A bit more info for the...

A bit more info for the team


http://www.pitchengine.com/unilife-corp-nasdaq-unis---first-qtr-2011-conference-call-summary/102393/


Construction of the new facility in York, Pennsylvania is nearly complete. The transfer and installation of the Unitract and Unifill automated assembly lines which will occur between late-December and early 2011. The building is as large as "three football fields."


Shortall stated "...we believe the building is going to send a very strong message to our pharmaceutical customers that we are a world-class business. And I believe the design of the facility strikes the right balance between operational efficiency and cost-effective construction."


The start of U.S. sales for Unitract 1mL syringes is "just a small taste of things to come".


Unilife's business focus is the pharmaceutical market for prefilled syringes. The Company is now in "active discussions with a number of pharmaceutical companies" around the world for Unifill syringes.


The sanofi-aventis agreement is running approximately "a year ahead of its original schedule." Payments received to-date from the Sanofi industrialization program amounts to around $22.5 million, approximately 95% of payments under the program.


During the fiscal first quarter UNIS received 510K FDA approval for Unitract 1mL Tuberculin syringe, which is a variation of the Unitract 1mL line of syringes. This is in addition to the Unitract 1mL insulin syringe, which received U.S. FDA approval earlier in the year.


Unilife has appointed Independent Medical Co-Op, Inc. (?IMCO?) as a preferred, non-exclusive partner for the sales of its Unitract syringes to U.S. healthcare facilities.



Richard Wieland, UNIS CFO and Executive VP covered the financial details:



Revenues of $3.5 million in first quarter of fiscal 2011 compared to $3.1 million for first quarter of fiscal 2010.


sanofi-aventis industrialization program revenues for the quarter decreased from $1.7 million to $1.4 million due to an acceleration of the quarterly payments that occurred during the fiscal year 2009. Initially, the industrialization program was scheduled to be completed in late-calendar year 2011. In recognition of the industrialization program being approximately one year ahead of schedule, sanofi-aventis agreed to accelerate its milestone payments.


Net loss for the 3-month period ended September 30, 2010 was $7.2 million, compared to $2.1 million for the 3-months ended September 30, 2009. The increase in net loss is primarily attributable to an increase in SG&A, the industrialization of the Unifill syringe, higher payroll due to increases in our workforce, and operating expenses associated with the construction of the new facility


On the balance sheet Property, Plant and Equipment increased approximately $6.1 million from year-end due to the continued work on the new facility.


Wieland stated "Notes payable increased 6.9 million from year-end in conjunction with our short-term loan with Univest, which was settled in October when the company completed its mortgage financing with Metro Bank."


Adjusted net loss for the quarter was $3.9 million, or $0.07 per diluted share, compared to an adjusted net loss of $700,000, or $0.02 per diluted share, for the same period last year.


UNIS secured a USDA guarantee for $10 million of the York facility mortgage, which provides a lower interest rate on the mortgage. The USDA program for these types of loans is part of a federal government program aimed at helping companies create jobs in the U.S. The mortgage and USDA guarantee is in addition to the $5.4 million in grants and loans from the Commonwealth of Pennsylvania, which the company had previously qualified for.