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NEXGEL Acquires Kenkoderm Psoriasis Skincare Line Acquisition expands NEXGEL's health and wellness consumer product portfolio Synergies support optimization of marketing and supply chain operations to drive revenue growt

Key Takeaway: NEXGEL, Inc. has acquired Kenkoderm, a skincare line that specializes in psoriasis treatment. This acquisition aims to enhance NEXGEL's product portfolio and is expected to contribute positively to its revenue and profitability. The integration of Kenkoderm’s products, which were developed to avoid the side effects of traditional treatments, aligns with NEXGEL’s health and wellness strategy. NEXGEL's CEO believes there are immediate synergies to improve marketing and supply chain operations. The move also opens up opportunities for further growth and market expansion.

Market Sentiment Analysis

POSITIVE FACTORS

  • The acquisition is expected to be immediately accretive to NEXGEL.
  • Kenkoderm products focus on alternative treatments for psoriasis, providing less side effects.
  • NEXGEL plans to implement its marketing strategies and open new distribution channels.

Full Press Release Details

Acquires Kenkoderm Psoriasis Skincare Line
expands NEXGEL's health and wellness consumer product portfolio
support optimization of marketing and supply chain operations to drive revenue growth and margins
for the trailing twelve months is profitable and expected to be immediately accretive to NEXGEL
Pa. - December 5, 2023 - NEXGEL, Inc. ("NEXGEL" or the "Company") (NASDAQ: "NXGL"),
a leading provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced the
acquisition of Kenkoderm, a privately-owned skincare product company focusing on treating the symptoms of Psoriasis, effective
Kenkoderm skincare line was originally developed by a dermatologist to provide alternative treatments for psoriasis that did not use
steroids or biologics that often have side effects. Today, Kenkoderm has six stock keeping units (SKUs) including cream, salt soap, mud
soap, shampoo, conditioner and multivitamin. The Kenkoderm products are sold primarily direct-to-consumer through e-commerce and Amazon,
with a significant portion of revenue derived from subscription bundles. Kenkoderm, for the trailing twelve months is profitable and
expected to be immediately accretive to NEXGEL.
Levy, NEXGEL's Chief Executive Officer, commented, "The Kenkoderm brand fits perfectly with our health and wellness line
of products. Together, we believe there are immediate synergies to support the optimization of marketing and supply chain operations
to not only continue growing their brand, but also drive further profitability. We will immediately implement our marketing strategies
while opening new distribution channels including going to retail. Our team will continue to evaluate further accretive acquisitions
that fit within the platform we have built at NEXGEL."
Jones, President of Kenkoderm, stated, "Our entire team has worked tirelessly to bring to market a variety of skincare products,
with less side effects, to the millions of those that suffer with psoriasis today. We are proud to have built our brand and loyal customer
base to date and strongly believe that NEXGEL is the perfect partner to assist us on continuing our growth trajectory."
details relating to the Kenkoderm transaction, please see the Company's Form 8-K filed with the Securities and Exchange Commission
on December 5, 2023.
is a leading provider of ultra-gentle, high-water-content hydrogels for healthcare and consumer applications. Based in Langhorne, Pa.,
the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. Alongside its strategic partners,
NEXGEL has formulated more than 200 different combinations to bring natural ingredients to gentle skin patches that can be worn for long
periods of time with little to no irritation.
was originally developed by a dermatologist for her husband, who suffered from psoriasis. He wanted an alternative treatment that did
not use steroids or biologics that can often have side effects. After identifying that one source of the inflammation and flaring of
psoriasis was caused by the skincare products he was using, the couple teamed up with other dermatologists to develop a skincare line
focused on reducing symptoms associated with psoriasis. After realizing the significant positive impact of this product, a line of products
containing ingredients that treat inflammation and breakouts was created. For more information, please visit www.kenkoderm.com.
press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part
of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe,"
"anticipate," "estimate," "expect," "intend," "plan," "project,"
"prospects," "outlook," and similar words or expressions, or future or conditional verbs, such as "will,"
"should," "would," "may," and "could," are generally forward-looking in nature and not
historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
Company's actual results, performance, or achievements to be materially different from any anticipated results, performance, or
achievements for many reasons. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements,
whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's
forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2022, including
but not limited to the discussion under "Risk Factors" therein, which the Company filed with the SEC and which may be viewed
Pinto, Managing Director
Strategic Communications

Frequently Asked Questions

What is the main focus of the Kenkoderm skincare line?

Kenkoderm focuses on treating psoriasis symptoms without using steroids or biologics.

How many products are in the Kenkoderm line?

The Kenkoderm line includes six products: cream, salt soap, mud soap, shampoo, conditioner, and multivitamin.

How does Kenkoderm sell its products?

Kenkoderm products are primarily sold directly to consumers via e-commerce and Amazon.

What are the anticipated benefits of the acquisition for NEXGEL?

The acquisition is expected to optimize marketing and supply chain operations to boost revenue.

What innovative feature do NEXGEL's products have?

NEXGEL provides ultra-gentle, high-water-content hydrogels designed for minimal irritation.

Last updated: Dec 5, 2023