In a remarkable display of market confidence, Nexgel Inc. (NXGL) shares have surged to a 52-week high, reaching a price level of $3.87. With a market capitalization of $27.14 million, the company has shown impressive momentum, delivering a stellar year-to-date return of 65%. According to InvestingPro data, analysts have set an optimistic price target of $6 for the stock. This significant milestone reflects a robust year-over-year growth, with the company's stock value witnessing an impressive 57.45% increase over the past year. Investors have shown increasing interest in Nexgel, a sentiment that is underscored by the stock's latest peak. The ascent to this new high suggests a strong investor belief in the company's potential and future prospects, marking a noteworthy period in Nexgel's financial journey. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, offering deeper analysis of NXGL's valuation and growth prospects.
In other recent news, NEXGEL, a specialty hydrogel producer, reported record revenue of $2.94 million in Q3 2024, marking a 141% increase year-over-year. This significant rise was driven by the Silly George brand acquisition and a strong performance in contract manufacturing. Despite the revenue growth, NEXGEL experienced a net loss of $754,000, an increase from the previous year's loss. The company's cash balance was reported to be $1.1 million as of September 2024.
NEXGEL has also launched Histasolv in collaboration with STADA and entered a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. The company is currently conducting a human trial for a hydrogel application in laser hair removal, with results expected in Q4 2024. Furthermore, NEXGEL anticipates exceeding $3 million in revenue in Q4 2024 and expects potential revenue from the laser hair removal study in the first half of 2025.
However, the company also reported an increase in selling, general, and administrative expenses by approximately 118%, largely due to increased advertising and marketing costs. Despite these challenges, NEXGEL remains optimistic about achieving cash flow positivity and reducing losses due to fixed facility and salary costs already being covered. These are recent developments in NEXGEL's business operations.
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