Good luck Dazz, better entry already for you. Keith is back:...

Good luck Dazz, better entry already for you. Keith is back:

	Column 1	Column 2
0	Unilife Corporation
1	Company Update : Medical Device
2	Business Prospects & Share Price Diverge
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5	Unilife shares sold off as the market moved sideways on Tuesday, with the stock’s price down 19.4% on the day. Yet, the Company executed on plan in the September quarter. Three new contracts are signed in the recent quarter, bringing the number of active deals (i.e., feasibility agreements, customization contracts, and commercial supply contracts) to 15. Of course, the most important of all is the 15-year sole-provider contract with Sanofi for wearable injectors. No similar deal is in place in the medical device industry. Near-term prospects remain favorable… Unilife performed in line with its general description of trends in its revenues and expenses in the first fiscal quarter (year ends June 30th). A small commercial shipment to Hikma was made, and R&D costs and cash utilization declined on a sequential basis. More important, the Company is looking for healthy revenue growth in fiscal 2015, though the quarterly figures will appear “lumpy” based on the timing and work on new customization agreements, as well as product shipments. We believe the progress will translate into a smaller per-share loss this fiscal year. …and the long-range outlook is bright. Unilife continues to make good progress in securing new deals as evidenced by agreements secured in the past few months, and the existing deals are still expected to support significant revenue gains begin in fiscal 2016. And based on historical conversion rates, we think a large proportion of the feasibility agreements will lead to commercial supply contracts. Meanwhile, the Company is readying the production capacity it needs to meet its existing obligations. We may learn more about the capacity build-out at the General Annual Meeting on Thursday. Finances appear sound. The Company closed the September quarter with $6.3 million of cash on hand and has since increased with $20 million coming from the OrbiMed loan facility, plus payments from customers since the quarter closed. Unilife should be in compliance with the covenants of the modified OrbiMed deal, which we believe reflected its lender’s favorable view of the long-range business prospects. We believe Tuesday’s selloff has created a buying opportunity. Indeed, we are maintaining our BUY rating and $13.50 price target.