Getting Ready to Flex its Muscles

$UNIS - Is Unilife Getting Ready to Flex its Muscles

$UNIS - Unilife Corporation (Nasdaq:UNIS) announced on November 13th that they entered into a Global Strategic Alliance with Flextronics $FLEX (Nasdaq:FLEX). There was an immediate rush of good cheer in the price of the stock and then the inevitable short stomp. There seemed to be some confusion on the part of many as to why this deal is a good one for Unilife. Well the bottom line in the pharma world is risk. These companies are risking billions of dollars on developing new drugs and they need to know that their partners are going to be there every step of the way. Unilife has now de-risked their entire product portfolio to prospective customers by have a giant big brother standing behind them. They've eliminated a major what-if question out of the negotiating process and customers can be assured that their demands will be met for the foreseeable future. This alliance will only enhance Unilife's position and should make closing supply agreements easier in the future.

Posted 49 minutes ago by Stuart Fine