NEXGEL, Inc. (NASDAQ:NXGL) Q4 2023 Earnings Call Transcript

Naz Rahman: Got it. And as far as you’re going into retail, I mean you guys talked about a little bit. When you go into retail, is your product offering just going to include the Silver brand? Or do you also plan including Kenkoderm and also potentially [indiscernible] products?

Adam Levy: So that’s a great question. The idea at retail is you want to go with your hero products, right? Because retail can be a double-edged sword. If you go to retail with the wrong product or too early on a product, you’ll get destroyed, you’ll end up paying a fortune to get it in there. It won’t sell, you’ll get returns, they want to pay you. A lot of the cash flow problems that Ken was worried about will begin to occur. So in the beginning, we’re going to limit it to Kenkoderm certainly has the ability to go in there. It should be a very good product for retail because it is focused and specialized and has strong Amazon sales, SilverSeal for sure, hexogels, those are the types of products we’ll start with and then we’ll see from there.

Naz Rahman: Got it. And my last question is, could you potentially give an update on the status of the 510(k) medical devices [indiscernible], where you put those in development? What are your plans for that in 2024.

Adam Levy: Sure. So we’ve kind of pushed those a little bit on hold only because there are so many things we can do and the equipment necessary for the extrusion process on there, while we now have identified what it is we need our first priority is for a mechanization that will allow us to deliver all the AbbVie products and STADA products, et cetera. So that’s been kind of a shift but we’re also still running experiments on sterilization protocols and interestingly enough, it seems like there’s another opportunity for us with a cataract surgical drape. So we’re still experimenting. We’re still developing the product but it’s really kind of number 5 in our list of priorities right now just because there’s so much for us to do.

Operator: [Operator Instructions] We have no questions in the queue at this time. This will conclude today’s NEXGEL fourth quarter and full year 2023 earnings conference call. You may disconnect your line at this time and have a wonderful day.