Unilife Corporation (UNIS), a U.S.-based manufacturer and supplier of advanced drug delivery mechanisms, reported third quarter (ended March 31) fiscal 2011 adjusted (excluding one-time expenses other than stock-based compensation) loss per share of 20 cents, higher than the Zacks Consensus Estimate loss of 13 cents, as well as the year-ago loss per share of a dime.
Net loss (as reported) grew marginally, in absolute terms, by 3.89% year over year to $12.5 million (or 20 cents per share). The higher net loss was on account of lower sales and growth in SG&A expense due to higher salary and share-based compensation expense as the company hired new staff in order to meet its timelines. These increases were partly offset by lower R&D expense.
Revenues
Revenues shrunk to a nominal $0.7 million in the reported quarter, down 70.8% year over year, and was also lower than the Zacks Consensus Estimate of $3 million. The drop in revenues was largely due to a $1.2 million fall in milestone payments from Unilife’s pharma partner who was associated with the industrialization program for the syringe. Unilife’s decision to terminate its contract manufacturing operations caused an additional $0.5 million drop in revenues.
Margin
Unilife reported a gross margin of 30.8% in the third quarter on minor revenue. Among the expense line items, R&D dropped sharply 60.5% year over year to $2.7 million while SG&A increased 30.1% to $9.1 million. The company reported an operating loss of $12.5 million.
Balance Sheet
Cash and cash equivalents (excluding restricted cash) stood at $27.8 million, as of March 31, 2011, down 18.2% year over year. Long-term debt (including current portion) amounted to $21.7 million, as of March 31, 2011.
The company had common stock of $6.4 million, additional paid-in-capital of $166.9 million and accumulated deficit of $109.8 million, on March 31, 2011. Unilife hopes to reduce its cash burn by about $12 million in calendar year 2011.
Outlook
The reported quarter marked a landmark period for the company, during which, it launched initial production of the Unifill syringe at its plant in York, Pennsylvania. Unilife plans to commence initial sales of the syringe to pharma companies in July 2011.
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) among others.
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