Overdone, page-2

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sirsmiggles

650 Posts.

12/11/14

10:54

Post #: 14275115
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Originally posted by TDA ↑

It seems that the market has taken to Unilife heavily due to some comments made by Ramin during the EC, especially the 2018/20 break even point. I personally believe this to be overdone to the downside and taken out of context to a certain point.

Alan has mentioned previously that the company could be profitable with just the deals done to date, this statement did not include the Sanofi deal done recently for their large volume delivery needs. So really if we stopped re-investing any capital we will get from syringe sales we would/could be profitable by 2016, not just break even! But that is not the model the company is setting up, expansion will continue and re-investment for growth will continue. At these points we could be looking at $billions per annum in earnings, not just 100's of $millions if we rest on the agreements done to date alone, excluding Sanofi wearables.

Also the Hikma and Sanofi Unifill requirements were always going to happen over a certain period of time, this is well documented by company comments previously too, investors know that the larger lines aren't even installed as yet also.

I really do think that when everything is put into context and people think about what the company has always said it is aiming to achieve that we see this is still the case. The only difference is that we have seen a new agreement that could on its own earn around $1bln per annum and we have plenty more of it to come. As for capital raise concerns for fiscal 2015 I don't think this is the case, they stated they have around $30m in the bank and expact another $30m in payments in fiscal 2015, this does not include any upfront payments that may come with new agreements being signed.

I also see that Unilife gets a mention in the AFR today on page 24, Local Drug Companies Advance by Collaborating with Giants, it talks of the Sanofi deal.

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True TDA , nice post.
I am shitting myself in fear that a short article is going to take full advantage this flat CC we just had in the next 48 hours.

UNS would be looking good now if we weren't on the stuffing nasdaq

UNS Price at posting: 56.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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