Sharps Technology secures SC asset purchase exclusivity with $1M escrow deposit

Sharps has transferred a $1 million escrow deposit for the exclusive rights to purchase the InjectEZ assets from Nephron Pharmaceuticals in West Columbia, South Carolina. Sharps Technology recently signed the Asset Purchase Agreement and an accompanying five-year, $200 million syringe Sales Agreement with Nephron. Through these agreements that are expected to close within the next 60 days, although there can be no assurance, Sharps will become the first fully dedicated, specialized polymer prefillable syringe manufacturing plant in North America. The state-of-the-art syringe facility will be on track to begin product deliveries in the second quarter of 2025, with projected revenue expected to exceed $35 million for the first 12 months of sales. Once the asset acquisition is closed, expected within 60 days, Sharps intends to immediately ramp-up the first phase of its manufacturing implementation plan and bring a new strategic partner into the fold. The initial phase of the plan includes the final facility buildout and upgrades to support the manufacture of pharmaceutical grade COC prefillable syringes on three state-of-the-art production lines. Product from the first line are expected to be qualified to ship early in the second quarter of 2025, and all three lines are expected to produce saleable product by the fourth quarter of 2025. The second and third manufacturing phases are planned to be completed by October 2027, and the three manufacturing expansions will be completed within the facility as it exists today. The five-year, $200 million sales agreement included in the deal with Nephron provides for their purchase of Sharps’ next-generation copolymer prefillable syringes manufactured at the SC plant as well as the qualification of the 10mL SoloGard polypropylene disposable syringes produced at Sharps’ Hungary facility that is expected to support future purchases. Sharps has also been developing other copolymer prefillable syringe sales opportunities by collaborating with several Fortune 500 medical product distributors, branded and generic pharma industry leaders, and companies in the rapidly expanding GLP-1 market. The execution of sample trials and the required qualification work for these healthcare customers is expected to begin around the middle of the first phase of Sharps manufacturing implementation to support shipping product to the market beginning early in the second quarter of 2025.