NEXGEL Announces Spin-Off of Drug Delivery Program into NexGelRx
MWN-AI** Summary
NEXGEL, Inc. has announced a significant restructuring involving the spin-off of its drug delivery program into a new entity named NexGelRx. Shareholders of NEXGEL will receive a non-dilutive equity interest of 19.99% in NexGelRx, alongside a notable initial capital investment of up to $8 million aimed at supporting the new company. Furthermore, NEXGEL will retain a perpetual 5% royalty on all global sales of products developed by NexGelRx utilizing its proprietary hydrogel technology.
The spin-off is designed to concentrate on advancing prescription drug delivery solutions, capitalizing on NEXGEL's innovative hydrogel technology, which boasts high-water content and gentle properties suitable for various healthcare applications. In this strategic move, Adam Levy, CEO of NEXGEL, emphasized the potential for significant returns for shareholders through the dedicated focus on high-value opportunities in the prescription market, while ensuring that NEXGEL can maintain its operations in contract manufacturing and consumer product sectors.
Dr. Jerome Zeldis, a seasoned pharmaceutical executive, will play a dual role, serving as a director for both NEXGEL and its new counterpart, NexGelRx. Dr. Zeldis expressed optimism that the electron beam generated hydrogel may lead to not only innovative topical and systemic therapies but also new therapeutic modalities across diverse clinical areas.
Overall, this separation is expected to unlock additional value for NEXGEL's shareholders and strategically position NexGelRx in the burgeoning market for enhanced drug delivery solutions. As the company pursues opportunities within its focused framework, it remains dedicated to its core competencies in healthcare, beauty, and over-the-counter products, promising a future of exciting developments in the industry.
MWN-AI** Analysis
NEXGEL Inc.'s recent announcement regarding the spin-off of its drug delivery program into nexGelRx presents a potentially transformative opportunity for investors, reflecting a strategic pivot aimed at unlocking shareholder value. This separation focuses on the commercialization of NEXGEL's proprietary hydrogel technology for prescription drug delivery, an area ripe with growth potential.
The spin-off structures offer immediate benefits for existing shareholders, including a 19.99% non-dilutive equity interest in NexGelRx and up to $8 million of capital investment devoted to developing its drug delivery applications. In addition, NEXGEL will earn a 5% royalty on global sales of products developed through NexGelRx's initiatives, ensuring a consistent revenue stream that could significantly enhance profitability in the long run.
From a market perspective, the therapeutic applications of NEXGEL's hydrogel technology are vast, particularly in the pharmaceutical sector where there is a continuous demand for effective drug delivery systems. The involvement of seasoned industry professionals, such as Dr. Jerome Zeldis, lends credibility and expertise to NexGelRx's operations, increasing the likelihood of successful product development and market entry.
Investors should monitor NEXGEL's strategic execution closely, particularly in the early stages of the NexGelRx roll-out. Potential advancements in the hydrogel technology platform could lead to breakthrough therapies, offering transformative potential within various clinical contexts. The announcement made by CEO Adam Levy suggests a dual focus on continuing to enhance NEXGEL's core consumer products while allowing NexGelRx to pursue high-value prescription opportunities independently.
Given the promising indications of the hydrogel's efficacy and the potential market appetite for innovative drug delivery systems, NEXGEL shares might offer a compelling investment opportunity. However, as with any strategic pivot, there are inherent risks, and stakeholders should remain vigilant regarding market dynamics and execution efficacy. Investors may want to consider a balanced approach, weighing the growth potential against the uncertainties characteristic of biotechnology ventures.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
NEXGEL shareholders will receive a non-dilutive 19.99% equity interest in NexGelRx up to $8 million of capital investment in spin-off
NEXGEL will also receive a 5% global royalty in perpetuity on products sold using its drug delivery technology
LANGHORNE, Pa., Dec. 11, 2025 (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 the spin-off of select drug delivery application assets into NexGelRx, an entity which will focus exclusively on developing and commercializing prescription (Rx) drug delivery solutions utilizing NEXGEL’s proprietary hydrogel technology. At the time of the spin-off, NexGelRx also closed an initial funding from outside investors.
Under the terms of the license agreement, NEXGEL will receive a 5% royalty, in perpetuity, for the global rights to its technology for Rx drug delivery by NexGelRx. NEXGEL will also retain a 19.99% equity stake in NexGelRx, which is non-dilutive for up to $8 million of capital investment into NexGelRx. Nexgel will also be the exclusive manufacturer of hydrogel for NexGelRx.
Adam Levy, CEO of NEXGEL, commented, “There are multiple medical device drug delivery applications through our unique and proprietary hydrogel technology that has shown promising data to date. This spin-off provides potential return on investment for our shareholders through a dedicated team and platform to pursue high-value Rx opportunities while NEXGEL remains focused on contract manufacturing and consumer branded products in the health and beauty space. This transaction enables NEXGEL to pursue what we believe to be a potentially large opportunity without NEXGEL itself having to fund its development. We will continue to pursue opportunities to unlock value for our shareholders.”
Dr. Jerome Zeldis, who has helped bring 10 pharmaceuticals to market during his career, serves as a director of NEXGEL and will also serve as a director of NexGelRx, stated, “I am very pleased that NexGelRx will be focusing on this technology. The electron beam generated hydrogel lends itself to creating new topical and systemic therapies that can supplement existing therapies or create new ways to treat patients in a variety of clinical areas. The focus of using the hydrogel for drug delivery could lead to it becoming a platform for a family of useful and transformative therapies.”
About NEXGEL, Inc.
NEXGEL is 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. Based in Langhorne, Pa., the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. NEXGEL brands include SilverSeal ® , Hexagels ® , Turfguard ® , Kenkoderm ® and Silly George ® . Additionally, NEXGEL has strategic contract manufacturing relationships with leading consumer healthcare companies.
Forward-Looking Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “potential,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs, such as “will,” “should,” “lends,” “would,” “may,” and “could,” are generally forward-looking in nature and not historical facts, including, without limitation, the potential return on investment for our shareholders through a dedicated team and platform to pursue high-value Rx opportunities while NEXGEL remains focused on contract manufacturing and consumer branded products in the health and beauty space, the potential to unlock what we believe to be a potentially large opportunity without NEXGEL itself having to fund its development, that electron beam generated hydrogel lends itself to creating new topical and systemic therapies that can supplement existing therapies or create new ways to treat patients in a variety of clinical areas and the focus of using the hydrogel for drug delivery platform could lead to it becoming a platform for a family of useful and transformative therapies . These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance, or achievements to be materially different from any anticipated results, performance, or achievements for many reasons. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2024, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and which may be viewed at http://www.sec.gov/ .
Investor Contacts:
Valter Pinto, Managing Director
KCSA Strategic Communications
212.896.1254
Nexgel@KCSA.com
FAQ**
How will the establishment of NexGelRx and the 19.99% equity interest for shareholders impact the market perception of NexGel Inc Warrant NXGLW, particularly in terms of future valuation?
What are the projected financial benefits for NEXGEL shareholders from the 5% global royalty on products sold using its drug delivery technology, especially concerning the NexGel Inc Warrant NXGLW?
Given the exclusive manufacturing agreement between NEXGEL and NexGelRx, how might this relationship influence the operational costs associated with the NexGel Inc Warrant NXGLW?
What risks should shareholders consider regarding the successful implementation of NexGelRx’s drug delivery solutions that could affect the performance of the NexGel Inc Warrant NXGLW?
**MWN-AI FAQ is based on asking OpenAI questions about NexGel Inc (NASDAQ: NXGL).
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