Unilife Corp. (NASDAQ: UNIS)
In the last month Unilife has soared 38.46% and over the last week over 35%. The reason for this monumental gain is that Amgen recently paid Unilife a nonrefundable deposit of $15 million for the exclusive right, lasting one month, to negotiate a licensing deal for some of Unilife’s technology. Furthermore, the stock continues to rise in price as Unilife bides its time in negotiating with the California biotechnology firm.
UNIS Analytics
Although 2015 started out on a positive note for UNIS with the stock trading at a high of 4.65 in late January, the company saw nothing but a downward spiral thereafter and by the end of the year the stock was only worth a dismal 0.45 losing nearly 70% of its value. Is it any wonder that Unilife is drawing out the negotiation process, as each day goes since the disclosure of Amgen’s interest the stock rallies higher and higher. Notwithstanding the fact that it is still valued far lower than this time last year, given the bleak outlook at the end of 2015, gains have been important, allowing the stock to acquire momentum. Where the stock goes from here depends on the terms arrived at with Amgen and Unilife’s earnings report, which is expected on the 8th February.
Amgen Agreement
According to the SEC filing, Amgen paid Unilife Corp a nonrefundable $15m deposit as consideration for a plethora of non-exclusive and exclusive rights for wearable and other injectable devices. The agreement includes Amgen’s right to source and/or sublicense the manufacture of up to 20% of Amgen’s total annual volume needs for such devices. Additionally stating that Amgen agreed to purchase up to 19.9% of the Unilife’s common stock
Unlife Outlook
Unilife Corporation designs, manufactures, and supplies various injectable drug delivery systems in the United States and internationally. For example, the company offers Unifill, a pre-filled syringe with integrated, automatic, and user-controlled retraction. Analysts are expecting earnings per share of $-0.11 on revenue of $6.93M. The consensus range is $-0.13 to $-0.09 for EPS on revenue of $3.50M to $10.00M. The company has previously registered negative earnings surprises in four of the last four quarters with an average of -37.83%.
Unilife News
Apart from its current negotiations with Amgen, last November Unilife Corp announced the signing of the first supply agreement with MedImmune, the global biologics research and development arm of AstraZeneca. This supply agreement provides commercial terms for the long-term supply of a customized device from Unilife’s Precision-Therapy platform of wearable injectors for a monoclonal antibody in late-stage clinical studies in MedImmune’s pipeline.
Company profile
Unilife is a U.S. based company that designs, develops, manufactures and supplies injectable drug delivery systems, including wearable devices. Based in Pennsylvania, their targeted client bases are pharmaceutical and biotechnology companies who aim to sell injectable biologics, drugs and vaccine products.
