Unilife releases internal investigation results; finds little financial damage

Troubled drug delivery device maker Unilife ($UNIS) said an internal investigation uncovered little financial damage in the wake of the departures of its board chairman, and its CEO and founder.

In an SEC filing cited by the Central Pennsylvania Business Journal, the company said that other than a $62,000 loan payment linked to former board chair Jim Bosnjak and about $88,000 in unreimbursed personal expenses paid to founder and former CEO Alan Shortall, the company’s investigation uncovered no financial damage.

Shortall resigned last March and Bosnjak resigned in 2015.

Unilife also said in the regulatory filing that it did uncover lapses in effective controls, risk assessment process, information and communication process, and monitoring activities under the oversight of its board and the leadership of Shortall.

"The company is committed to remediating the material weaknesses as promptly as possible," Unilife said in the filing, which also outlined the steps the company is taking to get a handle on its internal controls.

The maker of injectable drug-delivery systems is facing a number of lawsuits, including a class-action suit that looks to blame stock losses on the company’s mismanagement and deceptive practices.

Unilife has struggled in the past few years. It recently let go of about 140 employees and last summer laid off about 270 people as part of restructuring efforts.

Earlier this year, Unilife got a much-needed cash infusion from Amgen ($AMGN) worth up to $75 million in return for its wearable injectors within selected drug classes and nonexclusive rights to all of Unilife's proprietary injectable delivery systems within the therapeutic areas of oncology, inflammation, bone health, nephrology, cardiovascular and neuroscience.