According to Unilife, the changes will enable it to focus its cash resources on the production and sale of the Unifill prefilled syringe, the Unitract 1mL syringe, and the commercialisation of other pipeline products.
The US-based syringe maker claims that through the “elimination or deferral of expenditures no longer required” it can boost its cash flow and extend cash reserves by over $12m (€8.4m) during 2011.
Unilife says the savings will come in the form of $5m (€3.5m) from reduced operating expenses, and $7m (€4.9m) from “streamlining capital spending programs.”
In addition, it will seek to “eliminate a number of redundant positions across various levels of the organisation.”
Commenting on the announcement, Ramin Mojadeh, Unilife’s chief operating officer, said: “Having completed the key industrial milestone of initial Unifill syringe production well ahead of schedule, Unilife can implement a planned realignment of its business structure to better service the needs of pharmaceutical customers and deliver value to shareholders.”
Over the past two years, Unilife claims to have significantly expanded its operational capabilities to meet the production requirements and quality assurance expectations of its current and prospective customers.
It increased its workforce to 150 staff, invested heavily in R&D, and made significant investments in capital equipment. It also developed a state-of-the-art manufacturing facility in York, Philadelphia, US.
The company claims this ‘upfront’ investment allowed it to meet all its previous targets for the Unifill syringe, which went into production last week, nine months ahead of schedule.
Unilife posted disappointing figures for Q2, 2011, with significant losses attributed to the relocation of its global headquarters and a lack of income from its 2008 partnership with Sanofi-Aventis.
The French drug giant put pen to paper in a deal with Unilife focusing on the industrialisation of the Unifill syringe range, but the expected revenues resulting from the agreement failed to materialise.
However, Mojadeh remained upbeat about the company’s prospects.
“By introducing these measures, we will accelerate our go-to-market strategy while strengthening our financial profile,” he said.