NASDAQ: STSS
Company Overview
Research Profile Company Website
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 US. A transformative asset acquisition of Nephron’s InjectEZ facility in South Carolina and related 10-year $400 million purchase agreement with Nephron place Sharps Technology on a clear path for rapid growth.
Value Proposition
Sharps Technology recently signed an Asset Purchase Agreement to acquire Nephron Pharmaceutical's InjectEZ facility, marking a significant transition towards commercialization in early 2024. The agreement includes a $400 million, 10-year purchase agreement with Nephron, promising a robust revenue stream for Sharps that is expected to generate $35 million revenue in 2024. The InjectEZ acquisition will enable Sharps to meet Nephron's prefilled syringe needs while providing additional capacity to meet current projections for additional business from the open healthcare market for 2024 through 2026. This state-of-the-art facility is one of North America's only specialized copolymer pre-filled syringe manufacturing plants. The Company has secured a term sheet for up to $75 million in debt financing from a leading middle-market lender to fund the InjectEZ acquisition, non-dilutive working capital, and facility enhancements. With a clear path to significant revenue growth and near-term profitability, Sharps represents a compelling opportunity for fast-acting investors. Aegis Capital reiterated its Buy rating and $16 price target on Sharps Technology in November 2023, citing its emergence as a commercial entity and expectations for sustained profitability in 2024.
Multi-Billion-Dollar Market Opportunity
Market Data
Investment Highlights
- Strong product line of patented smart safety syringe systems
- Products are FDA, WHO, and CE Mark approved and cleared for use by Pfizer and Moderna
- New prefilled syringe systems launching in Q4 2023
- Signed $50 million asset purchase agreement to acquire InjectEZ
manufacturing facility in September 2023
- State-of-the-art facility with fully automated syringe system manufacturing, packaging, and distribution in West Columbia, SC
- Strengthens manufacturing capacity and allows Sharps to serve the broader healthcare market
- With full control of the facility, Sharps has the ability to increase capacity for future growth
- Signed term sheet providing for up to $75 million in debt financing to be used for the acquisition
- Nephron collaboration accelerates near-term revenue growth
- 10-year $400 million purchase agreement
- Nephron committed to purchase $30 million of product in the first 12 months (beginning in Q1 2024) and $45 million annually in subsequent years
- Clear path to profitability over next 12-18 months
- Scaling vial-drawn manufacturing to 200 million units in 2024, up from 50 million in 2023
- Large and growing markets with unmet need
- Global smart syringe market projected to reach $11 billion by 2030; prefilled syringe market forecasted to reach $18.6 billion by 2030
- Strong management team with extensive experience in drug delivery manufacturing and product development
