Breaking Finance News

Why is Unilife Down 15 Percent Wednesday? (UNIS)

Shares of Unilife (NASDAQ: UNIS) are down 15 percent Wednesday, presumably for two reasons: A downgrade and some really bad press.

First, Cantor Fitsgerald cut the price target for the company but the bigger news is the article published on Forbes’ website today that is far less than a rave review of the company. The article, titled,  How Is A $329M Syringe Company Still Unprofitable After 11 Years? paints CEO Alan Shortall as a shrewd salesman who has hyped up his company to a valuation it doesn’t deserve. A portion of the article reads:

“Punctured by facts, the hype collapses. In the fiscal year ended June 30 Unilife lost $63.2 million on revenue of $2.7 million, selling syringes in different devices that deliver medications. The income from the one big contract it ever scored–a multiyear, $40 million deal with Sanofi, the French pharma–has all but ended. The brightest prospect Shortall shares with investors is with a development-stage drugmaker that’s never earned a nickel.”

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[stock-tools exchange="NASDAQ" symbol="UNIS" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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