Unilife Corp. (NASDAQ: UNIS) is an emerging medical device manufacturer with business segments that include pre-filled syringes for pharmaceutical companies to deliver injectable medications, sharps safety devices for healthcare facilities, and contract manufacturing of medical devices.
At Seeking Alpha, contributor Yale Bock wrote an article exploring the company's value by posing the questions: "Will it succeed in the effort [to grow itself into a much larger company by 2015]? Is the common stock a good value at the current stock price of $3.70 per share?"
In terms of Unilife's growth potential, Bock observed,
Although Unilife has large target markets, "there are also changes in the existing market that could help make its ambitions a reality. Biologics are large molecule drugs and currently make up about 10% of all drugs on the pharmaceutical market...Almost all biologics require an injection, and many are expensive drugs requiring specific formulation and delivery requirements.
Pharmaceutical companies and biotechnology companies are looking for ways to differentiate their drugs from competition in all areas: existing patent protected drugs, generics, and biosimilar drugs. Many large pharmaceutical companies have drugs coming off patent in the next five years, and if they have a unique delivery device, it is maybe possible to extend the product life for a few years. A unique delivery device packaged with a drug coming off patent might be a very good strategy to employ for all of the large pharmaceutical players facing patent expirations."
Bock further analyzed the company in terms of its existing state of business, liquidity position, product portfolio and competitive advantages, valuation, and other developments and considerations. He concluded,
"Personally, I find UNIS to be a very promising company, and 2012 will prove to be critical to see a large increase in sales growth and narrowing operating losses. My own view is if you have a long time horizon and are willing to speculate a bit, this might be a company to consider."