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Unilife Medical Solutions (UNIS) |
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WIKI ANALYSIS
Unilife Corporation is a U.S. based developer, manufacturer and supplier of advanced drug delivery systems with state-of-the-art facilities in Pennsylvania. Established in 2002, Unilife works with pharmaceutical and biotechnology companies seeking innovative devices for use with their parenteral drugs and vaccines. Unilife has developed a broad, differentiated proprietary portfolio of its own injectable drug delivery products, including the Unifill® and Unitract® product lines of safety syringes with automatic, operator controlled needle retraction. Unifill represents the world's first prefilled syringe technology integrating safety within the primary drug container. The products are ideally positioned to help pharmaceutical companies maximize the lifecycle of their injectable drugs and enhance patient care. Unifill syringes, together with other devices that are part of the Unilife technology platform, can either be supplied to pharmaceutical customers ready for use, or customized to address the specific requirements of targeted novel drugs. For more information on Unilife, please visit www.unilife.com.
New COO @ UNIS - Dr Ramin Mojdeh
Unilife's new Chief Operating Officer, Dr. Ramin Mojdeh, is wasting no time in adding value by instituting a series of operational efficiencies. Through a combination of operating expense reductions and the streamlining of capital spending programs, these efficiencies are expected to result in over $12 million in unilife savings in 2011. These effectuated changes will better allow Uniilife to focus its cash resources on the production and sale of the Unifill prefilled syringe, the Unitract 1mL syringe and the commercialization of other pipeline products. Dr. Mojdeh made an open market purchase of UNIS stock the first quarter of 2011.
Dr. Mojdeh stated in a press release,
“Having completed the key industrial milestone of initial Unifill syringe production well ahead of schedule, Unilife can implement a planned realignment of its business structure to better service the needs of pharmaceutical customers and deliver value to shareholders. In addition to strengthening our sales and marketing team and increasing our investments in R&D, we are streamlining other areas of our Company to improve cash flow and operational efficiencies. Unilife is uniquely positioned to service the acute needs of pharmaceutical companies that are seeking innovative, customized device solutions for their therapeutic drugs from a full-service partner that is agile, responsive and efficient in its business practices. By introducing these measures, we will accelerate our go-to-market strategy while strengthening our financial profile.”
Unilife has demonstrated themselves to be a company that under promises and over delivers – a quality that is well-embraced on Wall Street. The company has successfully completed all quarterly milestones under their industrialization program for their Unifill syringe since July 2008. This is evidenced by the fact that UNIS commenced initial production of the Unifill pre-filled syringe product a full nine months ahead of schedule.'
Sanofi Agreement
Sanofi is the world’s largest purchaser of prefilled syringes, and is one of the world leaders in the pharmaceutical industry, ranked number one in sales in Europe and number four worldwide. Backed by a world-class R&D organization, sanofi-aventis is developing leading positions in seven major therapeutic areas: cardiovascular, thrombosis, oncology, metabolic diseases, central nervous system, internal medicine and vaccines. Sanofi-aventis is listed in France (EURONEXT: SAN) and the US (NYSE: SNY).
Unilife and sanofi-aventis have entered into an exclusive five year agreement for the Unifill ready-to-fill syringe. Sanofi-aventis paid $40 million in total for the exclusive right to purchase the Unifill syringe for the therapeutic drug classes of antithrombotic agents and vaccines. The agreement runs through June 30, 2014, and two of sanofi’s therapeutic classes represent the majority of all prefilled syringes consumed globally. Sanofi-aventis also has exclusivity in an additional six smaller sub-groups that fall within other therapeutic classes that Unilife believes represent new market opportunities in the pharmaceutical use of prefilled syringes. Sanofi-aventis also has a ten year extension in June 2014. In the event that sanofi-aventis does not reach certain minimums, terms will be adjusted to the favor of Unilife. Currently sanofi manufactures roughly 700 million units per year, which is 40% of the therapeutic drug categories defined in the agreement. The current market overall is estimated at $1.5 billion and growing at a 15-20% annual rate. Unilife CEO Alan Shortall stated about the agreement, "The confined nature of the therapeutic sectors defined within the Exclusivity List considerably EXPANDS our commercial opportunities with additional pharmaceutical companies. In return, sanofi-aventis retains the opportunity to nominate the placement of additional therapeutic drugs onto the Exclusivity list, provided they are commercially favorable and do not infringe upon any future agreements we may sign with other pharmaceutical companies."
While the Company has not released per unit prices for the syringes in the contract, market prices are expected to be $0.80-0.85 per syringe. Just taking the two therapeutic classes at minimums of 20 million units each, the Company is looking at revenues of $16+ million for each of the two therapeutics. Unilife is building capacity at its new plant of 400 million units in 2014 and 1.0 billion units in 2016. Clearly Unilife is expecting to surpass the minimums in the sanofi contract.
Update on Manufacturing Plant in York, Pennsylvania
This 165,000 sf, state of the art facility is now complete, and the initial line has a 60,000 unit per year capacity.
Alan Shortall, Chief Executive Officer & Director - Joined Unilife at its inception and has served in his current capacities since September 2002. Shortall was named one of the top 100 Notable People in the medical device industry by Medical Device & Diagnostic Industry magazine in 2008.
Ramin Mojdeh Ph.D., MBA, Chief Operating Officer & Executive Vice President - Mojdeh assumed his current position with Unilife in 2011 after attaining more than 25 years of managerial experience in several industries, including 18 years in the medical device sector with Becton, Dickinson, GE Healthcare, and Guidant. He most recently served as the Vice President & General Manager of Becton, Dickinson Pharmaceutical Systems, North America. Richard Wieland, MBA, Executive Vice President & Chief Financial Officer. He joined Unilife in 2010 with 30 years of senior financial experience with public and private companies, including Cytochroma, Advanced Life Sciences, MediChem Life Sciences, and LyphoMed.
Wall Street Research
On March 10, 2010, Griffin Research issued a research report on Unilife with a $10.50 target price.
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