STSSW - Sharps Technology's SC Asset Purchase and $200 Million Syringe Sales Agreement Paves the Way to Begin Producing Prefillable Specialty Copolymer Syringes in the U.S. | Benzinga
Sharps CEO issues letter to shareholders with details about the InjectEZ acquisition, establishing Sharps position in the prefillable syringe (PFS) industry in the U.S.
Signed Syringe Sales Agreement will secure product orders totaling over $200 million for the first five years of operation.
Sharps is negotiating additional pharma-segment purchase commitments for orders over the next three years, with shipments expected to begin by Q2 of 2025.
Demand for Sharps products is increasing due to recent FDA warnings, tariffs, and healthcare's move away from glass syringes.
NEW YORK, May 31, 2024 (GLOBE NEWSWIRE) -- Sharps Technology, Inc., (NASDAQ: "STSS" and "STSSW"), an innovative medical device and pharmaceutical packaging company offering patented, best-in-class syringe products issues a shareholder update from Robert Hayes, the Company's Chief Executive Officer.
Dear Fellow Shareholders,
I want to share additional information about this week's transformative announcement and give you more insight into why the current agreement improves the deal terms we originally negotiated last September. Earlier this week, Sharps Technology signed an enhanced Asset Purchase Agreement with Nephron Pharmaceuticals to acquire the InjectEZ specialty syringe manufacturing assets in West Columbia, South Carolina. We also signed an accompanying five-year, $200 million syringe Sales Agreement with Nephron. Through these agreements, expected to close in about 60 days, Sharps will become the first fully dedicated, specialized polymer prefillable syringe manufacturing plant in North America. The facility will be on track to begin product deliveries in the second quarter of 2025, and we expect that our projected revenue should exceed $35 million for the first 12 months of sales.
We Worked On A Better Deal:
The InjectEZ and Nephron agreements were reworked to better support all parties involved, and as compared to the agreements announced last September, the signed deal includes several important advantages. Sharps is acquiring, for a significantly reduced price, a new state-of-the-art facility equipped with fully automated prefillable syringe system manufacturing, packaging, and distribution capabilities. The acquisition price is $35 million and there will be an assumption of certain related liabilities of up to $4 million. The five-year sales agreement included in the deal provides for Nephron's purchase of our next-generation copolymer PFS syringes manufactured at the SC plant as well as the qualification and future purchase of the 10mL SoloGard polypropylene disposable syringes produced at our Hungary facility. This assurance of supply is expected to support the planned expansion of the 503b operations at the Nephron site. Their minimum orders will include a range of Sharps products totaling over $200 million ...