Unilife Corporation Announces Financial Results For Fiscal Year 2013 Fourth Quarter

 Unilife Corporation Announces Financial Results For Fiscal Year 2013 Fourth

PR Newswire

YORK, Pa., Sept. 10, 2013

YORK, Pa., Sept. 10, 2013 /PRNewswire/ -- 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 June 30, 2013, (the fourth quarter of Fiscal Year 2013).

Recent Highlights

  oUnilife signed a long-term supply contract with Sanofi to supply the
    Unifill Finesse™, a customized device from its Unifill platform of
    prefilled syringes, for use with the anti-thrombotic therapy Enoxaparin
    Sodium sold under the brand names Lovenox® and Clexane® ("Lovenox").
    Unilife has granted Sanofi the exclusive use of the Unifill Finesse with
    anti-thrombotic drugs during the contract period, which can extend to
    2024. Following a four year ramp-up period after market entry, exclusivity
    will be maintained, subject to Sanofi purchasing a minimum of 150 million
    units of the Unifill Finesse or other Unifill syringes per year. In
    addition to future revenue from the sale of Unifill Finesse syringes,
    Unilife may receive up to $15 million from Sanofi in milestone based
    payments with $5 million of these payments expected in 2013.

"The major supply contract with Sanofi that we announced this week for our
flagship platform of Unifill syringes will establish Unilife as one of the
leading suppliers of prefilled syringes in the industry," stated Mr. Alan
Shortall, CEO of Unilife. "In addition to the Sanofi supply contract, we are
equally as enthusiastic about many other major large-scale contracts that are
now being finalized. Several of these upcoming contracts will generate
upfront and recurring revenue. We expect these current and upcoming contracts
will generate cash that will substantially offset our cash burn rate for this
fiscal year. As many of these agreements have terms between five and fifteen
years in length, I believe they will underpin Unilife's long-term success and
sustainable growth.

"We remain committed at this time to minimizing future dilution to existing
shareholders by utilizing other sources of capital to support our operations
while these upcoming contracts are finalized and begin to generate revenue.
Given the signing of the Sanofi supply contract, re-negotiations of the terms
we received previously for a large non-equity based debt financing are
underway and are expected to be completed shortly," Mr. Shortall concluded.

Financial Results for Three Months Ended June 30, 2013

Revenues for the three months ended June 30, 2013, were $0.7 million compared
to $1.2 million for the same period in 2012. The Company's net loss for the
three months ended June 30, 2013, was $22.0 million, or $0.25 per share,
compared to a net loss of $14.9 million, or $0.21 per share, for the same
period in 2012. This increase is primarily attributable to an increase in
depreciation expense of $4.2 million primarily relating to a loss on disposal
of equipment to manufacture the Unitract product line, and an increase in
non-cash share-based compensation costs of $4.0 million, partially offset by
lower expenses in other areas of R&D and G&A. 

Adjusted net loss for the three months ended June 30, 2013, was $9.9 million,
or $0.11 per share, compared to $11.0 million, or $0.15 per share, for the
same period in 2012. Adjusted net loss excludes non-cash share-based
compensation expense, depreciation and amortization, loss on disposal of
equipment and interest expense.

Unilife had $8.1 million of total cash and cash equivalents, including $2.4
million in restricted cash as of June 30, 2013.

Conference Call Information

Management has scheduled a conference call for 4:30 p.m. U.S. EDT on Tuesday,
September 10, 2013, (Wednesday, September 11, 2013 at 6:30 a.m.  AEST), to
review the Company's financial results, customer partnerships and future
outlook. The conference call and accompanying slide presentation will be
broadcast over the Internet as a "live" listen-only Webcast. An archive of
the presentation and webcast will be available for 30 days after the call. To
listen, please go to: http://ir.unilife.com/events.cfm.

About Unilife Corporation

Unilife Corporation (NASDAQ: UNIS / ASX: UNS) is a U.S. based developer and
commercial supplier of injectable drug delivery systems. Unilife's broad
portfolio of proprietary device technologies includes prefilled syringes with
automatic needle retraction, drug reconstitution delivery systems,
auto-injectors, wearable injectors and targeted delivery systems. Each of
these innovative and highly differentiated device platforms can be customized
by Unilife to address specific customer, drug and patient requirements.
Unilife's global headquarters and state-of-the-art manufacturing facilities
are located in York, PA. For more information, please visit www.unilife.com or
download the Unilife IRapp on your iPhone, iPad or Android device.

Forward-Looking Statements

Thispress release contains forward-looking statements. All statements that
address operating performance, events or developments that we expect or
anticipate will occur in the future are forward-looking statements.These
forward-looking statements are based on management's beliefs and assumptions
and on information currently available to our management. Our management
believes that these forward-looking statements are reasonable as and when
made. However, you should not place undue reliance on any such forward-looking
statements because such statements speak only as of the date when made. We do
not undertake any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. In addition, forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results, events and developments to differ materially from our historical
experience and our present expectations or projections. These risks and
uncertainties include, but are not limited to, those described in "Item1A.
Risk Factors" and elsewhere inourAnnual Report on Form 10-Kand those
described from time to time in other reports which we file with the Securities
and Exchange Commission.

Non-GAAP Financial Measures

U.S. securities laws require that when we publish any non-GAAP financial
measure, we disclose the reason for using the non-GAAP measure and provide
reconciliation to the most directly comparable GAAP measure. The presentation
of adjusted net income (loss) and adjusted net income (loss) per share are
non-GAAP measures. Adjusted net income (loss) represents net income (loss)
calculated in accordance with U.S. GAAP as adjusted for the impact of
share-based compensation expense, depreciation and amortization and interest

Management believes the presentation of adjusted net income (loss) and
adjusted net income (loss) per share provides useful information because these
measures enhance its own evaluation, as well as investor's understanding, of
the Company's core operating and financial results. Non-GAAP financial
measures should be considered in addition to results prepared in accordance
with GAAP, but should not be considered a substitute for, or superior to, GAAP
results. A reconciliation of net income (loss) to adjusted net income (loss)
is included in the attached table.

General: UNIS-G

Investor Contacts          Analyst           Investor Contacts (Australia)    Media
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Consolidated Balance Sheets
                                      June 30,
                                      2013                  2012
                                      (in thousands, except share data)
Current Assets:
Cash and cash equivalents        $                $    11,410
Restricted cash              2,400                    2,400
Accounts receivable                   654                      1,042
Inventories                           71                       212
Prepaid expenses and other current    409                      676
Total current assets            9,270                    15,740
Property, plant and equipment, net  46,106                   52,514
Goodwill               11,498                   12,734
Intangible assets, net       23                       34
Other assets                 1,504                    1,286
Total assets                      $                 $    82,308
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                  $                $     2,399
Accrued expenses                  2,444                    2,209
Current portion of long-term          3,826                    5,655
Deferred revenue                3,010                    2,595
Total current liabilities           12,708                   12,858
Long-term debt, less current          20,045                   23,110
Deferred revenue                      50                       2,595
Total liabilities                     32,803                   38,563
Stockholders' Equity:
Preferred stock, $0.01 par value,
50,000,000 shares authorized as of
June                                —                        —
 30,2013; none issued or
outstanding as of June 30, 2013 and
Common stock, $0.01 par value,
250,000,000 shares authorized as of
 30, 2013; 95,602,558 and
75,849,439 shares issued, and         956                      758
95,573,888 and
outstanding as of June 30, 2013 and
2013, respectively
Additional paid-in-capital     268,157                  212,326
Accumulated deficit                  (235,832)                (172,634 )
Accumulated other comprehensive       2,457                    3,435
Treasury stock, at cost, 28,670
shares as of June 30, 2013 and        (140)                    (140 )
 Total stockholders'         35,598                   43,745
Total liabilities and stockholders'   $                 $    82,308
equity                        68,401

Consolidated Statements of Operations
                              Three Months Ended        Year ended
                              June 30,                  June 30,
                              2013         2012         2013         2012
                              (in thousands, except per share data)
Industrialization and         $       $       $       $    
development fees                —         565          —        2,820
Licensing fees                634          645          2,623        2,638
Product sales and other       33           16           120          61
Total revenues                667          1,226        2,743        5,519
Cost of product sales         1            476          128          584
Gross profit                  666          750          2,615        4,935
Operating expenses:
Research and development      6,545        6,909        21,749       23,137
Selling, general and          10,278       7,113        32,437       27,685
Depreciation and amortization 5,484        1,239        9,487        4,582
Total operating expenses      22,307       15,261       63,673       55,404
Operating loss                (21,641)     (14,511)     (61,058)     (50,469)
Interest expense              540          572          2,392        2,120
Interest income               (6)          (22)         (54)         (124)
Other expense, net            (198)        (200)        (198)        (163)
Net loss                      $          $          $          $  
                              (21,977)     (14,861)     (63,198)     (52,302)
Net loss per share:
Basic and diluted net loss    $        $        $        $    
per share                     (0.25)       (0.21)       (0.78)       (0.78)

Reconciliation of Non-GAAP Measure
                                    Three Months Ended    Year Ended
                                    June 30,              June 30,
                                    2013       2012       2013       2012
                                    (in thousands, except per share data)
Net loss                            $        $        $        $  
                                    (21,977)   (14,861)   (63,198)   (52,302)
Share-based compensation expense    6,089      2,098      13,287     7,886
Depreciation and amortization       1,432      1,239      5,435      4,582
Loss on disposal of equipment       4,052      —          4,052      —
Interest expense                    540        572        2,392      2,120
Adjusted net loss                   $       $        $        $  
                                    (9,864)    (10,952)   (38,032)   (37,714)
Adjusted net loss per share –       $      $      $      $    
diluted                             (0.11)     (0.15)     (0.47)     (0.56)

SOURCE Unilife Corporation

Website: http://www.unilife.com
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