Sharps Technology Signs Sales Agreements to Support Major European Healthcare Network and Sells Out Its Inventory for SecureGard

Rhea-AI Summary

Sharps Technology (NASDAQ: STSS) has signed multiple sales agreements for its SecureGard safety syringes with a major European medical supply company serving Poland, Slovakia, and the Czech Republic. The company has begun deliveries of 1mL and 3mL SecureGard syringes, with the customer committing to purchase all available plant inventory by Q1 2025 and new production orders starting in Q2 2025.

The agreements will utilize all current SecureGard production capacity of 35 million units at the Hungary manufacturing facility. The customer has also shown interest in Sharps' U.S. inventory for Northern Africa markets. In response to growing demand, Sharps is planning to expand its manufacturing capacity to over 100 million units for SecureGard and 125 million units for SoloGard annually.

Positive

• Secured sales agreements for entire SecureGard inventory with major European healthcare supplier
• Customer committed to purchasing all available production capacity of 35 million units
• Planned expansion to increase production capacity to over 100M SecureGard and 125M SoloGard units annually
• Additional market opportunity identified in Northern Africa

Negative

• None.

Insights

Financial Analyst

The sales agreements represent a significant milestone for Sharps Technology, signaling strong market validation for their SecureGard product line. The deal structure includes immediate revenue generation starting December 2024 and extends through Q2 2025, with commitments for the entire 35 million unit production capacity at the Hungary facility. The planned expansion to increase SecureGard capacity to 100+ million units and SoloGard to 125+ million units annually demonstrates substantial growth potential. For a micro-cap company with a market cap of just $3.5 million, securing contracts that consume full production capacity and warrant expansion plans could significantly impact revenue growth and market position. The strategic focus on the Central and Eastern European healthcare market, plus potential expansion into Northern Africa, provides diverse revenue streams and market penetration opportunities.

Medical Device Industry Expert

The demand for Sharps Technology's safety syringes reflects the growing importance of specialized drug delivery systems in healthcare. Their focus on low waste and ultra-low waste technologies with active safety features aligns perfectly with current market needs, particularly for high-value biologics and specialty medications. The rapid inventory sell-through and customer commitment to future production indicate strong product-market fit. The expansion into multiple European markets through a major healthcare network provides significant validation of their technology. The timing is particularly strategic as the injectable drug delivery market continues to grow with the rise of biologics, vaccines and new therapeutic categories like GLP-1 weight loss drugs. This positions Sharps Technology to capitalize on multiple high-growth segments within the medical device market.

• Signed multiple agreements to sell its SecureGard syringe inventory, with initial shipments and revenue commencing in early December
  
• Agreements also include new forecasted orders and commitments for all current SecureGard capacity, to begin in Q2 2025
  
• The SecureGard agreements will strengthen the potential revenue curve for the Hungary Operation starting in 2024
  

NEW YORK, Dec. 05, 2024 (GLOBE NEWSWIRE) -- Sharps Technology, Inc. (NASDAQ: “STSS” and “STSSW”), an innovative medical device and pharmaceutical packaging company offering patented, best-in-class syringe products, has begun deliveries of its 1mL and 3mL SecureGard safety syringes under the new sales agreements with a prominent European medical supply company serving Poland, Slovakia, and the Czech Republic. To meet demand in the region, Sharps’ customer has requested additional deliveries by year-end 2024 and committed to purchasing all available plant inventory by Q1 2025.

As a supplier to the largest network of hospitals and outpatient clinics in Central and Eastern Europe, the customer plans to purchase Sharps’ entire existing inventory of 1mL and 3mL SecureGard inventory warehoused in Hungary. This would be followed by new production orders starting in Q2 2025. These orders will consume all currently available SecureGard production capacity of 35 million units at the Hungary manufacturing facility. The customer has also expressed interest in Sharps’ U.S. inventory to fulfill a need for safety syringe supplies in Northern Africa.

The demand for Sharps’ innovative injection solutions continues to grow rapidly, with injectables remaining the preferred delivery method for therapies such as vaccines, biologics, weight loss and maintenance, ophthalmic and cosmetic applications, gene therapies, and diabetes and inflammatory disease management. With increasing levels of interest and potential demand for the Company’s high-quality smart safety syringe products in the region, Sharps is collaborating with both government and private investment sources in Hungary to expand the current manufacturing footprint and take advantage of the need to increase both SecureGard and SoloGard manufacturing capacity. The expansion will be planned to increase the annual SecureGard capacity to more than 100 million units, and the SoloGard capacity to more than 125 million units.

Sharps’ SecureGard and SoloGard product lines focus on low waste and ultra-low waste syringe technologies that also incorporate active safety features to fill the healthcare industry’s demand for the highest quality drug delivery solutions.

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. For more information, please visit http://sharpstechnology.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.

Investor Relations:
Dave Gentry
RedChip Companies, Inc.
1-800-RED-CHIP (733-2447)
Or 407-644-4256
STSS@redchip.com

FAQ

What is the production capacity of STSS's Hungary facility for SecureGard syringes?

The current SecureGard production capacity at Sharps Technology's Hungary manufacturing facility is 35 million units.

When will STSS begin new production orders for SecureGard syringes?

New production orders for SecureGard syringes will begin in Q2 2025.

What is the planned production capacity expansion for STSS's SecureGard and SoloGard products?

Sharps Technology plans to expand annual capacity to over 100 million units for SecureGard and over 125 million units for SoloGard.

Which European countries will receive STSS's SecureGard syringes under the new agreements?

The SecureGard syringes will be supplied to Poland, Slovakia, and the Czech Republic through a major European medical supply company.