The original agreement was entered into on 15/01/2015. So 6 months from then would take us to approximately mid July 2015. In the earnings call on 9/11/2015 the Chairman and CEO advised:
"In regards to AbbVie, I am pleased to provide a following update. This quarter Unilife delivered to AbbVie customized electronic reusable auto-injectors based on the LISA device platform on schedule for use in human factor studies. Unilife will recognize $1.2 million in revenue in the second quarter of fiscal 2016 from AbbVie for completion of the LISA feasibility program, in addition to payments received for earlier achieved milestones under that program.
The exclusivity period for the LISA device platform granted by Unilife under the definitive global strategic agreement signed with AbbVie on January 15, 2015, commences with Unilife's completion of the deliverables under the feasibility program. The milestones tied to the exclusive period for the Unifill Finesse prefilled syringe have also been successfully completed. The parties are also working on agreements for other delivery systems, and the relationship between Unilife and AbbVie continues to be strong."
It would seem rather brazen, if not delinquent, for the company to continue to spruik the strength of the relationship, and the fact it has possibility grown to include other devices, if this was not truthful.
Now, I know people will provide colourful opinions on the subject of the Chairman and CEO's integrity and honesty. However, if it is true that he "stuffed up" the deal some time ago, it would be bordering on criminality to suggest negotiations are continuing if they were not. Furthermore, I am sure Abbvie would certainly correct any statements made by Unilife they considered not to be correct or factual.
My thoughts on why it wasn't signed in 6 months are that perhaps it is a complex multi-million dollar negotiation involving multi-year supply of devices exclusively for the treatment of auto-immune diseases and this requires longer than 6 months.
UNS Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
