"The expansion will allow Prince to more than double its headcount, increase manufacturing capacity, and offer additional ready-to-use products and sterilization services to the market."
How did 2022 unfold for Prince Sterilization Services?
Prince is a critical manufacturer in the supply chain of pharmaceutical wares that must meet stringent regulatory quality requirements. 2022 was a terrific year for us: We had the grand opening of our facility in Pine Brook, NJ, our revenue grew by 55%, and we transitioned from a small to a medium firm. The facility work included a US$25 million and 25,500 sq/ft renovation and expansion. This expansion will allow Prince to more than double its headcount, increase manufacturing capacity, and offer additional ready-to-use products and sterilization services to the market, ultimately allowing us to better support our global network of pharmaceutical and medical device customers. We won the Small Manufacturer of the Year award from the New Jersey Manufacturing and Extension Program, and we are pleased to also share that Prince Sterilization was just selected as an ACG NJ 2023 Honoree.
Can you present Sterikit and the market demand for the product?
SteriKit is a sterile, ready-to-use (RTU) kit containing pharmaceutical-grade vials, stoppers, and seals that are strategically packaged to drive customer efficiencies and reduce waste. The industry demand for RTU pharmaceutical components continues to grow. With the continued global rise in labor and utility costs, companies are now more than ever strategically looking at options to streamline their manufacturing output by focusing their attention on core competencies. Finally, the recent growth in the production of small-batch, personalized and high-value medicines, the adoption of advancements in filling equipment, and increased regulatory scrutiny all contribute to the increased adoption of RTU. The market is growing very fast for these reasons.
Can you expand on your latest sustainability and innovation investments?
In addition to our leadership and innovation within the RTU pharmaceutical componentry space, our company is also a leader in safe and environmentally friendly pharmaceutical and medical device sterilization. Today, we offer the market steam and dry heat sterilization options. We are excited to announce that in 2023 we will also be one of the first companies to offer contract hydrogen peroxide vapor sterilization for customers that require low-temperature sterilization options.
What are the trends likely to shape the sterilization market in 2023?
The global sterilization market has been growing steadily over the past few years, and several drivers have contributed to this growth. Governments around the world have implemented stringent regulations to ensure the safety and efficacy of medical devices and pharmaceutical products. These regulations require that products be sterilized before they can be used, creating a significant market for sterilization equipment and services. The increase in the number of surgeries being performed globally has led to a rise in demand for sterilization products and services. Surgical instruments and medical devices need to be sterilized before use to prevent infections, and this has created a significant market for sterilization equipment and services. The development of new and more effective sterilization technologies has also contributed to the growth of the global sterilization market. For example, low-temperature sterilization technologies, such as hydrogen peroxide gas plasma sterilization and ethylene oxide sterilization, have become increasingly popular due to their effectiveness and efficiency.
What will be the key priorities for Prince in 2023 and beyond?
We are going to be almost 10 times larger in terms of facility size, so managing growth will be key. Everything in our facility is custom, so we are now making sure that our equipment is validated and ready to go. We are at the beginning of executing the expansion. 2024-2025 will be about optimizing and looking at the next steps: a different line, a different continent, who knows? We plan to stage and manage growth to continue to provide quality and dependable services to our clients. We will enter into a limited number of capacity agreements that commit our facility to manufacture for our client an agreed volume of business over an agreed term. We will also continue to serve our Purchase Order-bound clients with our practice of agreed schedules and costs.