The emergence of Covid-19 has brought about a renewed emphasis on syringes, highlighting the significance of both their safety and minimal wastage. This increased focus has catapulted the market to a staggering worth of over $6 billion. In response, pharmaceutical and manufacturing firms are now turning their attention to innovative solutions such as pre-fillable syringes. These next-generation syringes incorporate enhanced features and advantages that contribute to reducing healthcare companies overall ownership costs. Enter Sharps Technology, a company aiming to meet the market demand and modernize syringe offerings through its range of polymer prefillable and ultra-low waste safety syringes. Since our last coverage of Sharps, the company has proven itself to be a compelling opportunity well worth a second look.
About the Company
Sharps Technology is a medical device and pharmaceutical packaging company specializing in the development and manufacturing of innovative drug delivery systems. The Company’s product lines focus on low waste and ultra-low waste syringe technologies, incorporating both passive and active safety features to protect healthcare workers and prevent needle reuse. With extensive expertise in specialized prefilled syringe systems and ready-to-use processing, Sharps Technology operates a manufacturing facility in Hungary and has partnered with Nephron Pharmaceuticals to expand their manufacturing capacity in the US. Its flagship product, the Sharps Securegard syringe, is an ultra-low waste syringe that reduces waste, prevents needlestick injuries, and addresses global concerns while maintaining the familiar design of traditional syringes. Established in 2017, Sharps Technology is committed to providing high-quality innovation for a safer future in healthcare.
A Solution to a Problem
The risk of accidental needlestick injuries and exposure to bloodborne pathogens is a pressing issue faced by healthcare workers, who administer over 16 billion injections annually worldwide. Recognizing this risk, the WHO and CDC have emphasized the need to eliminate needlestick injuries and promote the adoption of safety syringes. However, existing safety syringes often require complex activation mechanisms, leading to compliance barriers and a high rate of injuries due to failure to engage the safety features. These needlestick injuries have negative consequences, including infections, psychological trauma, and financial burdens on healthcare systems.
To address this crisis, Sharps Technology offers a solution with their innovative Sharps Provensa smart safety syringes. These syringes provide automatic protection against accidental needlestick injuries, prevent needle and syringe reuse through automatic locking mechanisms, and significantly reduce medication wastage. By offering complete protection and peace of mind to healthcare workers and the public, Sharps Provensa syringes aim to eliminate millions of potential infections and alleviate the financial strain on healthcare systems.
The Market
The global drug delivery systems market is projected to grow significantly, with a forecasted value of USD 71.75 billion by 2029, exhibiting a CAGR of 9.0%. Factors such as the increasing focus on COVID-19 vaccination drives, rising prevalence of chronic diseases, adoption of advanced drug delivery systems, and emerging technologies are driving market growth. Market players' strategies, including new product launches and collaborations, are expected to contribute to the market's expansion. The impact of COVID-19 has accelerated the production of injectable drug delivery systems and increased the demand for them. In 2021, the market witnessed a substantial growth rate of 26.2%. Specifically, the injectable segment is expected to have the highest growth rate, driven by the demand for wearable injectable systems and the increased need for syringes due to vaccination efforts. North America is anticipated to dominate the market, fueled by the U.S. government's COVID-19 vaccination initiatives and the rising demand for drug delivery systems in hospitals.
Growth Opportunity
Sharps made its initial public offering (IPO) in April 2022, issuing 3.75 million units of common stock at $4.25 per unit, generating approximately $16 million in proceeds. Since then, the Company has made great strides towards growth.
One of the reasons Sharps is poised for impressive growth is due to the introduction of its new specialized prefillable syringe systems in 2023. These high-value syringe systems, manufactured in collaboration with Nephron Pharmaceuticals, offer advantages over traditional glass syringe systems. By utilizing inert polymers like Cyclic Olefin Polymer (COP) and Cyclic Olefin Copolymer (COC), the polymer syringes provide similar characteristics to glass syringes but with improved quality, performance, and safety. The company's product pipeline includes various sizes, silicon-free systems to address contamination concerns, dual chamber systems to enhance drug shelf life, and customized solutions for the autoinjector segment.
The manufacturing and research partnership with Nephron Pharmaceuticals supports the production of these innovative syringe systems, with an initial manufacturing capacity of 20+ million units and the ability to scale up to 100 million units annually by 2025. With state-of-the-art injection molding technologies, automated assembly lines, and eco-friendly sterilization options, Sharps is well-positioned to cater to the growing demand for specialized syringe products in the USA. This expansion is expected to significantly accelerate the company's revenue growth in 2023 and beyond, offering a timely solution for the market's needs.
Final Thoughts
Sharps Technology Inc. presents an opportunity that warrants a second look. With the introduction of their specialized pre-fillable syringe systems in collaboration with Nephron Pharmaceuticals, the company is poised for impressive growth in 2023 and beyond. In addition, Sharps' broad product pipeline caters to the evolving needs of the healthcare market. The manufacturing partnership with Nephron Pharmaceuticals ensures efficient production capacity, with the ability to scale up to meet future demand. With a strong CEO leading the way and a strategic market approach, Sharps is well-positioned to capitalize on the growing demand for specialized syringe products. Investors should consider Sharps as an attractive investment opportunity with significant revenue growth potential in the coming years.
