Unilife revenues decrease to $0.7 million for three months ended December 31, 2012

Feb 12 2013

Unilife Corporation ("Unilife" or "Company") (NASDAQ:  UNIS; ASX: UNS), a developer and supplier of injectable drug delivery systems, today announced its financial results for the quarter ended December 31, 2012, (the second quarter of Fiscal Year 2013).

Highlights for the Fiscal Year 2013 Second Quarter:

• In November 2012, Unilife announced that its platform of bolus injection devices had been selected by a global pharmaceutical company to enter a final stage of evaluation as its preferred choice for use in a multi-drug program. Unilife's bolus injectors have also been selected by many other pharmaceutical companies for targeted use with late-stage pipeline drugs. Negotiations for agreements are underway in each case.
• In December 2012, Unilife announced that a U.S. based pharmaceutical company has commenced stability and evaluation studies of the Unifill^® syringe for use with multiple injectable drugs.  The target drugs, which include both pipeline drugs as well as commercially approved drugs that will benefit from lifecycle extension, are high-value therapeutics for chronic diseases and require periodic injections.
• Unilife continued to supply initial batches of Unifill syringes to many pharmaceutical companies that are in various stages of evaluating its use for a range of approved and late-stage pipeline drugs. In addition to prospective supply and clinical development contracts, we expect other customers to enter their drugs into stability studies with Unifill this calendar year.
• Unilife announced the development of its Depot-Ject™ and Unilife Ocu-Ject™ platforms for the targeted delivery of drugs to specific regions of the body such as the eye. These high-precision drug delivery platforms are now being pursued by multiple interested parties.
• The RITA™ disposable auto-injectors and LISA™ reusable auto-injectors were supplied to a number of pharmaceutical companies for evaluation and user studies. Unilife has been advised that these evaluations are progressing favorably.
• The Unilife EZMix™ drug reconstitution system was selected by a pharmaceutical company for use with a late-stage pipeline drug. Negotiations for an EZMix supply contract with this company are underway.
• Unilife expanded its commercial development team with the appointment of Douglas Stout, Derek Giersch, Joseph Crusco as Senior Directors of Commercial Development; and Jashin Gugnani as Director of Commercial Development in October 2012; as well as the appointment of Glenn Thorpe as Vice-President of Commercial Development in February 2013.

"During the quarter, we were pleased to provide shareholders with greater insight into the size and scope of our commercial pipeline," stated Mr. Alan Shortall, CEO of Unilife. "Out of 31 active programs selected from our deep and rapidly expanding commercial pipeline, we expect several to generate initial revenues during calendar year 2013.  Given the size and long-term nature of many of these prospective agreements, we are confident they will underpin our future success.

"Over the last few weeks, we raised approximately $13.4 million in net equity capital, which has strengthened our balance sheet as we look to finalize several commercial supply contracts and clinical development agreements.  We are also working to conclude discussions with U.S. institutions to secure long-term debt financing that will support the Company's operational activities and minimize dilution for the foreseeable future," Mr. Shortall concluded.

Financial Results for Three Months Ended December 31, 2012
Revenues for the three months ended December 31, 2012, were $0.7 million compared to $0.9 million for the same period in 2011. The Company's net loss for the three months ended December 31, 2012, was $14.6 million, or $0.19 per share, compared to a net loss of $12.9 million, or $0.19 per share, for the same period in 2011. The increase in the net loss was primarily attributable to the decrease in revenue and an increase in non-cash share-based compensation expenses.

Adjusted net loss for the three months ended December 31, 2012, was $9.7 million, or $0.12 per share, compared to $9.6 million, or $0.14 per share, for the same period in 2011. Adjusted net loss excludes non-cash share-based compensation expense, depreciation and amortization and interest expense.

Unilife had $8.3 million of total cash, including restricted cash, as of December 31, 2012, which does not reflect the $3.8 million in net proceeds the Company received from the implementation of its At-the-Market (ATM) facility with Cantor Fitzgerald in January 2013; or the $9.6 million in net proceeds the Company received from a common stock offering with a U.S. based institutional investor in February 2013.