unilife corporation announces financial result

Unilife Corporation Announces Financial Results For Fiscal Year 2014 First Quarter

YORK, Pa., Nov. 11, 2013 /PRNewswire/ -- Unilife Corporation ("Unilife" or "Company") (NASDAQ:UNIS; ASX: UNS), a developer and supplier of injectable drug delivery systems, today announced its financial results for the quarter ended September 30, 2013, (the first quarter of Fiscal Year 2014).
Recent Highlights
• In September 2013, Unilife announced the signing of a long-term supply contract with Sanofi. Unilife has agreed to supply Sanofi with the Unifill Finesse™, a customized device from its Unifill® platform of prefilled syringes with automatic, needle retraction, for use with the anti-thrombotic therapy Lovenox®/Clexane®. The contract period can extend up to 2024. In October 2013, Unilife received the first $5 million payment from Sanofi under the commercial supply agreement. Revenue from this payment has not yet been recognized, and was recorded as deferred revenue in the September 30, 2013 balance sheet.
• Earlier today, Unilife announced another cornerstone agreement with MedImmune, the global biologics research and development arm of AstraZeneca, to customize and supply devices from its platform of wearable injectors. Under this agreement, Unilife will supply MedImmune with customized devices from its platform of ReadyToGo™ wearable injectors. Several drug candidates from MedImmune's portfolio may be selected for use with Unilife's wearable injectors under the agreement. Unilife begins generating revenue starting in Q1 FY14 on the basis of customization and supply of its products to MedImmune.
• Unilife continues to accelerate the expansion of its customer base, and has multiple customers in its commercial pipeline. Information regarding each customer partnership will be announced when it can be disclosed.
Mr. Alan Shortall, CEO of Unilife, commented: "As I have said all along, fiscal year 2014 is the inflection point for Unilife when we begin to show rapidly increasing revenue. As such, we reported revenue of $3.2 million in the first quarter of Fiscal Year 2014, which is an increase of 360% over the same quarter in the prior year. Although the comparison is against a small base, it is significant in that it shows the inflection point in our revenue. From here, I expect the slope to be significant.
"As we continue to increase our investment in R&D and operations, which is increasingly offset by our revenue, we are also narrowing our operating loss. As such, we have reported a 10% decrease in operating loss for the first quarter compared with the prior year period. The loss per share has narrowed by 25% to $0.12, compared with the prior year period. I anticipate sequential quarterly growth in Fiscal Year 2014, as well as significant annual growth this fiscal year and beyond.
"We are focused on rapid and significant growth in the long-term. To accomplish this, we will continue to increase our investment in R&D and operations, much of which will be offset by our increasing revenue. I am pleased with the results we are getting from our investment in these areas. A look at the breadth and quality of our product portfolio on our website shows how far we have come over the last two or three years. Although we can be cash flow positive this year, if we wanted to do so, it is not in the best long term interest of our shareholders. This is because limiting our investment in R&D today can dampen the growth we anticipate in 2017 and beyond," Mr. Shortall concluded.
Financial Results for Three Months Ended September 30, 2013
Revenue for the three months ended September 30, 2013, was $3.2 million compared to $0.7 million for the same period in 2012.
The Company's net loss for the three months ended September 30, 2013, was $11.2 million, or $0.12 per share, compared to a net loss of $12.5 million, or $0.16 per share, for the same period in 2012. Adjusted net loss for the three months ended September 30, 2013, was $7.1 million, or $0.08 per share, compared to $9.1 million, or $0.12 per share, for the same period in 2012. Adjusted net loss excludes non-cash share-based compensation expense, depreciation and amortization and interest expense.
Unilife reported $9.4 million of total cash and cash equivalents, including $2.0 million in restricted cash as of September 30, 2013. This does not reflect the first $5 million payment from Sanofi under the commercial supply agreement, which was received in October 2013.