UNS - Unilife Corporation

[Sean K]

Found a positive 'independent' report on this today.

9 Jan 12

Unilife up Double Digits from Insider and Institutional Buying, Analyst Recommendation (UNIS, BAX, TMO)

Analyst Report and Insider, Institution Buying has Unlife Soaring

Insider buying and a strong analyst report of higher sales has Unilife Corporation (NASDAQ: UNIS) up double digits for the week as major corporations in the medical equipment industry such as Baxter Corporation (NYSE: BAX) and Thermo Fisher Scientific (NYSE: TMO) are down.

Jeffries & Co. analyst Raj Denhoy began covering shares of Unilife recently with a "Buy" rating and a price target of $7 per share, stating that the company's Unifill device could appeal to many pharmaceutical companies because it could be used to extend the patent protection of some of their drugs. The share price of Unilife is now around $3.93. While Unlife Corporation is in development now, Denhoy projected $500 million in annual sales in fiscal 2016, and reach $670 million in fiscal 2017. Sales at Unilife Corporation are now around $5.24 million.

Buying from insiders and institutions is increasing. Chief Executive Officer Alan Shortall acquired 150,000 shares of this syringe and healthcare equipment manufacturer, paying $3.67 per share for a total amount of $549,988. Mr. Shortall increased his stake by 2.89% to 5,344,768 shares with this purchase. Institutions now own close to 20% of Unilife Corporation.

Now trading around $3.93 a share, the mean analyst target price for Unilife Corporation is $7.25 over the next year. The mean analyst rating for the company is very bullish at 1.70 (1 is the best and 5 is the worst). The gross margin is over 70% and earnings-per-share growth is expected to increase by more than 44% next year.

http://www.smallcapnetwork.com/Unil...X-TMO/s/via/3420/article/view/p/mid/1/id/535/

The purchase of $500K was in Sep 11 so old news.

Not sure where he gets the $5m sales figure from. The last financial statement had just $18K in 'product sales and other', of which we do not exactly know what 'other' is. The net loss was $9.7m.

Some extremely impressive projected sales figures there. $670m by 2017.

Jeffries and Co were the sole book build manager for the recent public offer.

Just having a quick run through their last quarterly report and I found this gem on page 19:

Our recurring losses and negative cash flows from operations raise substantial doubt about our ability to continue as a going concern. We anticipate incurring additional losses until such time that we can generate significant revenue from product sales

Fingers crossed they can sign some sales contracts this year.

 

[pacestick]

Much of this is based on Sanofi using the prefill to protect market share for lovenox and then sharing in the profits of market saved from generics when the patent ends this year . While sanofi would know how much they typically lose to generics when a drug goes off patent I do not know how the Jeffries report on which your original info is based comes to the conclusion that Sanofi will use the syringe for Lovenox although the amount of bleeding they will do to generics is such that they would want to come up with a strategy of some sort. On page 31 of the report they state
that they believe that conservatively Unilife will command just 20% of sanofis annual Lovenox volumes rising to 40% over the following three to five years

 

[Sean K]

Alan just keeps on buying. If it wasn't just a practical transfer of shareholders equity I'd be more impressed. Having said that, it's now his cash and he's choosing to buy more stock. I can't see any other motive other than he truly thinks he's got some contracts sewn up. He can't be just buying to shore up his % holding of the company to keep voting in his incentives surely.

Can only think they may be getting close to actually selling a syringe.

 

[Sean K]

Quarterly cash flow out today and they made $27K from 'receipts from customers'.

$4m in staff costs.



Don't they only have about 100 staff?

 

[Sean K]

Quarterly cash flow out today and they made $27K from 'receipts from customers'.

I'm not sure what's going on but the Half Yearly came out on 10 Feb and presents different info on 'sales' in the last half. This report says they made $17K in the last quarter. Net loss $12.8m.

'Sales' began in Jul 11.

 

[Sean K]

Just having a quick run through their last quarterly report and I found this gem on page 19:

Our recurring losses and negative cash flows from operations raise substantial doubt about our ability to continue as a going concern. We anticipate incurring additional losses until such time that we can generate significant revenue from product sales

2 months later and still no sales announced.

Alan has become a substantial shareholder though now holding 9% plus. Perhaps he's going to use this voting power to give himself another $10m bonus.

 

[Sean K]

3 months later and still no sales announced.

They sent out a shareholder briefing presentation today which was interesting.

Apparently they conducted some type of survey with health care providers to provide ratings for their devices. They all responded extremely well.

Unfortunately, there is no reference to this study. No indication of who conducted it. No numbers of participants. No indication of any other questions asked. Maybe this information is provided elsewhere.

It may seem that I am being totally negative regarding this company.

Well, I'm just reporting what they are reporting.

I'll be tuning into this:

Management has scheduled a conference call for 4:30 p.m. U.S. EDT on Thursday, April 26, 2012 (Friday, April 27, 2012 at 6:30 AM AEST), to review the Company’s financial results, market trends, and future outlook. The conference call will be broadcast over the Internet as a “live” listen only Webcast. To listen, please go to: http://ir.unilife.com/events.cfm.

Why am I following this company you may ask?

It's turned into a hobby.

Like watching the slow-mo train crash that is CTO.

 

[Sean K]

Quarterly financials out today and they are announcing some 'revenue'!

I am pleased to advise that the first GMP-compliant batch of our specialized device for targeted organ delivery is now ready to be shipped to a global pharmaceutical company for use in human clinical drug trials scheduled to occur later this year. To date, we have recognized revenue of approximately $800,000 for this program and expect to recognize the balance of this $1.4M initial stage in the next quarter. We further expect to generate additional revenues as this program continues to move forward.

It seems bazaar this world of drug and device trials. What I make of this is that UNS have sent a batch of stuff to some white lab coated people (who can not be named) for them to trial it and be paid up to $1.4m for it.

But what the hell does this mean?

Does revenue mean a 'sale'. What is the device that targets an organ? Why have you got revenue for this trial? For the drug, or for the device? What's the program?

 

[loogs]

Quarterly financials out today and they are announcing some 'revenue'!

It seems bazaar this world of drug and device trials. What I make of this is that UNS have sent a batch of stuff to some white lab coated people (who can not be named) for them to trial it and be paid up to $1.4m for it.

But what the hell does this mean?

Does revenue mean a 'sale'. What is the device that targets an organ? Why have you got revenue for this trial? For the drug, or for the device? What's the program?

Not much info out about the organ device. The company is paying UNS to develop the device. They have supplied some devices for the company to trail later this year. Have spent 600K already and a futher 800K this qtr. Could be 2-3 yrs before real prod and sales. The only thing they are getting revenue from is the 1ml syringe.

UNS has several devices in prod and development stages. The Unifill prefill syringe is in production and supply agreements should be signed between June and August with two companies. More may sign before the end of the year. Other products could see agreements signed by end of yr or early next yr. Others could be in production 2013-14. A long and slow process doing all the development and trials and then production lines and then validation of prod line before sales happen.

Good point to listen to the qtrly conference calls. Analysts ask questions.

 

[Sean K]

UNS shot up a little the past few days and earned a 'please explain'.

Explanation, 'we know nothing'.

Still, unusual action worth waiting to see what they produce.

 

[pacestick]

http://carpedmstocks.blogspot.com.au/2012/06/unis-shorts-expanding-waist-line-time.html


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Tuesday, June 12, 2012
$UNIS - Shorts Expanding Waist Line - Time for a Big Belly Squeeze
Short Interest was reported yesterday and not surprisingly, it was up again. Shorts added 300,000 to their position to just under 8.2 million shares. Even with the continued movement of shares being converted from the Australian Exchange and being moved to Nasdaq, this number is pretty staggering. If we breakdown the numbers, we'll find approximately 27 million shares trade on Nasdaq. This is taking out any options or warrants into the count. Of those shares we alread know that Institutions hold 18 million shares, effectively leaving 9 million shares in the float. In the last quarter, funds added just shy of 2.6 million shares to their portfolios. For arguments sake, lets assume that they only add 1 million shares to their registers this quarter. That would leave just 8 million shares in the float at the end of June. This assumes that every single retail investor is a liquid one and isn't holding long term. If we continue the assumption that shorters will continue to short the stock, then we are looking at a situation where more than 100% of the entire float in the US is now short. As it stands right now, the numbers and the stock price are starting to tilt in the longs favor. Below is a copy of the three month chart that illustrates how the shorts are losing their grip on the stock. Three months ago, the stock had a short position of 6.1 million shares. While they have added 2.1 million to the outstanding number of shorts, this has not prevented the stock from moving upwards. The stock only seems to take hits when volume is low and they have a greater influence on price. It would appear that is when funds step in and as volume rises so does the price. We have had back to back days of over 600,000 shares traded. This continued activity can only put the shorts on high alert and force them to consider whether or not to cover. At their currently level, and assuming volume continues to be strong, it could take short 20 days to purchase back their shares. Buying begats buying in these situations and the more that cover, the more that will want to cover, the more that others will want to buy. As the price rises there will be new shorts added at higher levels, but will they be able to withstand the ultra tight float?

 

[Sean K]

$UNIS - Shorts Expanding Waist Line - Time for a Big Belly Squeeze

If they ever stitch up an actual sales contract the shorters will be in big trouble.

'sales' were supposed to start Jul 11.

 

[pacestick]

press release

June 18, 2012, 11:49 a.m. EDT
Unilife Signs Long-Term Supply Contract for the Unifill Prefilled Syringe
--Unifill Chosen for Upcoming Launch of Generic Equivalent of Auto-Immune Therapy --7-Year Contract to Generate Annual Revenue of up to $15MM for Initial E.U. Geography --Exclusivity Fee for Initial E.U. Geography and Indication, Other Territories Reserved

YORK, Pa., June 18, 2012 /PRNewswire via COMTEX/ -- Unilife Corporation ("Unilife" or "Company") UNIS +5.43% (asx:UNS) today announced the signing of a seven-year commercial supply contract with a pharmaceutical company for the Unifill ® ready-to-fill (prefilled) syringe.

Target Drug and Market This supply contract for the Unifill syringe relates to the planned launch of a generic equivalent of an approved auto-immune therapy that is currently available in a standard prefilled syringe format for use across several indications.

The auto-immune therapeutic space includes disease states such as rheumatoid arthritis, psoriasis, psoriatic arthritis, lupus and Crohn's disease. The cumulative U.S. patient population affected by auto-immune diseases is greater than seven million people and approximately twice that worldwide. The drug has also been shown to be effective for the treatment of several cancers including breast, head and neck, leukemia, lymphoma, lung, osteosarcoma, bladder and trophoblastic neoplasms.

Currently, the majority of injections within the auto-immune therapeutic class are self-administered by patients using either a standard prefilled syringe or a conventional auto-injector. The release of the generic drug utilizing the Unifill syringe will mark the first time an auto-immune therapy is supplied in a prefilled syringe with safety features that can prevent needlestick injuries and encourage more convenient, safer disposal.

Exclusivity of Supply An exclusivity fee will be added onto the negotiated unit price of the Unifill syringe when agreed exclusivity conditions are met. Unilife will grant to the pharmaceutical customer an exclusivity of supply right for the Unifill syringe for a specific indication and Western European geography.

The Unifill syringe was selected by the pharmaceutical customer because of its capacity to differentiate its drug from brand name or generic competitors. The implementation next year of a legally binding E.U directive mandating the use of needlestick prevention products within European healthcare facilities also played a significant role in the selection of the Unifill syringe. Exclusive access to the Unifill syringe further strengthens the pharmaceutical customer's competitive strategy.

Other international geographies have also been reserved for exclusivity by the pharmaceutical customer, and will be added subject to the agreement of terms by both parties.

Projected Revenue Initial sales of the Unifill syringe to the pharmaceutical customer will commence in July 2012. Sales are expected to progressively increase in anticipation of the scheduled commercial launch of the pharmaceutical customer's drug within international geographies after regulatory approvals are granted during Fiscal Year 2013. Annual unit volumes for the Unifill syringe within the initial European geography are expected to reach up to 10 million units during the contract period, generating up to $15 million in revenue per year.

The unit volumes for the Unifill syringe can increase as other reserved international geographies are added by the pharmaceutical customer.

For commercial purposes and due to confidentiality clauses within agreements, additional terms of the contract and the identity of the pharmaceutical company are to remain confidential at this time.

Comments by Unilife CEO Alan Shortall Mr. Alan Shortall, CEO of Unilife, said, "Pharmaceutical companies are actively seeking access to innovative, differentiated devices for delivery of their brand name, generic and biosimilar drugs. The long-term supply contract that we have signed today underscores this growing trend and demonstrates how our proprietary portfolio of innovative device technologies can enable and enhance their commercial strategies for injectable drugs.

"Through the pairing of the Unifill syringe with their drug, this pharmaceutical customer can set a new benchmark for safety and functionality within this high-value therapeutic class, and turn compliance with needlestick prevention laws into a competitive market advantage. We look forward to building a strong relationship with this pharmaceutical customer to help them generate powerful differentiation and market demand for their drug.

"While full terms of this long-term contract cannot be fully disclosed for commercial purposes, I am pleased that it contains multiple revenue-generating components, including exclusivity fees, an attractive unit price and significant commercial upside moving forward as other reserved international territories are added."

"This is just one of many supply contracts that we expect to be generated for the Unifill syringe moving forward. We expect the Unifill syringe will be selected for a number of brand name and generic drugs targeted for use across a wide variety of therapeutic indications that are either approved and at various stages in their commercial lifecycle, or in clinical development. To best align ourselves with the commercial strategies of these pharmaceutical customers, and to drive shareholder value for Unilife, I expect these upcoming contracts will all vary in terms of size, scope and structure."

About Unilife Corporation Unilife Corporation is a U.S. based developer and commercial supplier of advanced drug delivery systems. Unilife collaborates with pharmaceutical and biotechnology companies seeking innovative, differentiated devices that can enable or enhance the delivery of injectable drugs and vaccines supplied in either a liquid stable or lyophilized form. The Unifill syringe, the world's first and only prefilled syringe with fully integrated safety features, sits at the leading edge of this diversified portfolio. In addition to prefilled and hypodermic safety syringes with automatic, user-controlled needle retraction, Unilife has other proprietary technology platforms including drug reconstitution delivery systems, auto-injectors, auto-infusion pump systems and specialized devices for targeted organ delivery. Unilife's global headquarters and state-of-the-art manufacturing facilities are located in York, PA. For more information on Unilife, please visit www.unilife.com

Forward-Looking Statements This press release contains forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. These forward-looking statements, including statements relating to anticipated sales and revenues pursuant to the supply agreement, expected future supply contracts for the Unifill syringe, and potential geographical exclusivity additions under the supply agreement, are based on management's beliefs and assumptions and on information currently available to our management. Our management believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the risk that projected sales under the supply agreement will not be achieved, the risk that delays in regulatory approvals or commercial launch, and those risks and uncertainties described in "Item 1A. Risk Factors" and elsewhere in our Annual Report on Form 10-K and those described from time to time in other reports which we file with the Securities and Exchange Commission.

General: UNIS-G

 

[Sean K]

press release

June 18, 2012, 11:49 a.m. EDT
Unilife Signs Long-Term Supply Contract for the Unifill Prefilled Syringe
--

Interesting.

5 days after the 'please explain' more interesting.

 

[pacestick]

volume up 5.5 times on nasdaq friday night price up three cents monday both on the asx and nasdaq could be interesting

 

[Sean K]

volume up 5.5 times on nasdaq friday night price up three cents monday both on the asx and nasdaq could be interesting

RSM, what do you make of that sales contract for 'up to' $15m over 7 years. While it looks like an actual 'sale' as opposed to drugs for trials, in the scheme of things they need to lock up some larger contracts than that don't they? They're burning $10m+ a quarter at the moment, so up to $15m over 7 years is a drop in the bucket. Maybe just a starting point for further contracts? Maybe it snowballs.

 

[pacestick]

well monday didn't continue the friday nasdaq performance However JP Morgan have more than doubled their holding to 4 million nasdaq shares

http://www.nasdaq.com/symbol/unis/institutional-holdings

Further sales contracts with at least two major pharmas are in the final stages of negotiations one is Sanofi the other is unknown Announcements are expected before September

 

[pacestick]

Could be needed for a new production line

Unilife Announces Pricing of Approximately $20 Million Offering of Common Stock


YORK, Pa., June 28, 2012 /PRNewswire/ -- Unilife Corporation ("Unilife" or "Company") (NASDAQ: UNIS; ASX: UNS) today announced the pricing of its underwritten offering of 6,154,000 shares of common stock at a price of $3.25 per share.

All of the shares in the offering are to be sold by Unilife.

The gross proceeds of the offering to the Company are expected to be $20,000,500 and net proceeds, after deducting the underwriting discount and estimated offering expenses, are expected to be approximately $18,800,475.

The Company expects to use the net proceeds from this offering to fund the continued development and supply of its diversified portfolio of advanced drug delivery systems, to purchase and operate capital equipment to expand production, and for working capital and other general corporate purposes.

The offering is expected to close on July 5, 2012 and is subject to customary closing conditions.

Jefferies & Company, Inc. and Leerink Swann LLC are acting as joint book-running managers for the offering.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Unilife, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release is being issued pursuant to and in accordance with Rule 134 of the Securities Act of 1933, as amended.

The offering will be conducted pursuant to an effective shelf registration statement, including a base prospectus, which is on file with the Securities and Exchange Commission ("SEC"). A final prospectus supplement related to the offering will be filed with the SEC. Copies of the final prospectus supplement and the base prospectus relating to the offering, when available, may be obtained by visiting EDGAR on the SEC's website at http://www.sec.gov. Alternatively, copies of the final prospectus supplement and base prospectus related to the offering, when available, may be obtained from Jefferies & Company, Inc., Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 12th floor, New York, NY 10022 or by telephone at 877-547-6340 or by email at Prospectus_Department@Jefferies.com or Leerink Swann LLC, Attention: Syndicate Prospectus Department, One Federal Street, 37th Floor, Boston, Massachusetts 02110, by telephone at 800-808-7525, or by facsimile at 617-918-4900.

About Unilife Corporation

Unilife Corporation (NASDAQ:UNIS / ASX: UNS) is a U.S. based developer and commercial supplier of advanced drug delivery systems. Unilife collaborates with pharmaceutical and biotechnology companies seeking innovative, differentiated devices that can enable or enhance the delivery of injectable drugs and vaccines supplied in either a liquid stable or lyophilized form. The Unifill syringe, the world's first and only prefilled syringe with fully integrated safety features, sits at the leading edge of this diversified portfolio. In addition to prefilled and hypodermic safety syringes with automatic, user-controlled needle retraction, Unilife has other proprietary technology platforms including drug reconstitution delivery systems, auto-injectors, auto-infusion pump systems and specialized devices for targeted organ delivery. Unilife's global headquarters and state-of-the-art manufacturing facilities are located in York, PA. For more information on Unilife, please visit www.unilife.com

Safe Harbor Statement

This press release contains forward-looking statements including without limitation, statements about the completion, timing, size and use of proceeds of our public offering. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to our management. Our management believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the satisfaction of customary closing conditions associated with the public offering, as well as those described in "Item 1A. Risk Factors" and elsewhere in our Annual Report on Form 10-K, in the final prospectus supplement and related prospectus relating to the offering and those described from time to time in other reports which we file with the Securities and Exchange Commission.

General: UNIS-G

Investor Contacts (US):


Analyst Enquiries


Investor Contacts (Australia)

Todd Fromer / Garth Russell


Lynn Pieper


Jeff Carter

KCSA Strategic Communications


Westwicke Partners


Unilife Corporation

P: + 1 212-682-6300


P: + 1 415-202-5678


P: + 61 2 8346 6500

SOURCE Unilife Corporation

 

[Sean K]

I didn't think it'd be long before this. Note the quote out of their annual I put in at the top of the screen. They are burning through millions a quarter and are not getting the contracts they need to pay the bills. They will have to keep going to market and diluting shareholder funds until they do. I note Jeffries is leading the placement. The same company that provided a glowing analysts report not long ago. See the same post on 11 Jan. Expect another one out shortly. This is still very high risk IMO.

 

[Sean K]

Why did all the Directors get given these shares a few days ago?

Direct 10,000 common shares (equivalent to 60,000 CDI’s as approved by shareholders); and Indirect 5,000 common shares (equivalent to 30,000 CDI’s as approved by shareholders)

In two years the company has at least halved in value.
In one year up and down between .80 and .55.
No meaningful sales contracts that were supposed to 'start' in Jul 11.
Gone to market again to dilute shareholder value further.
Losing about 10m a quarter.
Just about zero revenue.

It's only heading one way on this track record.

But they can keep paying the CEO millions and hand out these shares to Directors for failure.

Important note in their last major financial report:

We anticipate incurring additional losses until such time that we can generate significant revenue from product sales.

Still no meaningful sales.

I will eat my hat if this company does not go into administration in the next year.