STSSW - 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. | Benzinga
Sharps will strengthen its manufacturing capacity with a $35 million acquisition of assets, establishing the Company's position in the specialized copolymer prefillable syringe (PFS) system industry in the U.S.
Through the syringe Sales Agreement and the closing of the APA, Sharps will secure product orders totaling over $200 million for the first five years of operation
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, $200 million syringe Sales Agreement (SA) with Nephron Pharmaceuticals to complement the Company's Asset Purchase Agreement (APA) to acquire the InjectEZ specialty syringe manufacturing assets in West Columbia, South Carolina. The facility will be the only fully dedicated, specialized COC (cyclic olefin copolymer) prefillable syringe manufacturing plant in North America and was designed with innovative manufacturing capabilities to produce high-demand, specialty syringe systems. Product delivery is scheduled to begin late in the second quarter of 2025, with projected revenue totaling approximately $37 million for the first 12 months of sales.
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 $200 million Sales Agreement in place for copolymer prefillable syringes, we will substantially accelerate Sharps' revenue growth allowing the Company to create a new level of revenue and performance," commented Robert Hayes, Sharps Technology CEO. "Together, these landmark transactions will undeniably position the Company for future growth, providing meaningful benefits to both patients and shareholders."
5-Year Sales Agreement:
In concert ...