Unilife Corp (NASDAQ:UNIS) Struggling To Break Even

[[tagnumber 0]][[tagnumber 1]]Unilife Corp (NASDAQ:UNIS) has had a lot going on recently. On the one hand, the developer of injectable drug delivery systems has a whole arsenal of product platforms ranging from pre–filled syringes and auto–incetors to multi–day wearable insulin patch pumps. On the other hand, some of Unilife’s current and/or prospective shareholders have not been satisfied with the company’s actions towards enhancing shareholder value and have lately prompted management to hire a strategic advisor to help them find the way to do just that. While both parties imply that there is still a lot to be desired with regard to UNIS’s welfare, let us examine where the healthcare enterprise stands on the eve of its fourth quarter and fiscal year 2015 results announcement due on Monday.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 4]]While it is necessary to know what Unilife will reveal during its earnings conference call on Monday after market close as management will also discuss both current financial conditions and future endeavors, a quick glance at the most recent, post–Q4 and respectively post–FY2015 developments around the company also raise a few important points. No matter what amount of assets UNIS will report as of June 30 on Monday, management struck a couple of deals in July in order to ensure higher flexibility in Unilife’s financial condition, namely:[[tagnumber 5]]– an amendment of an earlier debt agreement with Orbimed by negotiating the removal of a covenant requiring Unilife to generate at least $20 million in cash receipts from customers during the first six calendar months of 2015 and[[tagnumber 5]]– sealing a couple of financing agreements allowing the company to utilize up to $70 million over the next 24 hours at its own discretion.[[tagnumber 2]] [[tagnumber 0]]The former does not really come as a surprise since UNIS has failed to meet the target and has instead raked in $14.4 million. The latter might be caused by Unilife’s never–ending quarterly losses which have now totaled a whopping $80 million for the last four quarters on record.[[tagnumber 2]] [[tagnumber 0]]The sheer amount of net loss might be one of the reasons why UNIS’s management announced Morgan Stanley & Co. LLC as their new strategic advisor last week in an effort to change the negative trend by way of a potential sale, a new partnership or through licensing of its proprietary technologies to third parties. While this is not to say that current managers have run out of ideas about how to turn the tide by themselves, getting some help in this endeavor would hardly hurt.[[tagnumber 2]] [[tagnumber 0]]Unilife closed this week’s final session at $1.36 per share, up 8.8% from the day before and marking a 21% improvement over the 52–week low of $1.12 per share reached less than two weeks ago. Still, the stock remains far below its early–2015 quotations around the $4.70 mark and shows no signs of an imminent rebound yet. With the new financial figures being at a stone’s throw now, it will be essential to see if the company has found a way to further commercialize its product pipeline before any strategic alternative takes place.[[tagnumber 2]]