STSSW - Sharps Technology Signs Asset Purchase Agreement to Acquire InjectEZ Specialty Copolymer Syringe Manufacturing Facility and a 10-Year Purchase Agreement for Over $400 Million from Nephron Pharmaceuticals | Benzinga
$50 Million acquisition of InjectEZ strengthens manufacturing capacity and establishes Sharps' leading position in the specialized copolymer prefillable syringe system industry
Signed term sheet providing for up to $75 Million in debt financing to be used for the acquisition
Nephron commits to minimum orders of over $400 Million over 10 years; $30 Million in revenue the first year and subsequent minimum orders totaling over $45 Million in annual revenue through December of 2033
NEW YORK and WEST COLUMBIA, S.C., Sept. 26, 2023 (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, and Nephron Pharmaceuticals Corporation, ("Nephron") a privately owned U.S. leader in contract manufacturing and 503B outsourcing, announce the signing of an Asset Purchase Agreement (APA) to acquire Nephron's InjectEZ specialty syringe manufacturing facility. This includes a 10-Year purchase agreement for over $400 Million from Nephron Pharmaceuticals for next-generation copolymer prefillable syringe systems. Product delivery is scheduled for the first quarter of 2024 with revenue totaling approximately $30 Million for the first twelve months of production and subsequent revenue of over $45 Million per year beginning in 2025, and continuing through 2033.
Management Comments:
"These transactions represent a transformative event for the Company," commented Soren Christiansen, Board Chairman of Sharps Technology. "Recruiting Robert Hayes as our CEO two years ago was a substantial achievement for Sharps Technology and its shareholders. Robert has built a strong team, and together they worked through a successful, multi-month financing process that resulted in selecting a funding partner that is poised to provide up to $75 Million in debt financing to be used for the transaction. The Company will now have manufacturing operations in Europe and the United States and this deal will generate significant short and long-term revenue. This transaction enables Sharps to enter the highly profitable copolymer prefillable syringe segment, which has the highest growth in the syringe market place. The Company is well positioned for future growth and providing meaningful benefits to both patients and shareholders."
"I would like to thank Bill and Lou Kennedy, and the Nephron team, for their commitment since the inception of the manufacturing and research partnership that was signed in 2022," commented Robert Hayes, Sharps Technology CEO. "With this landmark purchase agreement in place for our copolymer prefillable ...