LANGHORNE, PA — NEXGEL Inc. (NASDAQ: NXGL) replaced its chief executive and launched a review of its operations, assets and capital structure as the medical technology company seeks to improve liquidity, simplify its business and concentrate resources on its primary growth platforms.
Brian Kieser was appointed interim chief executive officer effective Aug. 21, succeeding Adam Levy, who stepped down as CEO, employee and from all officer, director, committee and other fiduciary positions at NEXGEL and its subsidiaries.
The board also created a Special Committee for Strategic Review and Value Creation that will examine potential actions involving non-core assets, the company’s capital structure, liquidity, operating efficiency and profitability.
The committee expects to develop an initial strategic and value-creation framework for the board within 30 to 45 days.
The review could result in continued operation, divestitures, strategic partnerships, restructuring or wind-downs involving non-core assets, product lines and businesses, according to NEXGEL. The company identified BioNX Surgical, BioNX Regenerative Eye Health & Aesthetics and its advanced hydrogel technologies as its principal growth opportunities.
Kieser became involved with NEXGEL following its April acquisition of certain assets from Celularity Inc. His work has included integration of the BioNX Surgical division, manufacturing transition initiatives, commercialization, financing and strategic planning through NEXGEL’s partnership with Sequence Life Science Inc.
The board unanimously selected Kieser for the interim CEO position, citing his involvement in those initiatives as NEXGEL works through the integration and strategic review.
The special committee consists of Kevin Harris, who will serve as chairman, and NEXGEL board Chairman Steve Glassman. It will oversee the strategic review, restructuring initiatives, capital-structure matters and potential related-party transactions.
“Our responsibility is to conduct a disciplined review of the Company’s assets, operations and capital structure and develop a framework that positions NEXGEL for long-term success,” Harris stated.
Improving liquidity is a central component of the review. The committee is also charged with considering ways to reduce operating complexity and direct capital and management resources toward businesses the board considers to have the strongest long-term prospects.
Levy’s departure remains subject to a separation agreement and release that the parties are negotiating.
Under the expected agreement, Levy will provide transition assistance for 90 days after his Aug. 21 separation. That work is expected to cover organizational knowledge transfer, customer, supplier and strategic-partner relationships, the continuing BioNX Surgical integration and public-company reporting and disclosure matters.
The arrangement will not constitute continued employment or a consulting relationship, and Levy will receive no additional compensation for the transition work beyond benefits provided under the separation agreement, according to NEXGEL.
Levy led the company during an expansion of its hydrogel platform and completion of the BioNX Surgical asset acquisition earlier this year.
NEXGEL plans to provide additional updates as the strategic review and leadership transition progress.
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