They are flush with money because they are good at handling it and know where to invest it to get the best returns.
Their $15m non refundable deposit is just about the only thing which is keeping me in this stock. If amgen doesnt get a deal across the line - heads will roll. Multiple billion dollar company or a penny pincher mob - $15m is still a lot of money.
No board will allow this sort of investment unless there is a solid business case behind it. If there were grey areas still to be negotiated - Amgen would have had a clause to recoupe much of this investment back.
Amgen has got a product which will be immediately put to be used with the WI from unilife.
Ofcourse all of this is from my general understanding of business practices in completely different industry - I dont profess to know at what risk level the big biotech's operate. Still dont believe they would give $15m for a little friendly chat which doesnt result in happy endings.
UNS Price at posting:
17.0¢ Sentiment: None Disclosure: Held