Management will host a conference call at 4:30 P.M. ET on the same day LANGHORNE, Pa., March 25, 2026 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced it will report its financial results for the fourth quarter and full year ended December 31, 2025, after the market close on March 31, ...

Core Viewpoint - NEXGEL, Inc. has announced a significant transaction to license and acquire a portfolio of regenerative biomaterial products from Celularity Inc., which is expected to triple its annual revenue and make the company immediately profitable upon closing [1][2]. Financial Considerations - The transaction includes a $15 million upfront cash payment and potential milestone payments of up to $20 million based on net sales targets related to the portfolio [1][5]. - This deal is anticipated to significantly enhance NEXGEL's revenue base, projecting annual revenue to reach approximately $35 million [1][2]. Product Portfolio - The acquired portfolio consists of six established regenerative biomaterial products focused on tendon repair, skin grafts, and bone growth, all of which have over a decade of clinical use and existing insurance reimbursement pathways [3]. - The transaction is expected to bring an experienced commercial and scientific team to NEXGEL, thereby expanding the company's capabilities in the medical technology sector [3]. Company Background - NEXGEL is a provider of healthcare, beauty, and over-the-counter products, specializing in ultra-gentle, high-water-content hydrogel products for various applications [6]. - The company has been developing and manufacturing electron-beam, cross-linked hydrogels for over two decades and has established brands such as SilverSeal and Hexagels [6].

Core Insights - Celularity Inc. has announced a strategic commercialization partnership with NEXGEL, Inc. to leverage regulatory clarity around placental-derived biomaterials and enhance sales and market share, with the transaction expected to close by April 15, 2026 [1][4] Company Overview - Celularity Inc. focuses on regenerative and cellular medicine, developing therapies from postpartum placenta to target aging and age-related diseases [3] Partnership Details - The partnership allows Celularity to concentrate on contract manufacturing, where it has a proven track record in cost-efficient biomaterial production at a pharmaceutical-grade level [2] - NEXGEL is identified as an ideal partner due to its disciplined approach and ability to drive market growth across various industry verticals [2] Product and Manufacturing - Celularity will exclusively manufacture licensed products at its FDA-compliant facility in Florham Park, New Jersey, supporting scalable production for both commercial products and next-generation therapies [7] - The partnership includes established commercial products like Biovance and potential market disruptors from pipeline programs such as SPARK, FUSE, and ORCHID [7]

Core Insights - The transaction is expected to approximately triple NEXGEL's annual revenue to about $35 million and make the Company immediately profitable upon closing [1][7] - NEXGEL is acquiring a diversified suite of 6 established regenerative biomaterial products, most with existing insurance reimbursement, along with three new product 510(k) filings planned for 2026, 2027, and 2028 [1][2] - An experienced commercial team is expected to join NEXGEL, significantly expanding the Company's sales reach and operational capabilities [1][2] Financial Impact - The transaction represents a significant milestone in NEXGEL's history, expected to triple its revenue base and establish immediate profitability [1][7] - The Company anticipates closing on approximately $14.9 million in additional financing during the first quarter of 2026 or early in the second quarter of 2026 [3] Product Portfolio - The portfolio includes 6 commercial-stage regenerative biomaterial products focused on tendon repair, skin grafts, and bone growth, all within the rapidly growing regenerative biomaterials market [2][7] - These products have over a decade of clinical use and demonstrated clinical utility, providing a stable and diversified revenue foundation [2][7] Strategic Rationale - The acquisition is seen as a transformative moment for NEXGEL, positioning it as a growing force in medical technology with established products and strong reimbursement dynamics [6][8] - The transaction allows for strategic synergies by combining and scaling complementary biomaterials and hydrogel technologies across multiple industry verticals [7][8] Team and Expertise - An accomplished commercial and scientific team is expected to join NEXGEL, significantly enhancing the Company's sales organization and domain expertise in regenerative biomaterials [7][8]

Core Insights - NexGel expects to nearly triple its annual revenue to approximately $35 million by 2026, marking a significant milestone in the company's history and leading to immediate profitability [3][5] - The transaction includes six commercial-stage regenerative biomaterial products that have demonstrated clinical utility and have established insurance reimbursement pathways, providing a stable revenue base [3][4] - The company plans to file three additional 510(k) applications in 2026, 2027, and 2028, indicating a visible pipeline for future growth [4] Financial Overview - NexGel anticipates closing on about $14.9 million in additional financing in early 2026, following a previously announced financing of approximately $1.8 million [2] - The company's stock price increased by 6.19% to $1.19 during premarket trading, reflecting positive market sentiment regarding the transaction [5] Strategic Developments - The acquisition creates opportunities to scale complementary biomaterials and hydrogel technologies across various sectors, potentially expanding sales [4] - A spin-off of select drug delivery application assets received strategic investments, indicating ongoing strategic realignment and investment interest [5]

Core Viewpoint - NEXGEL, Inc. has announced a financing of $1.797 million for a potential acquisition targeted for the first quarter of 2026, pending due diligence completion [1][2]. Group 1: Financing and Acquisition Details - The financing includes an upfront commitment of $1.797 million from an investor, with a potential additional investment of $14.869 million related to the acquisition, subject to due diligence and other conditions [2]. - The funds will be returned to the investor if the acquisition is not completed [1]. - Palladium Capital Group, LLC acted as the placement agent for this transaction [2]. Group 2: Company Overview - NEXGEL is a provider of healthcare, beauty, and over-the-counter products, specializing in ultra-gentle, high-water-content hydrogel products [4]. - The company has over two decades of experience in developing and manufacturing electron-beam, cross-linked hydrogels [4]. - NEXGEL's brands include SilverSeal, Hexagels, Turfguard, Kenkoderm, and Silly George, and it has strategic manufacturing relationships with leading consumer healthcare companies [4].

Core Insights - NEXGEL, Inc. has announced a strategic investment in its spin-off NexGelRx from Eric Gruntfest and Ariel Imas of Diesis Holdings, LLC, which will enhance its drug delivery application assets [1] - Mr. Gruntfest has been appointed as a board observer and advisor for NexGelRx, bringing over 20 years of experience in reimbursement strategy and healthcare commercialization [2] - The CEO of NexGelRx, Richard Myers, expressed confidence that Mr. Gruntfest's insights will provide a new perspective and strengthen the company's stakeholder base [3] Company Overview - NEXGEL is a provider of healthcare, beauty, and over-the-counter products, specializing in ultra-gentle, high-water-content hydrogel products for various applications [3] - The company has been developing and manufacturing electron-beam, cross-linked hydrogels for over two decades and has established brands such as SilverSeal, Hexagels, Turfguard, Kenkoderm, and Silly George [3] - NEXGEL maintains strategic contract manufacturing relationships with leading consumer healthcare companies, positioning itself strongly in the market [3]

Core Viewpoint - NEXGEL is spinning off select drug delivery application assets into a new entity, NexGelRx, which will focus on developing prescription drug delivery solutions using NEXGEL's proprietary hydrogel technology [1][3] Group 1: Spin-off Details - NEXGEL shareholders will receive a non-dilutive 19.99% equity interest in NexGelRx, along with up to $8 million of capital investment [1][2] - NEXGEL will also receive a 5% global royalty in perpetuity on products sold using its drug delivery technology [1][2] Group 2: Management and Strategic Focus - Adam Levy, CEO of NEXGEL, emphasized that the spin-off allows the company to pursue high-value prescription opportunities while maintaining focus on contract manufacturing and consumer products [3] - Dr. Jerome Zeldis, a director of both NEXGEL and NexGelRx, highlighted the potential of the hydrogel technology to create new therapies and enhance existing treatments [3] Group 3: Company Background - NEXGEL is a provider of healthcare, beauty, and OTC products, specializing in high-water-content hydrogel products for various applications [4] - The company has over two decades of experience in developing and manufacturing electron-beam, cross-linked hydrogels [4]

Revenue Performance - Revenue for Q3 2025 was $2.93 million, a slight decrease of 0.20% compared to $2.94 million in Q3 2024[5] - Revenues for the three months ended September 30, 2025, were $2,934 million, a slight decrease from $2,940 million in the same period of 2024[22] Profitability Metrics - Gross profit increased to $1.24 million in Q3 2025, up from $1.16 million in Q3 2024, resulting in a gross profit margin of 42.4% compared to 39.3% in the prior year[7][12] - Gross profit for the nine months ended September 30, 2025, was $3,690 million, compared to $1,674 million for the same period in 2024, indicating a significant increase[22] - Net loss attributable to NEXGEL stockholders narrowed to $0.65 million in Q3 2025 from a loss of $0.69 million in Q3 2024[9][12] - Net loss attributable to NexGel stockholders for the nine months ended September 30, 2025, was $2,030 million, an improvement from a net loss of $2,431 million in 2024[26] - Adjusted EBITDA remained stable at ($0.35) million for Q3 2025, consistent with Q3 2024[9][12] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(1,275) million, compared to $(1,804) million in 2024, showing a reduction in losses[26] Cash and Assets - Cash balance as of September 30, 2025, was approximately $938 thousand, with an additional $920 thousand in restricted cash[10] - Cash and cash equivalents at the end of the period were $938 million, down from $1,059 million in 2024[24] - Total assets increased to $11.62 million as of September 30, 2025, compared to $10.98 million at the end of 2024[20] Expenses - Selling, general and administrative expenses increased slightly to $1.96 million in Q3 2025 from $1.94 million in Q3 2024, driven by higher compensation and consulting fees[8] - Total operating expenses for the nine months ended September 30, 2025, were $5,828 million, up from $4,387 million in 2024[22] - Research and development expenses for the three months ended September 30, 2025, were $7 million, compared to $0 in the same period of 2024[22] Operational Insights - The company reported stable revenue in contract manufacturing and branded products, indicating market confidence in its hydrogel technology[4] - The company is focused on expanding its innovative products across both contract manufacturing and consumer brands businesses[4] - NEXGEL has strategic partnerships with leading consumer healthcare companies, enhancing its market position[15] Cash Flow and Interest - The company reported a net cash used in operating activities of $1,592 million for the nine months ended September 30, 2025, an improvement from $3,008 million in 2024[24] - Interest expense, net for the nine months ended September 30, 2025, was $32 million, down from $65 million in 2024[26] Share Metrics - The weighted average shares used in computing net loss per common share - basic for the three months ended September 30, 2025, were 7,971,299, compared to 6,569,403 in 2024[22]

Revenue and Profit - For the three months ended September 30, 2025, revenues were $2,934, a decrease of $6 or 0.20% compared to $2,940 for the same period in 2024[187]. - Gross profit for the three months ended September 30, 2025 was $1,243, an increase of $88 from $1,155 in 2024, resulting in a gross profit margin of 42.4% compared to 39.2% in 2024[188]. - Revenues for the nine months ended September 30, 2025 were $8,625, an increase of $2,978 or 52.7% compared to $5,647 for the same period in 2024, driven by sales growth in branded consumer products[197]. - Gross profit for the nine months ended September 30, 2025 was $3,690, an increase of $2,016 from $1,674 in 2024, with a gross profit margin of approximately 42.8% compared to 29.6% in 2024[198]. Costs and Expenses - Total cost of revenues decreased by $94 or 5.2% to $1,691 for the three months ended September 30, 2025, primarily due to a decrease in depreciation and amortization expense[189]. - Cost of revenues increased by $962, or 24.2%, to $4,935 for the nine months ended September 30, 2025, compared to $3,973 for the same period in 2024[200]. - Selling, general, and administrative expenses rose by $1,511, or 35.1%, to $5,820 for the nine months ended September 30, 2025, from $4,309 in the prior year[201]. - Compensation and benefits increased by $167 or 69.9% to $406 for the three months ended September 30, 2025, reflecting an increase in the number of employees and officer compensation[191]. - Compensation and benefits increased by $406, or 54.6%, to $1,149 for the nine months ended September 30, 2025, compared to $743 for the same period in 2024[202]. - Research and development expenses were $7 for the three months ended September 30, 2025, compared to $0 in 2024, indicating an increase in investment in innovation[196]. - Research and development expenses decreased by $70, or 89.7%, to $8 for the nine months ended September 30, 2025, from $78 in the prior year[209]. - Share-based compensation rose by $57 or 39.8% to $200 for the three months ended September 30, 2025, due to the issuance of stock options and restricted awards[192]. - Advertising, marketing, and Amazon fees decreased by $170 or 20.7% to $650 for the three months ended September 30, 2025, as part of a strategy to optimize advertising spend[193]. - Professional and consulting fees increased by $45 or 12.0% to $420 for the three months ended September 30, 2025, due to ongoing public company governance requirements[195]. Cash Flow and Financial Position - Net cash used in operating activities was $1,592 for the nine months ended September 30, 2025, an improvement from $3,008 in the same period of 2024[212]. - Cash and cash equivalents at the end of the quarter were $1,858, compared to $1,059 at the end of September 30, 2024[212]. - Current assets totaled $5,602 and current liabilities totaled $3,308 as of September 30, 2025, resulting in working capital of $2,294[216]. Strategic Plans and Outlook - The company plans to explore new product channel sales in cosmetics, athletic products, and proprietary medical devices[218]. - The August Financing provided necessary working capital to continue strategic objectives, including the development of consumer products and proprietary medical devices[219]. - The company expects to continue incurring losses in the near term, with future operations dependent on managing and growing current products[220].