NEXGEL Announces Spin-Off of Drug Delivery Program into NexGelRx
Rhea-AI Summary
NEXGEL (NASDAQ:NXGL) announced the spin-off of select drug delivery assets into a new company, NexGelRx, which will develop prescription drug delivery products using NEXGEL’s hydrogel technology.
Under the agreement NEXGEL will receive a 5% global royalty in perpetuity, retain a 19.99% equity stake in NexGelRx that is non-dilutive for up to $8 million of capital investment, and serve as the exclusive manufacturer of hydrogel for NexGelRx. NexGelRx closed initial outside funding and will focus exclusively on Rx commercialization while NEXGEL remains focused on manufacturing and consumer products.
Positive
- 5% global royalty in perpetuity on NexGelRx Rx products
- 19.99% equity stake retained by NEXGEL, non-dilutive up to $8 million
- NEXGEL named exclusive manufacturer of hydrogel for NexGelRx
Negative
- 19.99% stake is a minority interest with limited control
- Equity is non-dilutive only up to $8 million of capital
Insights
Spin-off creates a royalty stream and minority stake while keeping manufacturing and consumer focus separate.
NEXGEL transfers select Rx drug delivery assets into NexGelRx and retains a
The business mechanism separates development risk and capital needs: NexGelRx will pursue prescription opportunities and outside investors provided initial funding, while NEXGEL keeps manufacturing and consumer/OTC operations. Key dependencies include successful external funding beyond the initial close, commercial adoption of hydrogel-based Rx products, and execution of the manufacturing arrangement.
Watch for milestones and timelines from NexGelRx around regulatory filings and clinical programs, plus any capital raises that could approach the
NEXGEL shareholders will receive a non-dilutive
NEXGEL will also receive a
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
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
What did NEXGEL announce about the NexGelRx spin-off on December 11, 2025?
How much equity will NEXGEL retain in NexGelRx (NXGL)?
What royalty will NEXGEL receive from NexGelRx products (NXGL)?
Is NEXGEL financing NexGelRx development after the spin-off (NXGL)?
Will NEXGEL manufacture products for NexGelRx (NXGL)?
