NEXGEL Acquires Kenkoderm Psoriasis Skincare Line; No Financial Terms Disclosed
Portfolio Pulse from Benzinga Newsdesk
NEXGEL, Inc. has acquired Kenkoderm, a skincare line specializing in psoriasis treatment, with the aim of expanding its health and wellness consumer product portfolio. The acquisition is expected to be immediately accretive to NEXGEL's profitability, as Kenkoderm has been profitable over the trailing twelve months. NEXGEL plans to optimize marketing and supply chain operations to drive revenue growth and improve margins. Kenkoderm's products are sold primarily through e-commerce and Amazon, often as subscription bundles. NEXGEL's CEO, Adam Levy, intends to implement new marketing strategies and expand distribution channels, including retail. The transaction details can be found in NEXGEL's Form 8-K filed with the SEC on December 5, 2023.
December 05, 2023 | 1:10 pm
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POSITIVE IMPACT
NEXGEL's acquisition of Kenkoderm is expected to be immediately accretive to earnings, signaling potential positive short-term impact on NEXGEL's stock price. The company plans to leverage synergies in marketing and supply chain to drive further revenue growth and profitability.
The acquisition of a profitable company like Kenkoderm, which aligns with NEXGEL's existing product portfolio, is generally viewed positively by investors. The expected immediate accretion to earnings and the potential for optimized operations suggest a favorable short-term impact on NEXGEL's stock price. However, without financial terms disclosed, the full impact on the stock price cannot be precisely determined.
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