Unilife Reports Financial Results and Significant Milestones

Posted by Laura Swartz

November 24, 2010 at 10:26 AM

Unilife Corp. (UNIS-NASDAQ) has recently announced its financial results for the three months ended September 30, 2010, which marked the end of the Company’s first quarter of fiscal 2011. During the quarter, Unilife continued to advance the industrialization program for its Unifill™ glass-barreled, prefilled safety syringe. The Company intends to move into a new global headquarters and production facility during December 2010. As a result, supply of the Unifill™ Syringe to sanofi-aventis SA (SNY-NYSE) could begin in early 2011 (one year ahead of schedule), with high-volume manufacturing likely to be in place by the end of 2011.

Sanofi-aventis, thought to be the world’s largest purchaser of prefilled syringes, has been funding up to $38.5 million (pre-sales) for industrialization and exclusive right to buy the Unifill™ Syringe in therapeutic areas such as vaccines and antithrombotics. Unilife aims to establish further sales agreements with other pharmaceutical companies in areas not reserved for sanofi-aventis.

With regard to another of Unilife’s product lines, the Unitract™ 1mL line of plastic-barreled, clinical safety syringes, the Company commenced U.S. sales of these syringes last week. Unilife and Independent Medical Co-Op, Inc., a co-op of independent medical device distributors, entered into an agreement to introduce the Unitract™ 1mL syringes to healthcare facilities, with a focus on physician and long-term care.

Unilife reported first quarter fiscal 2011 revenues of $3.5 million versus $3.1 million for the same period in fiscal 2010. Net loss for the three months ended September 30, 2010, was $7.2 million, or ($0.14) per diluted share, versus a net loss of $2.1 million, or ($0.06) per diluted share, for the year-ago term. The increase in net loss was attributable to higher payroll and related expenses due to workforce increases, higher share-based compensation expense, and increased R&D expenses to finalize the product specifications of the Unifill™ syringe.

As of September 30, 2010, Unilife held cash, cash equivalents, and restricted cash of $16 million, which included $7 million of restricted cash used to secure a bridge financing for the new building. As well, in October 2010, the Company secured an $18 million mortgage from Metro Bank to support the new facility and the U.S. Department of Agriculture (USDA) agreed to guarantee $10 million of the loan.

For further information on Unilife Corp., please refer to our Research Library page.

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