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.
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