Quite right, RedAce. This was specifically stated by Alan in the call, has been mentioned several times in this thread, and demonstrates both the level of commitment by Sanofi and the degree of forward planning that has gone into the Industrialisation Programme.
There were two critical strategic purposes in buying IBS. The first was to establish a corporate foothold in the US as a precursor to full re-domiciliation. The second, and by far more important, was to gain access to a ready-made appropriately qualified facility that could be used to develop a prototype production line to prove they could produce the 1ml safeey syringe to the quality and in the quantities required.
That first proof-of-concept production line was the blueprint for everything that followed - confidence in their technical expertise to then produce the Unifills, Sanofi's total commitment to the company and the technology, the ongoing transfer of technology between Sanofi and Unilife to ensure their respective production facilities operate seemlessly, and ulimately the choice of Mikron to build the fully automated production lines going forward.
This year was never about getting the 1ml into mass production. It was ALWAYS about achieving each and every milestone as specified in the IA, with the sole purpose of having Unifills rolling off the production line 1Q 2011 in order to meet Sanofi's stated longterm requirements, which I might add, were obviously built in to Sanofi's business planning for their vaccine/IV drug programme going forward.
As Alan said, the US$40 million SA committed to pay upon successful completion of the initial 1ml line is all the validation we need.
None of this is to say the 1ml isn't important. It is. But it is only one arrow in a quiver full of arrows that are being used to target multiple, highly visible, rapidly growing, and extremely profitable market share in the applicable sectors.
As an aside, with regard the bank facility currently under negotiation - I mentioned this in an earlier post, and Alan also mentioned it in the call, but there has been no discussion here about the Federal and State funding that also appears to be one the table as part of the funding package.
Don't know how much it will be, (and not that it's needed), but it will certainly be further validation of Unilife, management, their business plan and most importantly the technology.
Happy days.
UNS Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
