Unilife Corporation (UNIS) recently stated that it has initiated...

Unilife Corporation (UNIS) recently stated that it has initiated a planned realignment of its infrastructure in order to gear itself for the approaching full commercial production and marketing of its drug delivery mechanism to pharma and other clients. Unilife?s Chief Operating Officer, Dr. Ramin Mojdeh, is in charge of the realignment effort.

The implementation of efficient processes should improve Unilife?s cash flow by more than $12 million in calendar 2011. By eliminating or delaying certain unnecessary expenses, the company forecasts a drop of $5 million in operating expenses for calendar 2011.

In addition, it will curtail capital expenditures to strengthen cash reserves by about $7 million. These changes, once implemented, will permit Unilife to more efficiently utilize cash for the manufacture and marketing of the Unitract 1mL syringe, the Unifill prefilled syringe and other nascent products.

During the past couple of years, Unilife bolstered its operational abilities in an effort to meet both the higher production targets as well as the strict quality assurance requirements of pharmaceutical clients. This effort included increasing the staff headcount to 150, large capital expenditures and the establishment of a modern plant in York, Pennsylvania. Consequently, Unilife has fulfilled all quarterly targets, after July 2008, for its Unifill syringe resulting in production of this product about 9 months ahead of earlier estimates.

Besides eliminating redundant staff, Unilife is also bolstering its marketing and sales function to facilitate the quicker development of commercial ties with additional pharma companies and healthcare providers. The company will utilize a part of its operational savings to aid the development of a growing portfolio of products.

Unilife believes that the realignment will leave it in a strong position to secure development and exclusivity deals with suitable pharma companies, which will facilitate the launch of some pipeline products in the second half of 2011.

Re-domiciled in the U.S., in January 2010, Unilife is a medical devices company that designs, manufactures and sells retractable syringes. The company sells its prefilled syringes to pharma manufacturers, suppliers of medical products to healthcare facilities and patients who self-administer prescription drugs. Its patented syringes provide integrated safety, which is designed to protect patients from needle stick injuries. Unilife competes with Becton, Dickinson and Company (BDX - Analyst Report) among others.