Flexible Solutions announces acquisition of production line for vial filling

FLEXIBLE SOLUTIONS INTERNATIONAL announces the acquisition of a production line capable of filling large numbers of vials with injectable drugs. The CAPEX disclosed in this news release is material. Furthermore, the Company believes that it should disclose FSI‘s potential advancement into drug compounding operations in order to prevent accidental partial disclosure during the course of investigations and due diligence in the business of sterile drug compounding. FSI has progressed from good manufacturing practice to food grade certification and production over the last 3 years. The next, relatively small, step of certification is advancing to a 503B sterile drug compounding clean room. The company said, “FSI has identified a very large revenue and profit opportunity in injectable diabetes/weight loss drugs. These drugs and many others are in short supply. If possible, we would like to expand into this market. This does not mean that we will, only that we see it as the most profitable expansion of our business that might become accessible in the next several years. Diabetes/weight loss drugs represent a market place of many tens of billions, dominated by major drug companies, but still with transformational revenue streams available to small companies like FSI. Clean room production of injectable drugs requires a fully automated production line. Currently, wait times for such lines are in the range of 18 months and the cost for a line capable of 150 vials per minute is $13 – $15M. As part of our due diligence in this business, FSI found a complete, nearly unused line of this size for $2.5M. Because this represented a saving of $10M or more and a saving of many months – should we decide to expand – we bought it and take possession in July. This purchase is the CAPEX announced by this news release. This production line can only realistically operate a maximum of 10 hours a day 250 days a year using two shifts. Even so, this represents 22.5M vials per year. Once again, we caution you that the purchase of this line, combined with our skill set and a market need for more injectable drugs, does not mean that this project will proceed. It’s an option; not a given. Management will continue its diligence program and only move forward if the reasonably expected reward to the shareholders is judged to be far higher than the risk.”