Investment Highlights for NEXGEL, Inc. (NXGL-NASDAQ)
NEXGEL, Inc.
2150 Cabot Blvd West, Suite B
Langhorne, PA 19047
Phone: (215) 702-8550
https://nexgel.com/
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NEXGEL, Inc. develops skin-friendly hydrogels for healthcare, cosmetics, and wellness applications. Using a proprietary electron-beam process, NEXGEL creates breathable, irritation-free patches for drug delivery, wound care, and sensitive-skin products.
- Proprietary Hydrogel Technology Platform. NEXGEL’s patented hydrogel formulations are engineered for superior skin adhesion, breathability, and moisture balance, making them ideal for a variety of applications that require extended wear, comfort, and biocompatibility. The Company’s platform technology serves as the foundation for differentiated solutions in advanced wound care, transdermal drug delivery, wearable medical devices, and premium consumer health products. Its ability to tailor formulations for specific use cases adds significant value for both internal product lines and external development partners.
- Diversified, Scalable Business Model. NEXGEL leverages a hybrid commercial model that spans three integrated revenue streams: branded OTC hydrogel products, private label solutions for retail and healthcare channels, and contract development and manufacturing (CDMO) services for third-party customers. This structure enables operational leverage, supports recurring revenue opportunities, and allows the Company to participate in multiple end markets with varying growth dynamics—providing resilience and scalability as it expands its customer base.
- Strategic Positioning in High-Growth Markets. The Company operates at the convergence of several fast-growing healthcare segments, including chronic wound care, drug-free pain management, transdermal delivery, and personalized medical technologies. With rising consumer and clinical demand for non-invasive, skin-friendly therapeutic solutions, NEXGEL’s hydrogel technology is well-positioned to capture share in underserved and innovation-driven market niches.
- Vertically Integrated cGMP Manufacturing Facility. NEXGEL owns and operates a 16,500 sq ft cGMP-compliant facility that supports full-scale formulation, development, and production under FDA-regulated quality systems. This vertical integration allows for rapid prototyping, tight quality control, and efficient scalability for both proprietary and partner products. The in-house infrastructure is a key differentiator that enables the Company to respond quickly to customer needs and accelerate time-to-market for new offerings.
- Robust and Expanding Intellectual Property Portfolio. NEXGEL’s IP portfolio includes 17 active patents covering its hydrogel compositions, manufacturing processes, and targeted therapeutic and consumer applications. The Company also has patents pending for innovations such as drug-device combinations and smart hydrogel interfaces. This broad IP protection reinforces NEXGEL’s market position, supports potential licensing opportunities, and increases its appeal to strategic partners.
- Experienced Leadership Team with Industry Expertise. The management team brings decades of experience in life sciences, healthcare manufacturing, product commercialization, and strategic partnerships. Leadership has demonstrated a strong ability to execute operational plans, build cross-functional capabilities, and navigate both regulated and retail markets, which positions the Company well for continued growth.
- Potential for Strategic Partnerships and Global Expansion. NEXGEL is actively exploring co-development agreements and licensing opportunities with pharmaceutical, biotech, and medical device companies seeking hydrogel-enabled solutions. Additionally, the Company is preparing for international expansion through regulatory filings and distribution partnerships in key global markets, which could unlock meaningful revenue potential beyond the U.S.
- Strong Revenue Momentum and Improving Margins. The Company reported 121% year-over-year revenue growth in Q1 2025, reaching $2.81 million, alongside a gross margin expansion to 42.4%. These gains reflect growing market traction across its business lines, operational efficiencies from higher throughput, and the pricing strength of its value-added product portfolio. Continued momentum may provide a clear path to cash flow breakeven and long-term profitability.
- Solid Cash Position Supporting Near-Term Operations. As of March 31, 2025, NEXGEL had $1.19 million in cash. Combined with improving margins and a diversified revenue base, this supports its path to positive EBITDA and positions the Company for growth in 2025 and beyond.