Nexgel, Inc. (NASDAQ: NXGLW)

NexGel manufactures electron beam cross linked hydrogels for wound care medical diagnostics transdermal drug delivery and cosmetics.
The company operates as a contract manufacturer supplying gels to third parties who incorporate them into their own products.
It also offers a line of branded consumer products sold direct to consumer through electronic commerce retail and medical office channels.
Additionally NexGel provides custom and white label opportunities that let other brands create finished hydrogel products which they can then brand and re sell.

Revenue is derived from the sale of hydrogels to contract manufacturing customers.
Revenue also comes from the sale of branded consumer products via electronic commerce retail partnerships and specialized medical office distributors.
Further income is generated from development fees and product sales associated with custom and white label offerings including the joint venture CG Converting and Packaging LLC which expands finished goods capacity.

The company organizes its operations into four reportable segments: Contract Manufacturing Consumer Products Custom and White Label Opportunities and Medical Devices.

• Contract Manufacturing involves the manufacture and supply of electron beam cross linked hydrogels to third parties for use in drug delivery other medical applications non prescription therapeutic applications moist wound and burn dressings components of medical devices and cosmetic applications.
The company's 13 500 square foot facility in Langhorne Pennsylvania operates at 15 to 20 percent capacity with the ability to scale up to approximately 1 point 4 billion square inches of product annually.
Through its 50 percent interest in the CG Converting and Packaging LLC joint venture NexGel subleases 6 200 square feet in Granbury Texas to expand finished goods delivery to its growing customer base.

• Consumer Products include branded lines such as Medagel SilverSeal Hexagels Turfguard Kenkoderm and Silly George which are sold direct to consumer through electronic commerce retail partnerships and specialized medical office channels.
The Medagel family focuses on over the counter remedy solutions like blister and pain applications while Kenkoderm addresses skincare for consumers with psoriasis and Silly George targets beauty with false eyelashes and related eye products.
NexGel continues to develop new products targeting over the counter pharmaceutical drug delivery pain management beauty cosmetics sports applications cannabinoids and podiatry and pursues a roll up strategy through potential acquisitions.

• Custom and White Label Opportunities allow other over the counter brands to incorporate hydrogels into their products by paying a development fee that eliminates NexGel's financial risk in the success or failure of the custom product.
Unlike the contract manufacturing model where bulk roll stock hydrogel is supplied for further processing this approach delivers a finished product that the customer can brand and re sell.
The offering is particularly attractive to beauty and cosmetics companies seeking paraben free formulations and personalized color texture options.

• Medical Devices focuses on developing products such as the NEXDrape incise surgical drape and the NEXDerm adhesive tape for securing lines to reduce skin pain and irritation.
Proof of concept studies using animal and human cadaver models support the belief that NEXDrape provides a gentle to the skin alternative to current adhesive drapes and can deliver antiseptic and antibiotic agents while preventing air bubbles and dermis removal.
NEXDerm is designed to incorporate exclusively licensed X Static silver fiber technology to allow easy repositioning pain free removal gentle to skin contact and increased infection prevention over existing products such as Tegaderm.
NexGel intends to file 501(k) premarket submissions with the FDA to demonstrate substantial equivalence but plans to commercialize these devices through licensing or partnering arrangements with third parties rather than direct sales.

NexGel is one of only two manufacturers that use electron beam technology to produce high performance hydrogels for the wound care cosmetic and drug delivery industries giving it a niche position with limited direct competition in its contract manufacturing business.
In the consumer products and medical device areas the company faces competition from large established firms such as Johnson & Johnson Pfizer Consumer Healthcare and Procter & Gamble.
Competitive advantages stem from its proprietary manufacturing process that avoids chemical cross linking agents making its gels gentler to skin its ability to meet tight tolerance specifications for thickness water content adhesion absorption moisture vapor transmission rate and release rate and its broad selection of liners that allow customization of color texture and performance.
The company's dedicated manufacturing facility and compliance with FDA current good manufacturing practice requirements create a high barrier to entry for potential competitors.
Additionally NexGel's portfolio of patents trade secrets and ongoing technological innovations helps protect its market position.

The company serves a diverse base of contract manufacturing customers that integrate its hydrogels into a wide range of end products including drug delivery patches wound dressings medical device components and cosmetic items.
It also sells directly to consumers who purchase its branded over the counter skincare beauty and remedy solutions through electronic commerce platforms retail stores and medical office distributors.
Furthermore NexGel works with other over the counter brands seeking custom or white label hydrogel solutions to incorporate its technology into their own product lines.
During the years ended December 31 2024 and 2025 no single customer accounted for ten percent or more of total revenue indicating a broadly diversified customer base.