I think an important piece in Keith's latest report is this...

I think an important piece in Keith's latest report is this statement:

• Unilife now has a secondary source of its products. This is a crucial element for many pharmaceutical companies that cannot risk having important supplies, such as a customized drug delivery device, delayed. As a result, the deal with Flextronics should satisfy the Unilife’s prospective clients’ demand for a back-up source of product and help the Company win more contracts.

Now this statement says a fair bit as to where some of the agreements were at imo, I underlined what was key to myself. We are still on the hook for production equipment, though we should see with new agreements some upfronts to help this out.

Here's the headlines:

	Column 1	Column 2
0	Unilife Corporation
1	Company Update : Medical Device
2	No Respect!
3
4	Rodney Dangerfield must have had Unilife in mind when he created his classic line. Unlike the laughter it evoked for the comedian, though, it represents a challenge manifested in Unilife's share price, much to the dismay of long-term investors. For instance, trading activity on the day after an important Flextronics deal was announced provides the latest evidence of “no respect,” as the UNIS share price fell 3.7%. The Flextronics agreement should have multiple benefits, in our opinion: Unilife now has a secondary source of its products. This is a crucial element for many pharmaceutical companies that cannot risk having important supplies, such as a customized drug delivery device, delayed. As a result, the deal with Flextronics should satisfy the Unilife’s prospective clients’ demand for a back-up source of product and help the Company win more contracts. Flextronics has facilities worldwide. We view the availability of multiple locations around the world as a competitive advantage, since they will enable Unilife’s clients to secure product locally. That should reduce shipping costs and provide a measure of assurance that essential supplies are not far away. Capital expenditures should be manageable. With Flextronics facilities available, Unilife will only have to buy production equipment needed to meet its customers’ needs, rather than a manufacturing plant(s) as well. The commercialization supply agreements that Unilife has secured to date have come with upfront payments to defray the cost of related production equipment, and future deals will likely be structured similarly. We are looking for operations to gather momentum as fiscal 2015 progresses. (Fiscal years end June 30th.) Unilife began shipping commercial product to Hikma in the September quarter, albeit at a low level. But volume should increase in the months ahead and shipments to Sanofi are expected to commence. Other contracts may also contribute in the near future. Since expenses will likely remain fairly level, the revenue growth should move the bottom line closer to breakeven. Moreover, management has announced that cash receipts in the final three quarters of this fiscal year will reach at least $30 million. As a result, the Company should remain in compliance with its OrbiMed debt covenants. The favorable business trends underpin our BUY recommendation and our $13.50 price target.