Found this on a chat site.Could BDX move sooner rather than...

Found this on a chat site.
Could BDX move sooner rather than later, and interesting the take on why Sanofi not interested in producing syringes(taking over Unilife).

" I believe now is the best time for BDX to purchase UNIS. UNIS has terrific technology that has been proven and accepted by the largest user of prefilled syringes- Sanofi.

UNIS has the most value to BDX before UNIS begins entering into contracts with other companies, which could limit how BDX would utilize the Unifill platform.

BDX can afford to purchase UNIS. Assuming a 100% premium on a takeover, that ~$600 million price represents only about 3% of BDX market cap. So, BDX can accept minor dilution in exchange for great long term growth and a new technology that positions them perfectly for the continued growth of pre filled syringes.

I believe there is a high probability that BDX buys UNIS in coming months.


I've read parts of the Sanofi Right of Refusal. I don't think it will stop BDX from buying UNIS. What it does is give Sanofi some rights that will require an interested buyer to sit down with Sanofi and work through the right of refusal, and also ensure a supply agreement between the new buyer and Sanofi on terms acceptable to Sanofi. It gives Sanofi leverage to negotiate- I think that was the intent of the agreement. I don't believe it was put in place because Sanofi wants to enter into the business of manufacturing syringes. They just didn't want to fund the riskiest part of the development (2-4 years ago) and then have someone come in and buy it away from them once proven (now).

Sanofi isn't in the business of manufacturing syringes. And, I doubt they want to be in that business. In my view, all the right of refusal gives them is a seat at the table with whoever would want to buy UNIS. Sanofi would probably rather have BDX own Unilife anyway and just negotiate a deal to buy the Unifill from BDX. Sanofi would also prefer BDX owning UNIS because they have a larger balance sheet and more resources.

I'm sure BDX sells a good amount of product to Sanofi now. If BDX were interested in buying UNIS, they would likely talk with BDX in advance and work out a deal prior to making an offer to buy UNIS. All three parties (UNIS, BDX, Sanofi) would have to work out the right of right refusal prior to making a deal final.

BDX is a medical supply company. They received a patent on the first syringe in 1925. The Unifill is the biggest innovation to come to syringes since then and, I believe, BDX, will want to maintain their leading position in this market. The Unifill platform will allow BDX to protect their market position and also use the product with their existing distribution capabilities and ramp up revenues far faster than UNIS will be able to on its own.

If BDX doesn't buy UNIS, then they run the risk of a company like Covidien buying UNIS. It that scenario, BDX market share in syringes and future positioning in biologics is greatly at risk. I don't believe BDX will allow that risk. There are too many benefits of owning the Unifill platform and too many growth opportunities BDX has to leverage that technology into greater revenues quickly"

Well he's convinced me.
Any thoughts.

CREDIT