In This Article:
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NexGel Inc (NASDAQ:NXGL) reported a 121% year-over-year increase in revenue for Q1 2025, totaling $2.81 million.
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Gross profit margin improved significantly to 42.4% in Q1 2025 from 12.6% in Q1 2024.
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Contract manufacturing and consumer branded products both showed substantial growth, with consumer products increasing by 189% year over year.
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The company has a robust pipeline of new and potential customers for 2025, indicating future growth opportunities.
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NexGel Inc (NASDAQ:NXGL) has received approval from Health Canada to sell its Silver Seal product, expanding its market reach.
Negative Points
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The launch of Avi's Raonic machine has been delayed, impacting potential revenue from this partnership.
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Selling, general, and administrative expenses increased significantly to $1.96 million in Q1 2025 from $1.03 million in Q1 2024.
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The company is facing potential challenges with tariffs on products sourced from China, which could impact costs.
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NexGel Inc (NASDAQ:NXGL) reported a net loss of $0.71 million for Q1 2025, although this is an improvement from the previous year.
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The company may need to explore additional financing options, as current cash reserves might not be sufficient until achieving EBITDA positivity.
Q & A Highlights
Q: On your guidance, how much did you bake into revenue or sales from Avi's device, and does the delay affect the guidance, or are there other factors that could offset what you expected from Avi this year? A: We did not bake in a tremendous amount for Avi, only because it's not something under our control. The revenue we had for Avi was relatively minor, so it should not impact us meeting our projection of $13 million.
Q: Could you provide more details on the product you plan on launching with Stata and the market opportunity for it? A: The first product was Histosol, a digestive enzyme. The strategy with Stata is to create a line of digestive enzymes for other indications. Another digestive enzyme will launch in Q4, with a third in Q1. We are also discussing products with synergies with some of the Meiggel offerings for Q1 and Q2 of 2026.
Q: Are there any strategies in place to further accelerate sales for Silly George, and are you seeing any plateauing of sales? A: We've seen nothing but growth. Last month was the largest month for the product. We identified TikTok as a great platform for us, but we've put plans on hold until there's clarity around TikTok. We're also exploring platforms like WebMD.