Adam E. Drapczuk III, the Chief Financial Officer of NexGel, Inc. (NASDAQ:NXGL), recently acquired a significant amount of the company's common stock. According to a recent SEC filing, Drapczuk purchased 17,500 shares at a price of $2.75 per share, totaling approximately $48,125. This transaction increased his indirect ownership of NexGel shares, bringing his total holdings to 74,894 shares.
The acquisition was part of a registered direct offering by NexGel, and Drapczuk agreed to a lock-up period of 180 days, during which he cannot sell or otherwise dispose of the acquired shares or the shares underlying any warrants. This transaction reflects Drapczuk's continued involvement and investment in the company's future.
In other recent news, NEXGEL, a specialty hydrogel producer, reported a record revenue of $2.94 million in the third quarter of 2024, marking a 141% increase year-over-year. This surge in revenue was attributed to the acquisition of the Silly George brand and a notable performance in contract manufacturing. Despite this revenue growth, NEXGEL experienced a net loss of $754,000, which was a rise from the $552,000 loss in the same quarter of the previous year.
The company's gross profit margin improved significantly to 43.6%. NEXGEL also launched Histasolv in collaboration with STADA and entered a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. A human trial for a hydrogel application in laser hair removal is currently underway, with results expected in the last quarter of 2024.
Looking forward, NEXGEL anticipates exceeding $3 million in revenue in the fourth quarter of 2024. The company also has expectations for potential revenue from a laser hair removal study set for the first half of 2025. Expansion of distribution in Europe and the U.S. is in progress, with products expected in stores by 2025. These are recent developments that investors should be aware of.
InvestingPro Insights
Adam E. Drapczuk III's recent purchase of NexGel, Inc. (NASDAQ:NXGL) shares aligns with several positive trends highlighted by InvestingPro data. The company has shown impressive revenue growth, with a 90.57% increase in the last twelve months as of Q3 2024, and an even more striking 140.79% quarterly growth in Q3 2024. This robust growth supports one of the InvestingPro Tips, which indicates that analysts anticipate sales growth in the current year.
Despite these positive revenue trends, investors should note that NexGel is currently not profitable, as pointed out by another InvestingPro Tip. The company's operating income margin stands at -58.43%, reflecting the challenges of achieving profitability in a growth phase. However, Drapczuk's significant investment and the agreed lock-up period suggest confidence in the company's long-term prospects.
The stock's performance has been notably strong, with a 77.72% price total return over the past year and a 40.34% return over the last six months. This aligns with the InvestingPro Tip indicating a high return over the last year and that the stock is trading near its 52-week high, currently at 93.52% of that peak.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for NexGel, providing a deeper understanding of the company's financial health and market position.
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