-- Two additional patient support programs with pharmaceutical manufacturers now under contract
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-- Additional Sales Opportunities driven by success of programs and legislation
HOUSTON, Oct. 1 /PRNewswire-FirstCall/ -- Sharps Compliance Corp. (OTC Bulletin Board: SCOM) ("Sharps" or the "Company"), a leading provider of cost-effective disposal solutions for small quantity generators of medical waste, today provided an update on its new contracts and continued success in the pharmaceutical manufacturing market.
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Renewal of Top Ten Pharmaceutical Manufacturer Patient Support Program
The Company's first contract with a top ten pharmaceutical manufacturer was recently renewed through fiscal year 2009. The original contract was awarded in March of 2006 and kicked off the Company's first Patient Support Program. The Company expects billings of about $800,000 to be reflected in the quarter ended September 30, 2008. Additionally, the Company expects an additional $900,000 to be billed during the second half of the Company's fiscal year 2009 (six months ended June 30, 2009).
The Patient Support Program includes the direct fulfillment of the Sharps Disposal By Mail System(R) to the pharmaceutical manufacturers' patients, who use the product as a convenient means of used syringe disposal for their self-injecting patients. Sharp's proprietary SharpsTracer(TM) system is used to track the return of the Sharps Disposal By Mail System(R) by the patient to the treatment facility, where the package is scanned and weighed prior to destruction. This data, managed in Sharps' proprietary SharpsTracer(TM) system, is electronically transmitted to the pharmaceutical manufacturer which assists them in monitoring drug usage and provides a touch point for individual patient follow-up.
Two Additional Pharmaceutical Manufacturer Patient Support Programs
The Company has also entered into contracts with two additional pharmaceutical manufacturers to implement Patient Support Programs using the Sharps Disposal By Mail System(R). One of the programs involves the implementation of the Sharps Disposal By Mail System(R) in conjunction with the launching of a self-injected drug recently approved for a new indication. The programs are expected to be launched by December 31, 2008 and generate initial program billings of approximately $100,000 for the quarter ended September 30, 2008 and approximately $300,000 for the quarter ended December 31, 2008.
Dr. Burton J. Kunik, Chairman, Chief Executive Officer and President of Sharps Compliance, commented, "We believe our success fulfilling products and services for our first contract with a top ten pharmaceutical manufacturer, as well as its fully-integrated capabilities, were differentiating factors leading to the contracting of the second and third Patient Support Programs."
Update on California Senate Bill 1305 and Other Legislation
California Senate Bill 1305 requires the proper disposal of home-generated sharps waste (syringes, needles, lancets, etc.) beginning September 1, 2008, and acknowledges mail-back programs as one of the most convenient alternatives for the collection and destruction of home-generated sharps. The law is designed to protect the general public and workers from potential exposure to contagious diseases as well as health and safety risks when improperly disposed biohazard waste enters the public waste stream.
The California legislation is having a positive impact on sales opportunities in virtually all markets, particularly pharmaceutical manufacturing and hospitality where the value proposition of the Sharps Disposal By Mail Systems(R) is viewed as an integral component to compliance with the state law.
About Sharps Compliance Corp.
Headquartered in Houston, Texas, Sharps Compliance is a leading provider of cost-effective disposal solutions for small quantity generators of medical waste and unused pharmaceuticals. The Company's flagship product, the Sharps Disposal by Mail System(R), is a cost-effective and easy-to-use solution to dispose of medical waste such as hypodermic needles, lancets and any other medical device or objects used to puncture or lacerate the skin (referred to as "sharps"). The Company also offers a number of products specifically designed for the home healthcare market and products for the safe disposal of unused pharmaceuticals, RxTakeAway(TM). Sharps Compliance focuses on targeted growth markets such as the pharmaceutical, retail, commercial, and hospitality markets, as well as serving a variety of additional markets. Sharps is a leading proponent and participant in the development of public awareness and solutions for the safe disposal of needles, syringes and other sharps in the community setting.
As a fully integrated manufacturer providing customer solutions and services, Sharps Compliance's solid business model, with strong margins and significant operating leverage, and early penetration into emerging markets, uniquely positions the company for strong future growth.
More information on Sharps Compliance can be found on its website at: www.sharpsinc.com.
Safe Harbor Statement
The information made available in this press release contains certain forward-looking statements which reflect Sharps Compliance Corp.'s current view of future events and financial performance. Wherever used, the words "estimate", "expect", "plan", "anticipate", "believe", "may" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, the company's ability to educate its customers, development of public awareness programs to educate the identified consumer, customer preferences, the Company's ability to scale the business and manage its growth, the degree of success the Company has at gaining more large customer contracts, managing regulatory compliance and/or other factors that may be described in the company's annual report on Form 10-K, quarterly reports on Form 10-Q and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results express or implied therein will not be realized.
For more information contact: David P. Tusa Executive Vice President, Chief Financial Officer & Business Development Phone: (713) 660-3514 [email protected] - OR - Tammy Poblete Kei Advisors LLC Investor Relations Phone: (716) 843-3853 Email: [email protected]
SOURCE Sharps Compliance Corp.
