Although some have chosen to interpret the contract as saying by Sanofi that they will not take any unifill at all I believe that this is incorrect. Sanofi have agreed to pay out 15 million if certain conditions are met. As the first payment is due in mid November the first condition must have been met or is very close to being met.
Sanofi are unlikely to pay anything at all if they expect to get nothing back.
What then are we to make of the wording of the contract. I would see it as a protection for sanofi if Lovenox sales drop below the level at which Sanofi consider them uneconomic Sanofi can can cancel the contract and withdraw from the Lovenox market. Sanofi would have estimates of how badly generic competition can hurt a drug. Is that 150 million I dont know but its worth thinking about The trade off for Unilife is the length of time of the contract which apparently are normally only for two years
UNS Price at posting:
59.5¢ Sentiment: LT Buy Disclosure: Held
