ramblings of a mad ramper

Dear All

I attended this mornings briefing in Sydney with RWE64, who passes on his regards to you all.

Well, how can I put what an amazing experience this morning was into words. Had a chat to Steve Alan and Alan Shortall (and I can confirm they are not related!) also met the original inventors. What amazing guys, very impressive, they certainly know their stuff, very busy with investor seminars and discussions with major pharmas, my favourite line?.. ?they are now coming to us!?

The new RTF project director was present and gave a short presentation. He is ex BD and explained how BD had tried and failed to design and product something like the Unifill. He described what Unilife had achieved over the past 8 years as being in lightning speed and that it takes BD anywhere between 7 and 10 years to design and develop a single medical device. Truly remarkable to hear this guy talk about the quality of the uni products with such a rich history of experience, knowledge and know-how.

From my notes;

 Headcount has increased by 70 over previous forecasts over the past year
 100k sq/mtr annex will cost $8 to 10m, scheduled for 2014 and will increase production capacity to 1 billion expected by 2016
 Mikron production line generating 150m units pa will cost +$20m
 SA currently using 750m pre filled syringes each year, heading to 1b. SA represent 40% of the global market and our foot is firmly in the SA door.
 Minor achievements this year including redomiciliation, complying with asx//federal court/sec requirements, and the new shed and offices
 90% of syringes used in the US are ?safety? however needle stick injuries are not decreasing
 Quality audit has been conducted by SA twice and also by two other major pharmas
 All staff will be in the new facility next week
 The RTF program funded by SA represents a 7 year project condensed into 2 years; final milestone payment from SA will be paid on 30 March 2011 when the product comes off the mikron production line (producing at 65 parts per minute)
 Next order will be for a 150m unit pa production line
 RTF pricing will be up to $1.40 per unit which is in line with competition (if you could call them that)
 Currently 150 drugs in the R&D pipeline that could be used in the RTF; there are 5 blockbuster drugs coming of patent, they current generate $26b each year in revenue and will fall by 70% after the patent expires
 Currently in discussion with 2 major pharmas about sharing income preserved by RTF once they come off patent
 2 major pharmas having inspected the new facility (and its not even finished yet!)
 AS has been talking to pharmas in the Middle East, Switzerland and Paris this year
 2 year aging of product will commence next year however SA will be filling their inventories through 2011 and 2012. given the lead times major long term orders will be made by SA and other major pharmas
 Video shown of a health care worker was quite a blast, I lost count of the number of times he said ?WOW?
 When asked about the share price, AS noted that the volumes being turned over were positive, confirming that there is lots of interest. He noted that he was the largest shareholder and was acutely aware of dilution issues.
 Talking to financial institutions regarding debt finance for CAPEX

Sorry for the disjointed post, these are just from my notes. And in closing, my favourite comment from AS, ?collaboration fees will be coming through soon? and whilst the timing of the Griffin share price forecasts of $3 to $3.50 were an early call, they are a vast underestimate.