NexGel shares fall 11.11% intraday after spin-off of Rx unit to NexGelRx, with equity and royalty retention.

NexGel, Inc. (NASDAQ: NXGL) fell 11.11% intraday following the announcement of spinning off its drug delivery assets into NexGelRx, a move intended to unlock value through a non-dilutive 19.99% equity stake and perpetual 5% royalty for shareholders. While the company emphasized reduced financial risk and long-term upside, the market reacted negatively, potentially perceiving the spin-off as a signal of strategic uncertainty or reduced near-term revenue visibility. The transaction, which includes external funding for NexGelRx and preserves manufacturing rights for NEXGEL, was accompanied by a second news item noting additional investment in NexGelRx by Eric Gruntfest, though this did not offset the immediate bearish sentiment. The decline aligns with prior negative reactions to similar strategic announcements, as highlighted in recent headlines showing consistent intraday losses following spin-off disclosures.