NEXGEL Expands Partnership with STADA, Receives $1M Non-Dilutive Capital

NEXGEL Inc. and STADA Arzneimittel AG have expanded their partnership to launch new digestive enzyme formulas and solutions for scars and stretch marks. STADA will provide $1 million in non-dilutive capital to support product launches and marketing efforts. The collaboration aims to bring health solutions to consumers across North America. NEXGEL's CEO, Adam Levy, stated that the partnership reflects a shared outlook on the opportunity to bring these solutions to consumers.

NEXGEL Inc. (NASDAQ: NXGL), a leading provider of ultra-gentle, high-water-content hydrogel products, has expanded its partnership with STADA Arzneimittel AG, a European leader in consumer health. The expanded collaboration focuses on launching digestive enzyme formulas and solutions for scars and stretch marks in the North American market. As part of this strategic expansion, STADA will provide $1 million in non-dilutive capital to support NEXGEL's product launches and marketing initiatives [1].

The partnership aims to bring innovative health solutions to North American consumers, leveraging NEXGEL's expertise in high-water-content hydrogel products and STADA's position as a European consumer health leader. Adam Levy, Chief Executive Officer of NEXGEL, stated, "This next phase of our partnership reflects a shared outlook that there is an opportunity in bringing these health solutions to consumers across North America. We are grateful for STADA’s financial support, which will accelerate our joint go-to-market strategy" [1].

STADA Arzneimittel AG, headquartered in Bad Vilbel, Germany, focuses on a three-pillar strategy consisting of consumer healthcare products, generics, and specialty pharma. The company achieved group sales of €4,059 million and adjusted constant-currency earnings before interest, taxes, depreciation, and amortization (adj. cc EBITDA) of €886 million in financial year 2024. As of 31 December 2024, STADA employed 11,649 people worldwide [1].

NEXGEL, based in Langhorne, Pa., has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. The company's brands include SilverSeal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George®. NEXGEL also has strategic contract manufacturing relationships with leading consumer healthcare companies [1].

The partnership with STADA follows NEXGEL's strong financial performance in the first quarter of 2025. The company reported revenue of $2.81 million, marking a 121% increase from Q1 2024's $1.27 million. Despite showing improved metrics, NEXGEL recorded a net loss of $0.71 million, though reduced from $0.85 million in Q1 2024. The company's EBITDA loss narrowed to ($0.54) million from ($0.84) million year-over-year [2].

NEXGEL's CEO, Adam Levy, expressed confidence in meeting the company's 2025 guidance of $13 million in revenue and achieving positive EBITDA during the year, citing growth opportunities in contract manufacturing with clients like Cintas and upcoming consumer branded product launches [2].

References:
[1] https://www.stocktitan.net/news/NXGL/nexgel-and-stada-ag-announce-expansion-of-partnership-for-north-e3sbvxl273jg.html
[2] https://www.stocktitan.net/news/NXGL/