Sharps Technology (NASDAQ: STSS) stock plummeted during pre-market trading Friday despite securing a lucrative 5-year, $200 million syringe sales deal with Nephron Pharmaceuticals.
The deal, considered a substantial milestone for Sharps Technology, aligns seamlessly with its recent acquisition of InjectEZ specialty syringe manufacturing assets in West Columbia, South Carolina. This strategic move positions the facility as the only fully dedicated, specialized COC (cyclic olefin copolymer) pre-fillable syringe manufacturing plant in North America. Equipped with innovative manufacturing capabilities, the facility is primed to cater to the high-demand market for specialty syringe systems.
The company plans to begin delivering the product under the agreement in the late second quarter of 2025, expecting to generate approximately $37 million in revenue during the initial 12 months of sales.
Robert Hayes, CEO of Sharps Technology, expressed enthusiasm about the deal, highlighting its significance in driving the company’s short and long-term revenue growth. Hayes emphasized that the transaction allows Sharps Technology to penetrate the highly profitable copolymer pre-fillable syringe market segment, experiencing the highest growth rate in the syringe marketplace. He underscored the potential for substantial revenue acceleration, which will enable the company to achieve a new level of performance and deliver value to patients and shareholders.
Sharps Technology (NASDAQ: STSS) Stock Price Action
As of 07:50 a.m. (Eastern Time) Friday, STSS stock traded at $0.44, marking a 7.21% decrease compared to the previous trading session.
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