unilife - still bullish after q2 2014 earnings, page-30

Hi Indi ,
Once again u pulling the cart before the horse and missing the point entirely :(

UNS is not a well established company like BD, that we can start getting caught up in the finer aspects of the business. I remember some bloke at briefing was annoying AL big time and a lot of the shareholders by asking questions such as yours, I don't suppose you were there!!. I reckon let's first get to the stage that we are actually selling some products/volumes and see what the margins bring and then you should fire away if still unsatisfied.

You shouldn't take for granted, that if the shift in the pharmacutical industry ( which AL identified )was not taking place, we would not be talking about UNS today, as they would be bankrupt , no institution would consider a debt funding scheme , no contracts would be signed as there would be no urgency from the pharma's as they would have no healthy competition and they will dictate terms when they see fit. It's simply that simple no need to get all technical at this stage.

I quote

We believe that the Top 10 will hold an even smaller share of the pharmaceutical market going forwards, and become even more fragmented than at present. One has to hypothesize that if the Top 10 didn’t manage to break the 50% market share threshold in the era of $bn blockbusters, they are unlikely to achieve this in the lower revenue era of the future.
The pharmaceutical industry has historically been highly conservative, and that default mode is not going to be an asset in the next few years – out of the box thinking and a willingness to discard many of the fondly held beliefs of the past will be the crucial asset

And that ladies and gents is where UNS steps in to the rescue , dictating terms to the pharma's!!signing long term contracts. It's a no brainer AL is a genius