Unilife Shares Surge 20+% Amid LT Supply Deal with Sanofi for Use of Lovenox, Will Receive Min. of $5M, Can Get Up to $15M in Milestone Payments

Unilife Corporation UNIS, a U.S. based designer, developer and manufacturer of injectable drug delivery systems, today announced the signing of a long-term supply contract with Sanofi. Unilife has agreed to supply Sanofi with the Unifill Finesse^™, a customized device from its Unifill^® platform of prefilled syringes with automatic, needle retraction, for use with the anti-thrombotic therapy Enoxaparin Sodium sold under the brand names Lovenox^® and Clexane^® ("Lovenox").  The contract period can extend up to 2024. 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. Unilife can supply its Unifill syringes, including the Unifill Finesse, to additional customers in all other therapeutic classes outside of anti-thrombotics. In addition to future revenue from the sale of Unifill Finesse syringes, Unilife may receive up to $15 million from Sanofi in milestones based payments with $5 million of these payments expected in 2013. This supply contract replaces and supersedes all other agreements previously signed between both parties regarding the Unifill syringe platform. For commercial purposes and due to confidentiality clauses in the Agreement, additional terms of the contract are to remain confidential.