Medical Device Company, Unilife (UNS), has gained 30% in a week since securing a $60 million debt deal with Orbimed

Haris Khaliqi

Foster Stockbroking

Medical Device Company, Unilife (UNS), has gained 30% in a week since securing a $60 million debt deal with Orbimed. US$40m was paid upon signing the deal (cash balance increases to ~US$55m), and another two $10m tranches will be available in December 2014 and 2015 at UNS's option. We view the deal as an excellent outcome, providing yet another layer of validation of the business, sufficient funding to get to operational profitability in CY15, and importantly remove the risk of any dilutive equity financing. We are impressed with the calibre of the partner in OrbiMed, which is one of the premier healthcare investors in the world, providing UNS with a significant level of credibility. With balance sheet concerns now removed, focus should return to execution and deal flow. As per management guidance, Q1FY15 is expected to bring a material sequential increase in device revenues. Full report here: (VIEW LINK)

Haris Khaliqi
Haris Khaliqi
Equities Analyst
Foster Stockbroking

Haris specialises in researching small and mid-capitalisation resource and industrial stocks. Specifically, he has experience developing our expertise in the potash, phosphate and specialty metals sectors. Harris? background in business strategy...


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