LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) said it has spun off select drug delivery assets into a new entity, NexGelRx, a move designed to unlock value from its proprietary hydrogel technology while limiting financial risk to the parent company.
Under the transaction, NEXGEL shareholders will retain a non-dilutive 19.99 percent equity interest in NexGelRx for up to $8.0 million of capital invested in the new company. In addition, NEXGEL will receive a 5 percent global royalty in perpetuity on products sold by NexGelRx that use its drug delivery technology.
NexGelRx will focus exclusively on developing and commercializing prescription drug delivery solutions based on NEXGEL’s electron beam–generated hydrogel platform. The company also closed initial outside funding at the time of the spin-off, providing capital to advance development without requiring direct investment from NEXGEL.
As part of the agreement, NEXGEL will serve as the exclusive manufacturer of hydrogel for NexGelRx, preserving a long-term operational role while allowing the new entity to pursue higher-risk, higher-reward pharmaceutical opportunities independently.
Chief Executive Officer Adam Levy said the spin-off creates a dedicated structure to pursue prescription drug delivery applications that have already shown promising data, while allowing NEXGEL to remain focused on its core contract manufacturing and consumer health and beauty products. He said the transaction offers potential upside for shareholders without forcing the company to fund costly drug development internally.
NEXGEL director Dr. Jerome Zeldis, who will also serve on the NexGelRx board, said the hydrogel technology has broad potential across topical and systemic therapies. He said the platform could support a range of new treatment approaches that supplement existing therapies or create entirely new options in multiple clinical areas.
The spin-off reflects a broader strategy by NEXGEL to separate its consumer and manufacturing operations from higher-value pharmaceutical development, while retaining economic participation through equity ownership, royalties, and manufacturing rights. The company said it will continue to evaluate additional opportunities to monetize its technology and enhance long-term shareholder value.
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