• 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 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 $200 million during the period. Upon the completion of the plant startup requirements, Sharps is planning for product deliveries to begin late in the second quarter of 2025 with revenue expected to total more than $35 million for the first twelve months of sales.

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 $35 million and the will be an assumption of certain related liabilities of up to $4 million. The plant is a new state-of-the-art facility with fully automated syringe system manufacturing, packaging, and distribution in West Columbia, South Carolina. Once complete, this advanced facility will be the only fully dedicated COC prefillable syringe manufacturing plant in North America, designed with innovative manufacturing capabilities to produce specialty syringe systems. The closing of the acquisition has been approved by BlackRock, the seller’s senior lender. It will also be supported through a major investment from a strategic partner, and is expected to close within the next 60 days. However, there can be no assurance that the acquisition will be completed, and the Sales Agreement is subject to the closing of the acquisition of the assets.

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. 

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