NEXGEL Subsidiary, CG Converting and Packaging, Announces it will Supply SilverSeal to Cintas Corporation
NEXGEL, a leading provider of medical and OTC products like hydrogels, announced a supply agreement with Cintas
Cintas, a top provider of corporate uniforms and safety products, will distribute SilverSeal, NEXGEL's hospital-grade hydrogel dressing for wounds and burns, to its customers in various sectors.
The first order is expected in Q4 2024. This partnership aims to enhance SilverSeal's brand awareness and generate revenue for NEXGEL.
CEO Adam Levy emphasized the significance of the partnership for both revenue and brand visibility.
- NEXGEL's supply agreement with Cintas will enhance revenue.
- The partnership increases brand awareness for SilverSeal.
- SilverSeal will reach a broad customer base across various sectors.
- None.
Insights
Financial Perspective: The supply agreement between NEXGEL and Cintas Corporation presents a notable opportunity for NEXGEL. Primarily, it introduces a new revenue stream, which is anticipated to commence in the fourth quarter of 2024. This deal not only enhances NEXGEL’s revenue potential but also signifies a strategic alignment with a well-established partner like Cintas, which services over 1 million businesses across North America. This broad market reach can significantly boost SilverSeal's market penetration and brand recognition.
For investors, the key points of interest are the scale of revenue that could be generated from this agreement and the associated market exposure. However, the precise financial terms have not been disclosed, which leaves some uncertainty regarding the exact impact on NEXGEL’s financials. The long-term financial health of NEXGEL could see positive effects if this agreement leads to recurring orders and stronger market positioning.
Healthcare and Product Impact: SilverSeal is a hydrogel dressing designed for wound and burn care, which is a critical need in many sectors such as healthcare, hospitality and public service. The adoption of SilverSeal by Cintas indicates a recognition of its efficacy and potential benefits in wound management. Hydrogels like SilverSeal are known for their high-water content, which provides a moist healing environment beneficial for wound recovery. This could translate to better healthcare outcomes for employees of Cintas' customers, potentially reducing recovery times and improving overall employee well-being.
From a medical standpoint, the wider distribution of SilverSeal can enhance its clinical credibility and encourage further adoption in the medical community. This partnership may serve as an endorsement, potentially leading to more widespread use in various industries and healthcare settings.
Market Dynamics: The partnership with Cintas positions NEXGEL to significantly expand its market presence. Cintas’ extensive network and reputation in various industries provide a substantial platform for SilverSeal. This collaboration could catalyze NEXGEL’s growth by tapping into Cintas’ established customer base. Given that Cintas serves over a million businesses, the potential for market expansion is considerable.
For retail investors, understanding the market dynamics is crucial. This agreement could lead to increased market share in the wound care segment, especially in non-traditional medical markets. However, it's essential to monitor the execution of this agreement and the market's reception of SilverSeal over the coming quarters.
LANGHORNE, Pa., June 27, 2024 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: NXGL), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today announced it will supply SilverSeal to Cintas Corporation, a leading provider of corporate identity uniforms, first aid and safety products, and services to over 1 million businesses across North America.
Through this supply arrangement, Cintas will distribute SilverSeal to its customers in many sectors such as hospitality and public service. SilverSeal, a hospital-grade hydrogel dressing for wounds and burns will be offered as a wound care solution for employees of their customers. The first order of SilverSeal is expected to be delivered during the fourth quarter of 2024.
Adam Levy, CEO of NEXGEL, commented, “This partnership with one of the nation’s leading providers of products and services for businesses across the U.S. is significant to us not only for the associated revenue, but also for SilverSeal’s brand awareness. We are proud that SilverSeal has been selected by Cintas as a solution for their customers.”
About NEXGEL, Inc.
NEXGEL is a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels. Based in Langhorne, Pa., the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. NEXGEL brands include Silverseal®, Hexagels®, Turfguard®, Kenkoderm® and Silly George®. Additionally, NEXGEL has strategic contract manufacturing relationships with leading consumer healthcare companies.
About Cintas
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
Forward-Looking Statement
This 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 at http://www.sec.gov/.
Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
212.896.1254
Valter@KCSA.com
FAQ
What is NEXGEL's new partnership with Cintas ?
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