Unilife (NSDQ:UNIS) shares are up more than 24% this week on a supply deal for its wearable injectors it inked with MedImmune, the biologics division of pharma giant AstraZeneca (NYSE:AZN).
The deal calls for York, Pa.-based Unilife to provide its customized ReadyToGo injectors to MedImmune, potentially for several drugs in MedImmune’s portfolio. Unilife said the agreement is already generating revenues during its fiscal 1st quarter, which ended Sept. 30.
UNIS shares have gained 24.4% since the deal was revealed Nov. 11, surging to $3.26 apiece as of about 12:15 p.m. today, for a 2.8% gain on the day.
“This is the dawn of a new era for injectable drug delivery where a very sophisticated new class of wearable, disposable devices will allow patients to deliver the most advanced therapies with maximum comfort and convenience. I am delighted that Unilife is setting the standard in serving biotech customers, such as MedImmune, and their patients within this category,” CEO Alan Shortall said in prepared remarks.
"MedImmune has one of the richest biologic portfolios in the industry, with 120 large molecule drugs in research and development that comprise half of AstraZeneca’s total clinical pipeline," Shortall told analysts during a conference call yesterday.
Leerink Swann analyst Danielle Antalffy said Unilife needs to ink just a few more deals like the ones with MedImmune and another it inked in September with Sanofi (NYSE:SNY) to become cash-flow positive.
"Timing of contract signings is difficult to predict, as negotiations can take anywhere from 6 months to several years. Of the ~30+ advanced negotiations, we estimate that about 75%-80% are commercial drugs, of which ~25% are generic. With high gross and operating margin potential – 60%-65% gross and ~40% operating – UNIS could quickly move toward being cash-flow positive with just a few deals," Antalffy wrote. "While the [MedImmune] agreement did generate upfront revenues in F1Q:14, the specifics of the contract – including financials and timelines – remain undisclosed. UNIS’ Wearable Injector is a unique product facilitating the administration of highly viscous large molecule drugs that might normally need to be administered via IV. Wearable Injector is a customizable single-use device with an average selling price (ASP) of $20-$30 – a potentially very high-margin product."
In a separate release, Unilife reported fiscal 1st-quarter losses of
$11.2 million, or -12¢ per share, on sales of $3.2 million for the 3 months ended Sept. 30, for a loss reduction of 10.0% on sales growth of 360.5%. Adjusted to exclude 1-time items, net losses were -8¢ per share, a penny shy of Wall Street’s -7¢ forecast.
