Piper Jaffray Downgrades Unilife Corporation (UNIS) to Neutral

Piper Jaffray downgraded Unilife Corporation (NASDAQ: UNIS) from Overweight to Neutral with a price target of $1.00 (from $5.00), saying changing senior management reduces visibility.

Analyst Charles Duncan commented, "On Monday Unilife announced CEO Alan Shortall and President and COO Dr. Ramin Mojdeh have stepped down, effective immediately, with John Ryan, General Counsel to step in as interim CEO during the search for a replacement. We continue to believe the company has an innovative, broadly applicable portfolio of devices, validated most recently by the strategic collaboration with Amgen, and is a possible candidate for additional large-cap partnerships. However, this news on senior leadership decreases our visibility on the company’s 2016 strategy and increases execution risk for the platform in terms of production and new partnerships for the next 6-12 months. On this news, we are therefore downgrading to Neutral from Overweight on increased uncertainty for the platform in advance of the new leadership team. In our model, we are increasing the discount rate on each revenue stream for the company by 5% points (our revenue projections remain unchanged), resulting in a new $1 PT from $5 prior."

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 $0.94 yesterday.

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