the market that we were actually one year ahead of schedule on the industrialisation programme.
It will now be completed at the end of 2010 at which time we will be able to produce 60 million units per year capacity on the first line, and that’ll be sterile product which will start to be supplied to our pharmaceutical partner very early in 2011.

Clive Tompkins: Alan can you tell us about the decision to award Mikron the contract for the prefilled syringe production line?

Alan Shortall: We had actually gone to an extensive programme of due diligence researching all automation suppliers locally. We started with about thirty, narrowed it right down to about five - we did site visits to all five. One of the key criteria we wanted from any supplier of the automation systems was they had experience in handling needles which are very specialised. Glass barrels - which prefilled syringes are made of glass barrels - it’s very specialised and also to have provided assembly systems for similar devices. Mikron met all the requirements from that perspective.

Clive Tompkins: And Alan you recently filed patents for a new prefilled product called Unifill Select, what’s the opportunity for this product?

Alan Shortall: Well a lot of vaccines, and particularly vaccines that are prefilled, use interchangeable needles, because it’s important to be able to vary the length of the needle according to the size of the patient. Currently again, there is no safety prefilled range that’s suitable for vaccines with interchangeable needles. So we’ve actually developed a whole new technology which is biocompatible, which will fit into pharmaceutical companies’ standard filling systems and is suitable for vaccines with interchangeable needles. It opens up a whole new market opportunity for us.

Clive Tompkins: Now that you have plans to list on NASDAQ, you’ve lodged an Information Memorandum with ASIC as part of the process, when is listing on NASDAQ likely to occur and at what price?

Alan Shortall: We believe that we will have completed the Redomiciliation and be listed on NASDAQ by the end of the first two weeks in February. The Information Memorandum will be posted out to our shareholders early in December. We have scheduled an Extraordinary General Meeting for our shareholders to vote on the Redomiciliation for the 8th of January. So we are very far down the process.
In relation to the share price, I don’t think there’ll be any immediate change. In fact from our shareholders perspective, they won’t notice much difference but at least they will have a choice. They can actually have NASDAQ listed shares to trade on NASDAQ if they wish, or they can have what’s known here in Australia as CDI’s or Chess Depository Interest, which to all intents and purposes will trade on the ASX just like our shares do now on a one to one basis.
But I think medium to long term; the U.S.A is the largest medical device market in the world. It’s also the largest capital market and we have our operations in the U.S.A. I think the demand for stock is going to be driven by the U.S.A going forward and also the average P/E ratio for companies in our sector on the ASX is 17:1 and then NASDAQ is 30:1. So I think it’s a smart move for us and I think it’s going to help to increase shareholder value as we go forward.

Clive Tompkins: Alan Shortall, thanks again for the update.

Alan Shortall: You’re welcome, thank you.

 

[UBIQUITOUS]

LeeTV, I see that you are trying to get the word out about Unilife by posting latest articles on here. However I think that you will not make any progress on this front.

Quite simply, when this stock is on Nasdaq from February, this thread will be revisited and thought of as "the one that got away". So to future readers, here are my calcs:

The announcement a couple of days ago that construction had begun on a 1billion syring pa facility really should be seen as spoonfeeding the market.

1billion pa = $750mUSD gross = $200mUSD net
300m shares = EPS $0.67USD per share x Nasdaq PE of 35 = A share price of $23.50 USD

The current sp is 88cent, and even discounting back $23.50 from when the facility is producing this (6years?), would mean that the current share price would have to be fair value at around $5AUD

 

[Mink178]

Hi, I am a small time investor having some UNILIFE shares. Does anyone know if it is better to acquire the UNILIFE Corporation shares in order to trade with the NASDAQ or to stick with the ASX CDI's? The 6:1 transfer ratio seems like we will be losing out in overall value.
Will the equivelent Nasdaq share give the same rise and fall of the ASX CDI? Can anyone help answer my lay questions please?

 

[bilo83]

Hi, I am a small time investor having some UNILIFE shares. Does anyone know if it is better to acquire the UNILIFE Corporation shares in order to trade with the NASDAQ or to stick with the ASX CDI's? The 6:1 transfer ratio seems like we will be losing out in overall value.
Will the equivelent Nasdaq share give the same rise and fall of the ASX CDI? Can anyone help answer my lay questions please?

Hi Mink,

It shouldn't make a difference in theory whether you take NASDAQ shares or CDIs. If there is a NASDAQ premium to ASX then the arbitrageurs would come in and trade away most or all of the difference. I think there may also be a facility where you can convert your CDIs.

I've also recently became an investor in UNI, having seen a presentation from Alan Shortfall. Seems like a great growth opportunity, but I am just wondering why there is such a large gap between the Griffin valuation and the market price. Is anyone concerned by either threat of competing products or sanofi not distributing unifil in large enough volumes?

 

[pacestick]

bilo 83
There is no competition for the unifill and the unifill select syringe available at the present time. It may be that r and D departments are working overtime at some of the big boys to develop one however even with the adavantage of being established companies with knowledge of how to obtain patents and fda etc approvals I can not see how they will come up with a response in under five years provided they come up with one at all. In the meantime government regulation in the USA and soon to be enacted in the european community requires that purchers of rtf syringes use the best technology available which is unifil and unifill select
The 1 ml syringe on the other hand has a number of competitors I believe that some will be sold but margins will be affected by the competition as buyers try to hold their costs down by shopping around .
The inability of the asx to price the sp near the analysts report value is probably related to a number of issues 1. the company has a checkered history with the false start at st marys .
2. The ceo has a checkered history with speeding tickets messy separations from his ex involving the dumping of shares by her ( was it shakespare who wrote heaven has no fury like a women scorned)
3. The asx does not really seem to have the sophistication to value technological stocks .

These three facts seem to conspire to hold the price down exposure to the larger and more sophisticated nasdaq should see this position correct The analysts have all taken the price at the time of the report and trebled it this is because the nasdaq values pharma companies at theee times that which the asx does . I personally am of the belief that this is conservative the asx gave zero value to the unifil select announcement and precious little to the factory yet they both have significant implications for future income and profitability I am hoping for an increase of more like 450 to 500 percent over the twelve months following listing not unfortunatly on the first day. However I could be wrong and the nasdaq could yawn and have little or a negative effect

 

[LeeTV]

LeeTV, I see that you are trying to get the word out about Unilife by posting latest articles on here. However I think that you will not make any progress on this front.

Quite simply, when this stock is on Nasdaq from February, this thread will be revisited and thought of as "the one that got away". So to future readers, here are my calcs:

The announcement a couple of days ago that construction had begun on a 1billion syring pa facility really should be seen as spoonfeeding the market.

1billion pa = $750mUSD gross = $200mUSD net
300m shares = EPS $0.67USD per share x Nasdaq PE of 35 = A share price of $23.50 USD

The current sp is 88cent, and even discounting back $23.50 from when the facility is producing this (6years?), would mean that the current share price would have to be fair value at around $5AUD

UBIQUITOUS this one hasn't got away as yet and at the current sp is nothing short of a bargain. I got in at 34.5c in July of this year and took up the the full spp at 85c(75% of which we got) so am happily sitting on quite a large parcel. The sp has dropped back a bit of late and is now sitting poised for a run imo. Thanks for your view on calculations, I have a similar view and have invested quite heavily in Unilife for the long term.

Hope everyone had a merry xmas. I just got back from a 10 day stint in Bali so no beers tonight as I drank about 100 large Bintangs at the very least while I was there :

 

[UBIQUITOUS]

UBIQUITOUS this one hasn't got away as yet and at the current sp is nothing short of a bargain. I got in at 34.5c in July of this year and took up the the full spp at 85c(75% of which we got) so am happily sitting on quite a large parcel. The sp has dropped back a bit of late and is now sitting poised for a run imo. Thanks for your view on calculations, I have a similar view and have invested quite heavily in Unilife for the long term.

Hope everyone had a merry xmas. I just got back from a 10 day stint in Bali so no beers tonight as I drank about 100 large Bintangs at the very least while I was there :

Lee I am looking forward to the mammoth announcements coming over the next few months.

Pacestick, I agree that Unilife will be rerated from here, but would only be guessing by how much. 3 fold over the next 12 months would be a disappointment to me.

 

[Lachlan6]

I certainly agree with the sentiments in this thread. Furthermore, UNI is shaping up very nicely in the charts. A clear three wave correction is tracing out from October and this is clearly counter trend. I have got an order in the market to buy this with a break up through $1.01. UNI is looking impressive.

 

[prozac]

Gee I was in this stock before the name change. There were so many syringe makers around with new designs I thought I would cash it in. That's a sure signal for the stock to improve and it has. Lol.
Hope it keeps going well for all holders.

 

[LeeTV]

CCZ Equities Research Report

Unilife: Ticking more boxes as it moves toward production and profitability

04 January 2010

 

[pacestick]

ccz now value this company at $3.50 per share it is trading at 0.90 cents . We know that it is expected to rise by about three times when it lists on the nasdaq being the difference between valuations that the asx and nasdaq give pharmas therefore will it be that in twelve months timme the sp will have adjusted for the difference between the ccz valuation and todays price plus moved up by three times that which ccz gives it i.e. $10.50 cdi
nice thought but i dont know how realistice all i can be sure of is its about to go up again and probably fast and soon

 

[UBIQUITOUS]

ccz now value this company at $3.50 per share it is trading at 0.90 cents . We know that it is expected to rise by about three times when it lists on the nasdaq being the difference between valuations that the asx and nasdaq give pharmas therefore will it be that in twelve months timme the sp will have adjusted for the difference between the ccz valuation and todays price plus moved up by three times that which ccz gives it i.e. $10.50 cdi
nice thought but i dont know how realistice all i can be sure of is its about to go up again and probably fast and soon

Pace there are rumours that the share price is being kept down as this week the CEO renumeration package gets votes on. This will include milestone share issues to the CEO dependent on the share price. Now if the share price got away then in all likelyhood shareholders would want those targets moved higher. I know it a consiparcy theory but it makes sense as there is no real selling just scaring by placing huge sell order just out of reach of temptation for buyers. Time will tell.

 

[condog]

LeeTV, I see that you are trying to get the word out about Unilife by posting latest articles on here. However I think that you will not make any progress on this front.

Quite simply, when this stock is on Nasdaq from February, this thread will be revisited and thought of as "the one that got away". So to future readers, here are my calcs:

The announcement a couple of days ago that construction had begun on a 1billion syring pa facility really should be seen as spoonfeeding the market.

1billion pa = $750mUSD gross = $200mUSD net
300m shares = EPS $0.67USD per share x Nasdaq PE of 35 = A share price of $23.50 USD

The current sp is 88cent, and even discounting back $23.50 from when the facility is producing this (6years?), would mean that the current share price would have to be fair value at around $5AUD

I think you guys would seem to be correct that there is upside and its likely to be soon and significnat, simply because its listing on the Nasdaq and certain funds will be required by there prospectus to start buying....then theres the usual biotech / pharma price differential between US and Au...

Not of your numbers ...but heres mine

CEO says current market for these syringes is $1.5 B p.a. rising conservatively by 15% p.a.

He says they hope to have sales of 850,000,000 syringes in 2016 which makes up 40%.....of the global market ....

Rough estimate given expansion necesary and marketing say 50% payout ratio at US rate of 4% = market cap of approx $2.2B = SP of approx $10 US in late 2014......or mid 2015 if there firgures and projections can be trusted... build in some margin and aim for $7 US by end of 2014....

I think $23 is maybe possible but very unlikely


If Aventis manage to keep or build market share , this is still an immense
40% of $1.5B inc at 15% p.a = approx 2014 $180M profit at say 30% ROFE
or $120M profit at 20% ROFE ......current market cap is say < $270M

I know its rough and crude but gives the best estimate I can come up with the limited info available....please if you feel you have a better estimate do provide calcs and working....

In any case upside looks very good for a number of reasons...

thats my very rough, very conservative forcast.... PS - disc I do not own, but am considering buying...at time of writing.... do own research, seek expert advice, do own calcs, do not make decisions on this...this information is merely for discussion purposes....

 

[UBIQUITOUS]

Breakout occuring???

Possibly on the back of the $3.50+ valuation. Well it is a welcome sight indeed.

 

[fullboost]

Federal Court of Australia - Sydney Registry
Listing was posted on Wednesday, 13 January 2010 @ 4:11:36 PM


Information:



FEDERAL COURT OF AUSTRALIA

New South Wales Registry

Thursday, 14 January 2010

Level 17
Law Courts Building
Queen's Square
SYDNEY, 2000

DUTY JUDGE - Enquiries about Duty Judge and Corporations Judge applications should be directed to the Associate to the relevant Judge in business hours:

DUTY JUDGE: Associate to Justice Stone, on 02 9230 8404

After hours urgent application enquiries should be directed to the Law Courts Security Desk on 02 9230 8025



Justice Stone Court Room 18A

10:15 AM Part Heard

1 (P)NSD1250/2009 IOR GROUP LTD

2:15 PM Part Heard

2 (P)NSD1332/2009 UNILIFE MEDICAL SOLUTIONS LIMITED

 

[Mink178]

As a small time investor and being new to all of this I am concerned about what will happen to the Unilife shares changing over to CDI's in the coming days. Does anyone have an opinion about wheather the suspension of trading and change over to CDI's will affect the unilife ASX price in a positive or negative manner?

 

[UBIQUITOUS]

http://www.unilife.com/index.php?option=com_content&task=view&id=589&Itemid=76


Awesome news. With UNI shares going into suspension at some point today, I wonder how much buying, and just as importantly selling, will occur.

Once CDI can be traded on a non settlement basis on Monday, for 2 weeks, I wonder how much churning (manipulation) can occur.

 

[UBIQUITOUS]

All I can say is.....GO GO GO Unilife. Your destiny on NASDAQ awaits. Up 13% at time of writing. It should be a very interesting close.

 

[UMike]

As a small time investor and being new to all of this I am concerned about what will happen to the Unilife shares changing over to CDI's in the coming days. Does anyone have an opinion about wheather the suspension of trading and change over to CDI's will affect the unilife ASX price in a positive or negative manner?

So am I.
If in doubt then take your profits/loss and sleep easy.

Out @$1.05.

Will keep watching this though.