NexGel (NASDAQ:NXGL) held its first-quarter earnings conference call on Friday. Below is the complete transcript from the call.
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Summary
NexGel reported first quarter 2026 revenue of $2.65 million, a slight decrease from $2.81 million in the same period last year, primarily due to lower sales from the Silly George product line.
The company recently completed the acquisition of the BioNx division, anticipated to triple annual revenue to approximately $35 million and be immediately accretive to profitability.
NexGel raised $13.8 million to fund the acquisition, with $8.8 million in cash and a $5 million convertible note issued to Cellularity.
Management highlighted the strategic partnership with Sequence Life Science, which invested $5.5 million, enhancing NexGel’s manufacturing, product development, and distribution capabilities.
Dave Hazard was appointed as Vice President of Sales for Bionic Surgical, expected to drive sales growth for NexGel’s new regenerative biomaterial products.
Three 510k devices are in development, with commercialization targeted for 2026, 2027, and 2028, representing $4.6 million in invested paid-in capital.
The company appointed Ian Blackman as the new CFO to oversee the integration of the acquisition and accelerate growth.
NexGel plans to provide further updates on the integration and financial performance in its second quarter financial results in August.
Full Transcript
OPERATOR
Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help. Please stand by. Your meeting is about to begin. Good afternoon. I will be your conference operator today. At this time I would like to welcome everyone to NexGel’s Shareholder Update conference call. I will now turn the call over to Valter Pinto, Managing Director of KCSA Strategic Communications for introductions. Please go ahead.
Valter Pinto
Thank you, operator. Good afternoon and welcome everyone to NexGel’s shareholder Update conference call. I’m joined today by Adam Levy, Chief Executive Officer. Before we begin, I’d like to remind everyone that statements made during today’s conference call may be deemed forward looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform act of 1995 and actual results may differ materially due to a variety of risks, uncertainties and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company’s business, I refer you to our filings with the SEC filed periodically. The company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law. With that, it’s my pleasure to turn the call over. Adam Levy. Adam, please go ahead.
Adam Levy (Chief Executive Officer)
Thank you Valter. And thank you everyone for joining us today. On today’s call, I would like to provide an overview of our first quarter 2026 financial results and bring everyone up to speed on the progress we have made on the integration of the acquisition. We recently closed in mid April. Starting with our first quarter results. Revenue for the first quarter totaled 2.65 million as compared to 2.81 million for the same period last year. The business year over year was relatively flat, with sales from Silly George coming in lower, which were partially offset by revenue growth in both contract manufacturing and our MediGel brand during the quarter. The increase in our SG&A was due primarily to costs incurred relating to the acquisition of our Bionics division and the Kiss Nail Products legal case which has since been settled. Cash and restricted cash as of March 31, 2026 was approximately $2.1 million. As of today, our cash on hand is $1.8 million. In total, we have raised $13.8 million, comprised of $8.8 million received in cash and 5 million of our convertible note delivered to Cellularity to fund the acquisition and to provide the business with working capital. The first quarter does not include any revenue from our acquisition. In the second quarter we have already seen sales from Silly George normalize and recover and we will begin accounting for revenue from our acquisition for about half of the second quarter. The financing for Bionics was led by Sequence Life Science with a 5.5 million investment that not only strengthened the financing structure of the transaction but also aligns us with a partner that enhances our capabilities across manufacturing, product development and distribution. Importantly, this transaction replaced a financial lender who was seeking a near term exit which with a long term strategic partner who is focused on supporting the long term growth and execution of our business. Brian J. Keizer and Kevin Harris, CEO and COO of Sequence Life Science, have since joined our Board of Directors. Brian and Kevin bring deep industry experience, product innovation and a strong distribution network that will help us grow and expand the potential of our new acquisition. I am very excited to have them in our corner and I’m looking forward to working with them to grow the business. The Bionics portfolio includes six established regenerative biomaterial products, positioning us squarely within one of the fastest growing segments of healthcare. These are not early stage assets, they are commercial stage products with more than a decade of clinical use, demonstrated real world utility and already have existing reimbursement pathways. These products are approved in approximately 500 hospitals across the US and represent a large opportunity for bionics in several surgical specialties as well as wound care. To lead this effort, we recently appointed Dave Hazard as Vice President of Sales for Bionic Surgical, who brings more than 13 years of sales leadership across Orthopedics, spine Biologics and joins the company in an important stage in its commercial growth phase. He has a strong track record of building scalable sales infrastructure and establishing the kind of enterprise partnerships that drive repeatable revenue. His expertise in biologics and commercial execution will be instrumental as we continue expanding operations for our newly formed Bionics division. In addition to our existing products, we currently have three 510k devices in development within our pipeline. These programs represent approximately $4.6 million in invested paid in capital and are targeted for commercialization in 2026, 27 and …
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