NEXGEL, Inc. announced the creation of NexGelRx, a standalone company that will develop and commercialize prescription drug‑delivery solutions built on NEXGEL’s proprietary electron‑beam cross‑linked hydrogel technology.
Under the spin‑off, NEXGEL will hold a 19.99% equity stake in NexGelRx, a non‑dilutive position protected for up to $8 million of capital invested in the new entity. In addition, NEXGEL will receive a perpetual 5 % global royalty on all products sold by NexGelRx that incorporate its hydrogel technology, and NexGelRx will be the exclusive manufacturer of those hydrogels.
The transaction is designed to unlock value for shareholders by separating the high‑margin drug‑delivery opportunity from NEXGEL’s core contract‑manufacturing and consumer‑branded businesses. CEO Adam Levy said the 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.”
NEXGEL’s Q3 2025 financials provide context for the spin‑off. Revenue was $2.93 million, essentially flat year‑over‑year, while gross profit margin improved to 42.4 % from 39.3 % in Q3 2024. Net loss attributable to stockholders narrowed to $0.65 million from $0.69 million, and cash stood at $938 k. Levy explained that the flat revenue was offset by disciplined cost management, which helped reduce the loss and improve margins.
Analysts noted that the market reacted positively to the announcement, citing the retained equity stake, perpetual royalty, and exclusive manufacturing rights as key value‑creation drivers. Dr. Jerome Zeldis, director of NEXGEL and NexGelRx, added that the electron‑beam generated hydrogel “lends itself to new topical and systemic therapies that can supplement existing treatments or create new ways to treat patients in a variety of clinical areas.”
With NexGelRx taking over the drug‑delivery platform, NEXGEL will continue to focus on its contract‑manufacturing and consumer‑branded businesses, while the new company is positioned to generate a royalty stream and potentially scale the hydrogel technology into a broader portfolio of prescription products.
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