Unilife (UNIS): Speculative, with a Long Way to Go - Cramer

Jim Cramer spoke with Unilife (Nasdaq: UNIS) CEO Alan Shortall the other day, despite Cramer reprehending the stock on April 9, 2010.

CEO Shortall said that there are over 3 million needle injuries that occur every year, and that their company has a solution to that problem. The syringe that he demonstrated for Cramer had a retractable needle, thereby reducing the potential for injury.

Shortall also noted that there are about 2.5 billion pre-filled syringes produced every year, and the company is in-line to produce about 800 - 900 million per year over the next five to six years.

Unilife's gross margins are better than their peers that produce transitional syringes, given that their partners absorb most of the marketing costs.

Shortall commented that the IPO's volatility was due to a glitch where Australian shares didn't transfer correctly to the Nasdaq, causing a shortage, spiking the price of the stock.

Cramer still believes that the stock has a long way to go, due mostly to a narrow range of product offerings, but he did deem it speculative.

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