TPS Position Update – March 9, 2016
. . . . . Unilife (NASD: UNIS) – Hold
We recommended Unilife in November 2015 at $0.90.
Last month, on February 22nd, Unilife did what we were hoping it would do.
The firm cut a deal with a major pharma/biotech company to sell its injectable drug delivery systems.
Amgen is buying exclusive rights to some of Unilife’s disease-specific wearable injectors. Unilife picks up a $20 million licensing fee.
But the best could be yet to come. Unilife could pull in additional revenues of up to $75 million from Amgen.
The market reacted to the news by sending $UNIS up more than 15% on heavy trading shortly after the deal was announced.
Since then, the stock has settled back down after hitting $1.17. It trades right now at $0.92.
We are happy to hold, and look for revenue growth and anticipated profit growth to keep pushing the share price higher.
And if the Amgen agreement grows, there’s no telling what might happen.
. . . . Finjan Technologies (NASD: FNJN) – Hold
Late last month Finjan got some good news.
The U.S. Patent Trial and Appeal Board, part of the federal Patent & Trademark Office, rejected claims from Symantec Corporation against two Finjan patents.
The significance of this ruling… Finjan is in a better position than ever to protect its portfolio of cybersecurity patents against future lawsuits.
Where do we go from here?
Finjan Holdings President and CEO Phil Hartstein positions Finjan as, “a focused cybersecurity company with diversified paths to drive future growth.”
There are now $5 million in licensing fees already under contract for 2016.
There are also two patent trials on the docket. One is against Proofpoint in Q2 and the other is against Sophos in Q3.
“We remain committed to vigorously protecting our valuable IP portfolio,” says Harstein. “We plan to manage our cash position while balancing our expertise in technology investments to create long-term value for our licensees, shareholders, and investors.”
We recommended Finjan in April 2015 at $1.64. Today it closed at $0.91.
The firm has been dragged down by the broad tech retreat, but has failed to rebound along with much of the rest of the sector. This may be the result of uncertainties surrounding legal actions.
Whatever the case, we think this is a good time to maintain positions and give the stock an opportunity to make it back above the two dollar level, where it was briefly in September 2015.
Action To Take
- Hold Unilife (NASD: UNIS)
- Hold Finjan Technologies (NASD: FNJN)
Category: TPS Update
