Unilife Signs Second Major Pharma Deal of the Year

York, Pa.-based Unilife Corp., which makes injectable drug delivery systems, has signed a long-term supply contract with French pharmaceutical company Sanofi. The contract period could extend up to 2024.

Unilife has developed a customized syringe, the Unifill Finesse, based on its Unifill platform of prefilled syringes with needle retraction. The device, specially made for Sanofi, is filled with the anti-thrombotic (anti-clotting) therapy Enoxaparin Sodium sold under the brand names Lovenox and Clexane. Unilife has granted Sanofi the exclusive use of the Unifill Finesse with anti-thrombotic drugs during the contract period. 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.

The contract allows for Unilife to provide its Unifill syringes, including the Finesse, to additional customers in all other therapeutic classes outside of anti-thrombotics. In addition to future revenue from the sale of Finesse syringes, Unilife may receive up to $15 million from Sanofi in milestones based payments with $5 million of these payments expected in 2013.

“Our Unifill syringes set a new standard for the delivery of all prefilled biologics, drugs and vaccines,” said Alan Shortall, CEO of Unilife. “Like other game-changing products in our broad device portfolio, the distinctive visual, safety and functional benefits of Unifill can be leveraged by pharmaceutical customers to enhance and differentiate their injectable therapies. We thank the Sanofi Industrial organization for their innovative vision and their support, and look forward to a long-term partnership. The signing of this supply contract reaffirms the business model we have worked so hard in pursuing. The long-term contract provides the customer with continuity of supply. The provision of exclusivity within a drug class also provides the customer with an opportunity to leverage our device’s competitive advantages to drive user preference and differentiate their drug brands against competitors.”

Unilife has reported $2.1 million in sales over the first three quarters of its fiscal year 2013. According to the Associated Press, In April, the company signed a 15-year supply agreement with an undisclosed U.S. pharmaceuticals maker. Unilife said the customer will use its EZMix syringe and said it could get as much as $110 million in total revenue from the deal.

Jefferies & Co. analyst Raj Denhoy estimated Unilife could get $105 million in annual revenue from Sanofi, based on current product prices.

“This deal had been anticipated for the better part of two years and its signing not only transforms the revenue outlook for Unilife, but it also sweeps away the layers of doubt that had accumulated around the company and stock,” Denhoy wrote.