Griffin Securities Upgrades Unilife Corporation (UNIS) to Buy on Amgen Deal

Griffin Securities analyst Keith Markey upgraded Unilife Corporation (NASDAQ: UNIS) from Neutral to Buy with a price target of $1.50 after the company and Amgen announced exclusivity agreement to finalize a relationship by January 31st.

As part of the deal Amgen will acquire a 19.9% equity stake in Unilife and provide a loan of an unspecified amount that should enable the Company to operate on a sound financial footing. Unilife will give access to its large-volume wearable injectors on a non-exclusive basis. Amgen will have exclusive access to Unilife’s 1 mL wearable injector for certain small-volume drugs. Amgen may source its device needs from a third party.

Amgen has the right to walk away, though that seems unlikely, as the biotech giant already paid a $15 million non-refundable deposit to Unilife, the analyst noted.

"The price of Unilife’s CDIs, which trade on the Australian Stock Exchange, more than doubled on the announcement," analyst Markey said. "We think U.S. investors will like it too and have raised our rating to BUY with a price target of $1.50. We will reinstate our financial estimates upon completion of the agreement."

For an analyst ratings summary and ratings history on Unilife Corporation click here. For more ratings news on Unilife Corporation click here.

Shares of Unilife Corporation closed at $0.50 yesterday.

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