Streetsweeper takes another shot at Unilife


Building on a bearish SA piece by Kerrisdale Capital, StreetSweeper adds additional red flags: 1) An FDA report mentioning "recurring systemic issues" and noting "concern over the firm's promotional materials 2) Reality consistently falling short of management boasts 3) A lawsuit by a fired former VP has not been dismissed, according to the plaintiffs attorney, and more.

"Pre-filled syringe company Unilife (UNIS -3%) is losing millions and management is handing investors a minus 190% return on their money ... But its executives are living like kings," writes the StreetSweeper's Sonya Colberg.

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  • Richard Harris
    , contributor
    Comments (16) | Send Message
     
    Hogwash! Another desperate attempt by shorts to impact Unilife's recent stock rise.

     

    In reference to the above these are the comments made on the Q4 2013 earnings call in September 10, 2013 and the findings:

     

    “And the FDA came in, in May with 4 days, with 2 auditors and they went through all our quality systems, to which most of the allegations relate to our quality and regulatory issues, and the FDA had no findings. In fact, in the final sign-off, they said to me that our quality system was exemplary for a medical device company. “

     

    On November 6, Unilife issued a letter to stockholders regarding the securities class action lawsuit.

     

    “With respect to the allegations made in these claims, I can assure all of you that Unilife is in full compliance with all applicable regulatory requirements. In 2013 two regulatory compliance audits of Unilife's quality system were performed. Both audits resulted in zero observations, i.e., no deviations from applicable quality standards were noted. In February 2013, the Notified Body NSAI (National Standards Authority of Ireland) performed an audit of our quality system, which is equivalent to an FDA audit for European countries. This audit resulted in zero observations, i.e., no deviations from the applicable standards were found. The auditors' conclusion was that Unilife was in compliance with the applicable standards. In March, the FDA performed an audit of Unilife's quality system and facility. The FDA closed out the audit with no FDA 483 Inspectional Observation issued, i.e., no deviations from the applicable standards were noted. Finally, Unilife is in full compliance with all applicable securities laws. As a public company in the US we are subject to a legal system in which employees can sue companies for undeserved compensation while making unfounded allegations with impunity, and plaintiffs lawyers can first advertise for clients and then bring a lawsuit for the mere cost of the court filing fee in the hope that the company will settle with them. “

     

    Fact Check: The class-action lawsuit has been dismissed but the lawsuit by the former employee is still active. UNIS has given already given investors a tremendous return on their money from $1.80 and the reality is that Unilife has over 30 deals presently being negotiated.
    27 Feb 2014, 12:14 PM Reply Like
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