Unifollower I agree with you that it is a big advantage for Pharmas that their product cannot be counterfeited because of UNS's unique product. However, I do not agree that more debt is good for UNS. UNS's stock has been held down for a long time because of its huge debt load and the ability of shorts to be able to instill fear in its shareholders that bankruptcy would result because of the debt, thereby creating consistent selling pressure on the stock price.
There are better ways of financing new contracts. I would suggest that they use alternative methods, some of which are:
Have FLEX do the production, if necessary transfer an existing line that is in production to FLEX and use that capacity to develop new products for new contracts. This may be necessary during the development phase of new drugs as FLEX will not and should not have that capability.
Lease the new production line instead of buying it. Some leases are treated as purchases for reporting purposes, so they need to ensure this is a clean lease because even though a lease does not require a debt commitment, certain leases are treated as a purchase if they have a bargain buyout amount and hence are treated as a purchase with debt.
I think that until UNS is cashflow positive it should not incur additional debt as that IMHO is the reason UNS is not at least 2X its current share price.
As usual just my 2 cents
