1. NEXGEL spun off drug delivery assets into NexGelRx, retaining 19.99% equity. 2. NEXGEL will receive a 5% royalty on products from NexGelRx indefinitely. 3. CEO Adam Levy highlights potential ROI for shareholders from NexGelRx. 4. NEXGEL focuses on contract manufacturing while NexGelRx targets Rx drug delivery. 5. Dr. Jerome Zeldis emphasizes new therapeutic opportunities from their hydrogel technology.
FAQ
Why Bullish?
The spin-off and retained equity stake suggest increased future value. Historical precedents show that successful spin-offs can lead to significant stock appreciation.
How important is it?
The article details strategic corporate actions that could drive long-term growth, thereby impacting stock value. The establishment of NexGelRx allows NEXGEL to leverage its technology without directly funding the new initiatives.
Why Long Term?
While immediate effects may be muted, the long-term potential from royalty and equity can drive value growth. Successful commercialization of hydrogel technology may take time but promises substantial future benefits.
NEXGEL Announces Spin-Off of Drug Delivery Program into NexGelRx
LANGHORNE, Pa., Dec. 11, 2025 – NEXGEL, Inc. (NASDAQ: NXGL), a prominent player in the healthcare and beauty industries, has unveiled plans for a strategic spin-off. The Company will transfer select drug delivery application assets into NexGelRx, a newly established entity dedicated to developing and commercializing prescription drug delivery solutions utilizing NEXGEL's proprietary hydrogel technology.
Details of the Spin-Off
As part of this transaction, NEXGEL shareholders will receive a generous 19.99% equity stake in NexGelRx—making this a non-dilutive investment opportunity for current shareholders. Additionally, NEXGEL will benefit from a 5% global royalty on products that utilize its hydrogel technology, continuing in perpetuity.
The spin-off is accompanied by an initial funding round, raising up to $8 million from outside investors, which will support NexGelRx's mission in the pharmaceutical sector. Importantly, NEXGEL will maintain exclusive rights as the manufacturer of hydrogel products for this new entity.
Implications for Shareholders and the Market
Adam Levy, CEO of NEXGEL, expressed optimism regarding the spin-off, stating, “This spin-off provides potential return on investment for our shareholders through a dedicated team and platform to pursue high-value Rx opportunities. NEXGEL is committed to focusing on our core manufacturing and consumer-branded products.” He emphasized the capacity to unlock significant value without requiring additional funding from NEXGEL itself.
Expert Insights
Dr. Jerome Zeldis, a director at NEXGEL and NexGelRx, has extensive experience in pharmaceutical development, with ten successful product launches to his credit. He remarked, “I am very pleased that NexGelRx will be focusing on this technology. This innovation could lead to transformative therapies that complement or enhance existing treatment options.”
About NEXGEL, Inc.
NEXGEL is renowned for its high-water-content hydrogel products used across healthcare and consumer applications. Established in Langhorne, Pennsylvania, the Company has honed its expertise in developing electron-beam, cross-linked hydrogels for over twenty years. The brand portfolio includes well-known names such as SilverSeal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George®.
Furthermore, NEXGEL maintains strategic partnerships with leading consumer healthcare companies, positioning itself as a key player in the market.
Forward-Looking Statements
This announcement may contain “forward-looking statements” as defined under applicable securities laws. NEXGEL cautions that actual results may differ due to various factors, including market conditions and operational risks. Stakeholders should refer to the Company’s Annual Report on Form 10-K for a detailed discussion of risk factors impacting the Company’s performance.
Contact Information
For additional information, please reach out to:
Valter Pinto, Managing Director
KCSA Strategic Communications
Phone: 212.896.1254
Email: Nexgel@KCSA.com