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Unilife Corporation Message Board

  • jimmypiersal jimmypiersal May 12, 2013 9:07 PM Flag

    A little caution

    Here's something out of there original announcement back in April about the $120m deal. As you read it, it has some ifs.

    I also read through some old posts on the message board and the CEO is given to hyperbole - so a little caution going into the week. I mean if comes out like a rocket again, I'm all over it; but I will keep a trigger finger ready to sell in an instant.

    "Unilife will supply the Customer with a customized device from its EZMix platform of dual-chamber delivery systems ("EZMix" or the "device") for use with a lyophilized drug (the "Drug") that requires mixing at the time of injection. The Drug, which is a proprietary version of an approved therapy, is entering late-stage clinical development with the Customer planning an accelerated pathway to U.S. regulatory approval.
    Unilife expects to generate up to $110 million in revenue during the 15-year agreement based upon a customization and production scale-up program, commercial device sales and a royalty of net drug sales. Unilife will immediately begin to generate revenues under the program.
    The Customer will pay Unilife approximately $3 million over a 12 to 24-month period for the customization and supply of prefilled EZMix devices for scheduled activities including human clinical drug trials and compatibility testing. Unilife will receive an additional $3 million from the Customer to fund the production scale-up of high-volume assembly equipment to manufacture the customized device at commercial volumes.
    In exchange for the Customer securing worldwide exclusivity to EZMix for its target drug, Unilife will receive royalty payments on net annual commercial revenue of the Drug. These royalty payments are expected to represent approximately a third of the $110 million in cumulative revenues generated by Unilife during the contract period. The agreement includes a guaranteed minimum annual royalty payment that the Customer must provide to Unilife in order to maintain EZMix exclusivity for the target drug.
    For commercial purposes and due to confidentiality provisions in the agreement, additional terms of the contract and the identity of the Customer are to remain confidential at this time."

 
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