Sharps Technology Signs 5-Year, $200 Million Syringe Sales Agreement and Amendment to Asset Purchase Agreement to Begin Producing Prefillable Specialty Copolymer Syringes in the U.S.
Rhea-AI Summary
Sharps Technology has signed a $200 million, 5-year syringe sales agreement with Nephron Pharmaceuticals and an asset purchase agreement (APA) to acquire InjectEZ's syringe manufacturing assets for $35 million. This acquisition, expected to close within 60 days, will establish a dedicated prefillable syringe manufacturing plant in West Columbia, SC. The facility aims to start production by Q2 2025, projecting $37 million in revenue in the first 12 months. This deal expands Sharps' manufacturing capacity in the U.S. and Europe and positions the company for growth in the copolymer prefillable syringe market.
Positive
- Sharps signed a $200 million, 5-year sales agreement with Nephron Pharmaceuticals.
- The acquisition of InjectEZ's manufacturing assets for $35 million is expected to close within 60 days.
- The new facility will be dedicated to producing copolymer prefillable syringes, a rapidly growing market segment.
- Projected revenue of $37 million in the first 12 months of production starting late Q2 2025.
- Establishment of a state-of-the-art manufacturing facility in West Columbia, SC.
- Expansion of Sharps' manufacturing operations in both the U.S. and Europe.
Negative
- The $35 million acquisition includes assuming liabilities up to $4 million.
- There is no assurance that the acquisition will be completed.
- The commencement of product deliveries is contingent on the completion of plant startup requirements.
News Market Reaction
On the day this news was published, STSS gained 5.38%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Sharps will strengthen its manufacturing capacity with a
Through the syringe Sales Agreement and the closing of the APA, Sharps will secure product orders totaling over
Sharps is negotiating additional pharma-segment PFS purchase commitments for orders over the next 3 years, with shipments expected to begin by Q2 of 2025
NEW YORK and WEST COLUMBIA, S.C., May 30, 2024 (GLOBE NEWSWIRE) -- Sharps Technology, Inc. (the “Company”) (NASDAQ: “STSS” and “STSSW”), an innovative medical device and pharmaceutical packaging company offering patented, best-in-class syringe products, announces the signing of a 5-year,
Management Comments:
“Sharps will now have manufacturing operations in Europe and the United States, and this deal will generate significant short and long-term revenue for the Company. This transaction enables Sharps to enter the highly profitable copolymer prefillable syringe market segment, which is showing the greatest growth rate in the syringe marketplace. With the associated
5-Year Sales Agreement:
In concert with the proposed acquisition of the syringe facility, Nephron has agreed to a 5-year agreement to purchase Sharps’ next-generation copolymer prefillable 10 mL and 50 mL syringes as well as 10 mL SoloGard polypropylene syringes, with minimum orders totalling over
InjectEZ Acquisition:
The acquisition of manufacturing assets in the U.S. will enable Sharps to commercialize innovative copolymer prefillable syringe systems to the healthcare market beginning in the second quarter of 2025. The asset acquisition price is
About Sharps Technology:
Sharps Technology is an innovative medical device and pharmaceutical packaging company offering patented, best-in-class smart-safety syringe products to the healthcare industry. The Company’s product lines focus on providing ultra-low waste capabilities, that incorporate syringe technologies that use both passive and active safety features. Sharps also offers products that are designed with specialized copolymer technology to support the prefillable syringe market segment. The Company has a manufacturing facility in Hungary and has partnered with Nephron Pharmaceuticals to expand its manufacturing capacity in the U.S. For additional information, please visit www.sharpstechnology.com.
About Nephron Pharmaceuticals:
Based in West Columbia, S.C., Nephron develops and produces safe, affordable sterile pharmaceutical products in a state-of-the-art GMP-compliant manufacturing facility. The company also operates an industry-leading 503B Outsourcing Facility division which produces pre-filled sterile syringes, luer-lock vials, IV bottles and IV bags for hospitals across the U.S., in an effort to alleviate drug shortage needs. For more information, please visit www.nephronpharm.com.
Forward-Looking Statements:
This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” “poised” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity, and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance, or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Investor Relations:
Dave Gentry
RedChip Companies, Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
STSS@redchip.com
FAQ
What is the value of the sales agreement signed by Sharps Technology?
What is the cost of the asset purchase agreement Sharps Technology entered into?
When is Sharps Technology expected to begin product deliveries from the new facility?
What is the projected revenue for Sharps Technology in the first 12 months of production?
Where is the new Sharps Technology manufacturing facility located?
What types of syringes will Sharps Technology produce under the new agreement?
