Sent an email to Alan who responded as follows.Alan,Good...

Sent an email to Alan who responded as follows.

Alan,
Good morning, a couple of questions I hope you can answer.
1) With these new products being met for new customers is this going to delay having a new production line for the unifill syringes, which I believe is to be installed by end of calender year 2012.Answer No we have structured the business to run numerous projects in parallel, we are still on track to have the new high volume line in our facility by the end of the 2012 calender year.
2) From the AGM “The attractive model with long term contracts and strong margins” is that what you hope to happen or what is happening.Answer We are very much on track with our business model with long term contracts and strong margins, we expect to see the long-term supply contracts in place about mid 2012.
3) Discussion with multiple customers across multiple areas. Can you not define that at all.Answer Our Pharma customers are all highly protective of their confidentiality, the quickest way for us to burn a customer is to disclose any information about them. Also by releasing any information to the market of Pharma’s that we are negotiating with or with whom we expect to complete commercial supply agreements, gives them a stronger position at the negotiating table because they know that we would be under pressure to fulfill expectations that we have built. Also it would give our competitors an opportunity to try to sabotage the deal before we completed it.
4) With the business strategy now in place can we see any significant revenues in calender 2012.Answer There are videos on our website in which I speak of this, we expect that sales of the Unifill will pick up in the second half of 2012, as our Pharma customers start to build inventory, so that they can fill them, package them and have them ready for market release upon receiving regulatory approval, expected in the first half of 2013.
5) The 1ml is being sold and produced in what sort of numbers, is demand strong enough to have machines running 24/7.Answer The 1ml is being sold but we have not applied any resources to try and push the demand, I am happy with the response that we have received with it but it is never going to be any kind of a significant financial contributor to our business. It has done exactly what was needed of it and that was to generate a “WOW” response in the market to it’s 2 core features, Automatic and controlled retraction. That is what brought Sanofi to us but we are now a Drug Delivery Systems company and that is where the big financial opportunity is. IF we sell 30 million Unitracts in a year @ $0.33 each with a 33% gross margin, we will make $3 million, whereas I we sell 30 million Unifill’s in a year we will make a gross margin of $10 million and have no go to market costs and we will have long term contracts in place that guarantees demand for years to come. We are only running single shifts in production for the Unitract at the moment and as demand builds, we will increase it. If the demand does not build significantly it will have no impact to our financial viability whatsoever. Also the Unitract is sold into the general clinical market, so we have to take on the incumbent syringe companies like BD, whom have long term supply contracts in place and will fight tooth and nail to protect their bread and butter. With our agreement with Sanofi we have our foot firmly placed on 40% of the prefilled market, which is the most valuable market.

Alan Shortall
CEO