NEXGEL projects significant revenue growth for 2024 and 2025, driven by key market segments and product expansions.
Quiver AI Summary
NEXGEL, Inc. expects significant growth in 2024 and 2025, forecasting fourth quarter revenue of about $3.0 million and total revenue for 2024 at approximately $8.6 million, reflecting over 100% growth for the third consecutive year. For 2025, the company anticipates generating at least $13 million in revenue and achieving positive cash flow from operations. In a shareholder letter, CEO Adam Levy highlighted the successful expansion of NEXGEL's contract manufacturing and consumer product segments, with plans to launch new products and further growth from existing brands. The company is also progressing with its medical device development initiatives. Overall, NEXGEL aims to capitalize on numerous opportunities in its key business areas to deliver long-term shareholder value.
Potential Positives
- Expected revenue growth of over 100% year-over-year for the third consecutive year, reaching approximately $8.6 million for 2024.
- Forecast of at least $13 million in revenue for 2025, along with the expectation of achieving positive cash flow from operations.
- Successful onboarding of new global corporations in the contract manufacturing and white label segment, driving significant expansion.
- Anticipated product launches and strategic partnerships, including new offerings under the Medagel brand and progress with Stada, indicating strong growth potential and market demand.
Potential Negatives
- The revenue expectations for 2024, while indicating growth, may still be perceived as modest at approximately $8.6 million, raising concerns about the company's ability to scale significantly in a competitive market.
- The preliminary financial results provided are subject to change and have not been reviewed by an independent accounting firm, which may create uncertainty about the company's actual financial performance.
- The reliance on forward-looking statements introduces a level of risk, as it emphasizes the uncertainty in achieving projected results, which may be concerning to investors.
FAQ
What are NEXGEL's projected revenues for 2024 and 2025?
NEXGEL expects approximately $8.6 million in 2024 and at least $13 million in 2025.
How much growth did NEXGEL achieve in 2024?
NEXGEL achieved over 100% year-over-year revenue growth for the third consecutive year in 2024.
What key business segments is NEXGEL focusing on?
NEXGEL is focusing on contract manufacturing, consumer products, and medical device development to drive growth.
What new products will NEXGEL launch in 2025?
NEXGEL plans to launch new offerings including a SilverSeal wound kit and beauty under-eye patches in 2025.
What positive changes are expected in NEXGEL's cash flow?
NEXGEL expects to achieve positive cash flow from operations during 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NXGL Insider Trading Activity
$NXGL insiders have traded $NXGL stock on the open market 14 times in the past 6 months. Of those trades, 11 have been purchases and 3 have been sales.
Here’s a breakdown of recent trading of $NXGL stock by insiders over the last 6 months:
- ADAM E III DRAPCZUK (Chief Financial Officer) has made 2 purchases buying 27,500 shares for an estimated $73,125 and 0 sales.
- SCOTT ROBERT HENRY has made 2 purchases buying 11,818 shares for an estimated $29,999 and 2 sales selling 6,000 shares for an estimated $24,031.
- STEVEN MARK GLASSMAN has made 2 purchases buying 19,090 shares for an estimated $49,997 and 0 sales.
- JOHN NACHUM STEIN has made 2 purchases buying 13,636 shares for an estimated $34,999 and 0 sales.
- JEROME B ZELDIS has made 2 purchases buying 13,636 shares for an estimated $34,999 and 0 sales.
- ADAM R. LEVY (Chief Executive Officer) has made 1 purchase buying 3,636 shares for an estimated $9,999 and 1 sale selling 4,000 shares for an estimated $15,827.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$NXGL Hedge Fund Activity
We have seen 8 institutional investors add shares of $NXGL stock to their portfolio, and 2 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- VANGUARD GROUP INC added 21,349 shares (+74.6%) to their portfolio in Q3 2024, for an estimated $55,080
- NORTHEAST FINANCIAL GROUP, INC. added 20,000 shares (+168.8%) to their portfolio in Q3 2024, for an estimated $51,600
- GEODE CAPITAL MANAGEMENT, LLC added 18,771 shares (+49.3%) to their portfolio in Q3 2024, for an estimated $48,429
- NEWEDGE ADVISORS, LLC added 17,483 shares (+967.0%) to their portfolio in Q3 2024, for an estimated $45,106
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 11,259 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $29,048
- UBS GROUP AG added 2,744 shares (+inf%) to their portfolio in Q3 2024, for an estimated $7,079
- RENAISSANCE TECHNOLOGIES LLC added 2,624 shares (+10.2%) to their portfolio in Q3 2024, for an estimated $6,769
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Management expects 2024 fourth quarter revenue of approximately $3.0 million and full year 2024 of approximately $8.6 million, representing growth year-over-year of over 100% for the third consecutive year
Management expects to generate at least $13 million in revenue for 2025 and to achieve positive cash flow from operations during the year
LANGHORNE, Pa., Jan. 22, 2025 (GLOBE NEWSWIRE) --
NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today issued a letter to its shareholders from Chief Executive Officer, Adam Levy, and is providing guidance for 2024 and 2025.
Dear Fellow NEXGEL Shareholders,
2024 was a transformative year for NEXGEL and I have high expectations for 2025. I would like to share a brief recap of our accomplishments over the past year, the current status of our business units, and several upcoming growth levers for the business.
Our revenue expectation for the fourth quarter 2024 is approximately $3.0 million, bringing total revenue for 2024 to approximately $8.6 million, representing growth year-over-year of over 100% for the third consecutive year. Looking into 2025, we expect to generate at least $13 million in full year revenue and to be cash flow positive from operations during the year.
NEXGEL is focused on three core segments which we believe will drive significant shareholder value: (i) contract manufacturing and white label, (ii) consumer products and (iii) aspirational medical device development. These areas are key to our strategic growth and long-term success of the business.
Contract manufacturing and white label played a pivotal role in our growth in 2024 led by increased demand from existing customers and the successful onboarding of several new global corporations. This segment continues to be a major driver of our expansion and success.
Additionally, of our two new large international customers, one began generating revenue as expected in the fourth quarter of 2024 and the other is expected to begin generating revenue this quarter. Looking ahead, we have a healthy pipeline of potential new customers for 2025, including Innovative Optics. We anticipate the publication of their study of the carcinogenic plume generated by laser hair removal, as well as the effectiveness of our pads in suppressing that plume, later this quarter.
Consumer products across our entire portfolio saw remarkable expansion in 2024 driven by the continued success of our Medagel brand, the acquisitions of Kenkoderm and Silly George and our strategic partnership with Stada. This year Medagel will expand its product line with the anticipated launch of several new offerings, including a SilverSeal wound and burn kit and our moist burn pads. Kenkoderm continues to show growth, with plans to launch new products for an additional indication in the third quarter of this year.
After acquiring Silly George in May of 2024, we quickly integrated the brand onto our platform. As a result, we saw growth from its initial $2 million annual revenue run rate to over $5 million and believe the upward trajectory will continue. We have several exciting new products we anticipate launching in 2025, including a beauty under-eye patch that utilizes our own hydrogel technology.
Lastly, our partnership with Stada is progressing well and the first product, Histasolv, is exceeding projections. We are preparing for two additional product launches from Stada which we expect to occur during the second half of 2025.
There are many other applications for our high-water-content hydrogels and our aspirational medical device products, which provide our shareholders with significant upside potential. A great example is our recently completed 10 patient preclinical proof of concept study using our hydrogel patch to deliver topical apremilast. The goal of this study is to effectively target stubborn lesions that persist after systemic treatment by delivering apremilast directly to the affected areas. It also offers a potential alternative to systemic treatment for patients who do not qualify for it. We will soon be treating an additional 10 patients. Again, while this is proof of concept work, the early results are encouraging and given the potential we feel we should explore further with minimal additional cash investment by NEXGEL. Kip Crecca joined our Scientific Advisory Board to help develop and expand the applications of our gel in the surgical drape market. Overall, we believe the future is bright with many significant opportunities.
As we continue to drive innovation and growth across our key business segments, our focus remains firmly on delivering long-term value for our shareholders. With a strong foundation and significant opportunities on the horizon, we believe that 2025 will be a landmark year. We sincerely thank our shareholders for their unwavering trust and confidence, which are crucial to our continued success and growth as we work towards realizing our shared vision.
Sincerely,
Adam Levy, CEO
NEXGEL, Inc.
About NEXGEL, Inc.
NEXGEL is a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels. 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.
Preliminary Fourth Quarter and Year Ended 2024 Results
This press release sets forth certain preliminary estimates of financial and operating results that we expect to report for the fourth quarter and year ended December 31, 2024. We are currently in the process of finalizing our financial results for the December 31, 2024 fourth quarter and year end, and the preliminary estimated financial information presented above reflects various assumptions and estimates based upon preliminary information available to us as of the date of this press release. This information should not be viewed as a substitute for full audited financial statements prepared in accordance with accounting principles generally accepted in the United States for the fourth quarter and year ended December 31, 2024. Our independent registered public accounting firm has not reviewed this preliminary estimated financial information. As a result, it remains in all cases subject to change pending finalization. Items or events may be identified or occur after issuance of these preliminary results due to the completion of operational and financial closing procedures. In addition, final adjustments and other developments may arise that would require us to make material adjustments to this preliminary financial information.
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,” “project,” “prospects,” “outlook,” “guidance,” and similar words or expressions, or future or conditional verbs, such as “will,” “should,” “would,” “may,” and “could,” are generally forward-looking in nature and not historical facts. 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 and guidance, 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, 2023, 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
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
