The SA author was indirectly right about UNS needing to be...

The SA author was indirectly right about UNS needing to be restructured. Outside of the building mortgage Orbimed is the only creditor UNS has. They restructured the terms of the loan deferring interest payments for two years and are forgoing royalty payments on anything shipped to AMGN till commercial shipments commence. Additionally they are putting in place management changes to suit their needs. Essentially Orbimed is serving the role as a venture capitalist.

As for the convertible note that saves us from dilution and it puts AMGN in a creditors position ahead of anyone else. The note is secured with license rights to UNS's technology. Additionallly AMGN can have 20% of the products produced outside of UNS should UNS not meet production. AMGN's whole goal is to get biologic injection technologies to further their own sales. Additionally AMGN not diluting means Orbimeds warrants are worth that much more.

Orbimeds goal is to get UNS profitable so they can rake in BIG $$$ from the AMGN deal. The ideal on Orbi's part is to find items AMGN needs to buy and then get their fingers in to the pie. Orbimed and AMGN is a symbiotic relationship.

Outside of the management change the ramp is the most important thing. Remember that they have a manufacturing plant with around 180 employees being expensed under R&D. Once PFS shipments commence in commercial volume that expense will move out of R&D and will be recaptured through COGS. Even at 30MM units per year UNS's cash burn will be reduced significantly.

The Gross Profit Margin pays the SG&E, R&D, Interest and funds CAPEX.

The final point I am going to make is Orbimed is the only creditor UNS has. There is no logical reason Orbimed would force UNS into bankruptcy. Take a look at AMGN biologic pipeline:

http://www.amgenpipeline.com/pipeline/

Orbimed is going to walk away from that?

Then we add Sanofi, AstraZenneca/Medimmune, Novartis, AbbVie, and then add Depot and Occujet contracts.

Summary: PFS's are the driver to sustainability. WI's are the driver to profitability.