$3.60 broker 9mth target - trading at 1.04c..., page-39

TDA, thank you for the Cochlear comparison. It is an interesting one, however there are 2 very important points needs to be kept in mind.

(1)Cochlear's growth curve is a slow but steady one (from $20.2m to $138m NPAT in 10 years). This would have been forecast 10 years ago. There is no real major outperformance over this time. Unilife is on a much greater growth curve which will only increase as new production lines are rolled out ie. here will be exponential growth for a few years.

(2)The Cochlear and Unilife markets are very different numerically. Cochlear controal circa 70% of the ear plant market and are now focused on growing that market through new products. Hence they have to spend more and more on R&D. How they will make earplants affordable to the impoverished masses who are born deaf is a big challenge. Cochlear's lowly P/E of 23 speaks volumes as to what the market believes its future growth prospects to be like.

Unilife on the other hand is at a high growth stage. The Forecast P/E ratio will have to reflect this soon. I do not expect anything as low as 37 which has been banded about. At least triple this would be appropriate for a company just beginning production in such a gargantuan untapped market(The current P/E is a lowly 15 which reflects a company which may not be successful at taking a prodcut to market). As the company matures, the p/e will naturally fall.

Let me throw one stat out there which was mentioned by Mr Shortall - There are 30billion injections given annually.
My expectation is that Unilife will be targeting 20% of this. This is the big picture. Unilife products should be synonimous with 'quality' and 'innovation'. Unilife products should be the number one choice for all types of syringe.