LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) announced its recent acquisition of Kenkoderm, a privately-owned skincare company renowned for its psoriasis treatment products, on December 1, 2023. This strategic move is expected to enhance NEXGEL’s health and wellness product line.
Kenkoderm was initially developed by a dermatologist as an alternative psoriasis treatment, avoiding the use of steroids or biologics, which are often associated with side effects. Kenkoderm currently offers six stock-keeping units (SKUs), including cream, salt soap, mud soap, shampoo, conditioner, and multivitamins. These products are primarily sold direct-to-consumer through e-commerce platforms and Amazon, with a significant portion of revenue derived from subscription bundles. The company has been profitable over the past twelve months and is expected to contribute immediately to NEXGEL’s earnings.
Adam Levy, NEXGEL’s Chief Executive Officer, expressed his enthusiasm about the acquisition, stating, “The Kenkoderm brand fits perfectly with our health and wellness line of products.” Levy also highlighted potential synergies in marketing and supply chain operations that could drive further profitability and growth for Kenkoderm’s brand. “We will immediately implement our marketing strategies while opening new distribution channels, including going to retail,” Levy added. He noted that NEXGEL’s team would continue to evaluate further accretive acquisitions that fit within the platform they have built at NEXGEL.
Eric Jones, President of Kenkoderm, applauded his team’s efforts to bring a variety of skincare products with fewer side effects to the market for the millions suffering from psoriasis. “We are proud to have built our brand and loyal customer base to date and strongly believe that NEXGEL is the perfect partner to assist us on continuing our growth trajectory,” Jones said.
This acquisition signifies a strategic move by NEXGEL to expand its portfolio in the health and wellness sector, leveraging Kenkoderm’s established brand and customer base. Investors can find more details about the Kenkoderm transaction in the Company’s Form 8-K filed with the Securities and Exchange Commission on December 5, 2023.
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