Gelteq partners with IDT Australia for dedicated gel manufacturing facility

MELBOURNE - Gelteq Limited (NASDAQ:GELS), a micro-cap pharmaceutical company with a market capitalization of $16.4 million, announced Thursday it has entered into a memorandum of understanding with IDT Australia (ASX:IDT) to establish a dedicated manufacturing facility for its gel-based delivery solutions. According to InvestingPro analysis, the company currently operates with moderate debt levels and faces cash flow challenges.

The partnership aims to support the scale-up and commercialization of Gelteq’s proprietary gel-based oral delivery platform across pharmaceutical, nutraceutical, and animal health markets globally.

The agreement includes provisions for facilities and equipment in a purpose-built facility, compliance certifications necessary for therapeutic, veterinary, and nutraceutical markets, and rapid scale-up capability to accommodate growth.

IDT Australia, with over 50 years of pharmaceutical manufacturing experience, specializes in pharmaceutical product development and cGMP manufacturing, including high containment production of Active Pharmaceutical Ingredients.

"Partnering with IDT to establish a locally-based, purpose-built manufacturing facility strategically positions Gelteq to accelerate and scale our products for the global nutraceutical, pharmaceutical and animal health markets," said Nathan Givoni, CEO of Gelteq. The announcement comes as the stock has experienced significant volatility, with InvestingPro reporting a 42% decline over the past year, though maintaining a "Fair" overall financial health score.

Paul McDonald, CEO of IDT Australia, noted that Gelteq’s gel technologies offer "distinct benefits in both delivery and combination therapy opportunities needed to improve care and dosing compliance across many end markets."

Gelteq, headquartered in Melbourne, develops white label gel-based delivery solutions for prescription drugs, nutraceuticals, pet care, and sports products. The company states its formulations address issues with traditional drug delivery methods such as swallowing difficulties, taste, and dosage control. Subscribers to InvestingPro can access 8 additional key insights about Gelteq’s financial position and market performance, along with detailed valuation metrics and growth indicators.

The announcement was made in a company press release statement.

In other recent news, Gelteq Limited has formed an exclusive logistics and distribution partnership with Healthy Extracts Inc. for the North American market. This collaboration designates Healthy Extracts as the sole partner responsible for the storage, shipping, and fulfillment of Gelteq’s product lines across the United States and Canada. The agreement aims to leverage Healthy Extracts’ infrastructure to enhance Gelteq’s distribution capabilities, with initial products expected to reach the market by the third quarter of 2025. Nathan Givoni, CEO of Gelteq, expressed confidence in this partnership’s potential to expedite product delivery and improve customer reach. Healthy Extracts will manage logistics from its Henderson, Nevada facility, which includes product receiving, warehousing, inventory, and order fulfillment. Duke Pitts, President of Healthy Extracts, anticipates increased margin efficiencies and revenue growth opportunities for both companies. The partnership also includes the integration of operational systems to improve inventory management and logistics efficiency. Both companies expect this vertical alignment to support their growth strategies and innovation efforts.

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