Unilife Corporation (NASDAQ: UNIS) is riding the wave Wednesday as it watches its shares surf into the close. While this stock was up over 50% on Monday, a second wave is being made by a brokerage research report calling for massive upside.
Monday’s driving force was that Unilife entered into an agreement with Sanofi to be the sole provider for a minimum of 15 years of cartridge based wearable injectors for all of Sanofi’s large dose volume drugs, excluding insulin. The company expects that it will receive roughly $50 million from device customization programs relating to this deal with Sanofi and potentially more revenues with other Sanofi affiliates.
The market for wearable injectors is expected to generate $8 billion in sales by 2025, according to Alan Shortall, Chairman and CEO of Unilife.
The driving force behind the second wave of gains on Wednesday was placed upon a report from a firm named Griffin Securities, but we would point out that Griffin is far from a household name when it comes to analyst reports. The firm called this deal a total game changer for Unilife. What caught investors’ eyes is the notion that even average volume and new-product launches would be enough in net income to drive the stock to a $13.50 price target. Ultimately, the wearable injectable deal might even be enough to bring in $1 billion in annual sales.
This is a massive gain when you consider it is effectively two moves higher from the same bit of news.
Another consideration for Unilife, which was released before the Sanofi deal, is that Unilife just recently received an incremental $10 million from its debt financing agreement with OrbiMed.
Unilife saw its shares jump up almost 54% on Monday to a high of $3.34 from the previous close of $2.17. Shares remained relatively dormant on Tuesday with a range on the day of $2.53 to $2.72. However late on Wednesday, shares were up 33% to a high of $3.49 and the stock was up 21% at $3.17 shortly before the close. There had also been 8 million shares traded versus average daily volume of about 768,000. On Monday just over 7 million shares moved as well. Unilife has a 52-week trading range of $2.00 to $5.80 and its market cap is $327 million.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
