NEXGEL Announces Spin-Off of Drug Delivery Program into NexGelRx

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]