RTI are living of a $100m settlement with BD back in 2004. Their products are low margin at best IF they could sell them. The margins are so low in no small part to the 'go to market' costs i.e their customers are individual facilities. Basically, RTI are living on borrowed time. This is reflected in their market capitalization and is evidenced by their SEC filings (A net profit of -32% is nothing to be proud of, especially with a closed market going forward). Having a section on their wesbite titled 'market obstacles' is nothing but a whinge and an excuse for the failure of the company. In short, poor research when formulating their business model is their death knell.
As TDA has said, the prefill market is totally different. It is high margin, with very few competitors, in a growing market, and UNI have a unique product i.e the only safety prefill syringe in the existence.
I agree largely with the points about the 1ml. However, I believe with the contacts that UNI are making, they will be able to leverage some sales of these especially when they have a complete product range.
For those who don't believe in reratings of stock based on deals with large pharmas, have a look at the stem cell company Athersys (ATHX). Only this week their price rose by over 400% based on Pfizer agreeing to commericalize ATHX's stem cell treatment by providing $105m in milestone payments and receiving royalties on sales. Well I don't see Unilife dishing out any royalties, and the mind can spin when one imagines several large pharma offtake agreeements.
So brothers please!!! Lets put the RTI comparisons to bed and do our peer comparisons with more worthy companies. Wowwow time is near :):):)
UNI Price at posting:
90.0¢ Sentiment: Buy Disclosure: Held
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