Unilife Accelerates Investment to Meet Increasing Demand from New and Existing Customers, page-2

So, sequential growth in quarterly cash receipts has taken a brief hiatus, yet we have:

Actual Revenue for fiscal year 2014 anticipated to be at the high end of the $12 million to $15 million guidance range.

Unifill commercial sales to commence this fiscal quarter and accelerate through FY2015 and FY2016

First commercial Unifill Finesse manufacturing line operational with additional lines on order and in progress.

Scaling-up of operational capacity to support increasing demand from existing and new pharmaceutical customers - some of this expansion occurring ahead of schedule as customers seek to accelerate their commercial launch timelines under existing contracts.

Commencement of "a multitude of new programs for the customization and supply of products from across the product portfolio."

Going into fiscal 2015 with 12 active programs from 11 customers, with "additional contracts in the final stages of formalization" - presumably all existing programs as previously discussed still in place.

Cash receipts and revenue expected to increase during fiscal year 2015 via a diversified and expanding base of customers and programs.

Ongoing investments in capital equipment and R&D during fiscal year 2015 to be funded by customer payments under existing and upcoming programs, debt financing with OrbiMed and current cash on hand. This suggests the OrbiMed deal will close out with the additional tranches being received due to milestones being met.

Capital equipment financing will be utilised, where appropriate, to support the continued scale-up of production capabilities as previously stated.

The company remains on schedule to commence the commercial sale of three separate Unifill product lines to multiple customers between now and the middle of fiscal year 2015 - so by calendar year-end.

Commercial sales of Unifill® syringes scheduled to commence during the current first fiscal quarter of 2015 utilizing an existing commercial manufacturing line.

Commercial sales of the Unifill Finesse® and the Unifill Nexus scheduled to commence during the middle of the fiscal year on additional manufacturing lines that are either in the process of being configured, or are now operational and in the process of being qualified.

Unifill products sold in fiscal year 2015 expected to be used by customers for a range of purposes including compatibility studies and filling and packaging validation prior to the expected commercial launch of target injectable therapies.

In addition to generating revenue via the commercial sale of Unifill products, Unilife expects to receive upfront and milestone-based payments from various customers during fiscal year 2015 - indicative of additional Development and/or Commercial Supply Agreements

Perhaps most importantly, "Unilife also invested in an expansion of its manufacturing capacity for wearable injectors during the fourth quarter of fiscal 2014 in response to accelerating customer demand for programs that are either underway or about to commence."

So, more announcements to come in this space.

Finally, investment in the platform of wearable injectors has enabled the Company to provide customers with a broader range of product configurations "utilizing a manufacturing line with key automated processes earlier than originally anticipated to support drug stability studies, feasibility programs, filling line validation, human clinical trials and human factors studies."

An excellent update, IMO. Significant amount of value-add going on that obviously is not currently reflected in the SP, but soon will be.

Little wonder shorts are exiting.



9