LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) this week issued a letter to its shareholders outlining robust financial guidance for 2024 and 2025, alongside updates on the company’s strategic growth initiatives across its core business segments. The company anticipates another year of significant growth and innovation.
For 2024, NEXGEL expects fourth-quarter revenue of approximately $3.0 million, bringing its annual revenue to $8.6 million. This represents over 100% year-over-year growth for the third consecutive year. Looking ahead, the company projects at least $13 million in revenue for 2025 and aims to achieve positive cash flow from operations.
“2024 was a transformative year for NEXGEL, and I have high expectations for 2025,” said CEO Adam Levy. “With a strong foundation and significant opportunities on the horizon, we believe that 2025 will be a landmark year.”
The company is focused on three core segments driving growth: contract manufacturing and white label, consumer products, and medical device development. The contract manufacturing division saw substantial momentum in 2024, bolstered by increased demand from existing clients and the addition of new international customers. One new client began generating revenue in Q4 2024, with another expected to follow this quarter.
NEXGEL’s consumer products division also reported remarkable performance, driven by the Medagel brand and acquisitions of Kenkoderm and beauty brand Silly George. Silly George’s annual revenue climbed from $2 million at the time of acquisition to $5 million. Levy highlighted several upcoming product launches for 2025, including a beauty under-eye patch powered by the company’s hydrogel technology and new offerings under the Medagel brand.
The company’s partnership with Stada is exceeding expectations, with its flagship product Histasolv outperforming projections. Two additional Stada products are planned for release in the second half of 2025.
NEXGEL is also exploring new applications for its hydrogel technology, including medical uses. A preclinical study on a hydrogel patch delivering topical apremilast showed promising results, with additional trials underway.
“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,” said Levy. “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.”
With sustained growth across its divisions and key strategic initiatives, NEXGEL is well-positioned to achieve ambitious targets and expand its market presence in 2025.
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