Now I'd like to turn the floor over to today's host, Adam Levy, CEO of NEXGEL Incorporated. Sir, the floor is yours.
Thank you, Jenny. Thank you, everyone, for joining us today for our presentation. So a little bit about NEXGEL, who we are and what we do. This company was a small subsidiary of a larger public company and, for two decades, created custom hydrogel solutions. Never really promoted the business, never had a salesperson, never had a biz dev person. Was doing about $600,000 a year in sales when I got here, and my mandate was to try to grow that into a real business. In the past couple of years, we now have agreements with several multi-billion dollar corporations that you see on the right, and we had a very specific plan for growth when I got here in 2019. The three verticals for growth that I wanted to focus on were: one, creating our own medical devices.
This company had been creating components to other people's medical devices for its entire existence, so moving up the food chain was very important. The largest opportunity that I thought was custom and white label. And what we meant by that is finding companies that had successful brands, some kind of a lotion, a cream, a gel for some indication - eczema, acne, wrinkles, whatever it may be - and providing them with the opportunity to create a true line extension into a patch. That strategy was going very, very well, but then the pandemic hit, and it led us to the third of our verticals, which was our own branded products. Originally, I was not that interested in our own branded products. I thought that would come much later because brands are very difficult. They're fickle. Consumers are fickle. Brands are expensive to build.
There's no guarantee of success, and we did not have a lot of resources when we first started. However, with the advent of the pandemic, we sort of pushed that part up, obviously, for obvious reasons. So a little bit about our facility. In Langhorne, Pennsylvania, which is the original facility, at the heart of our technology is the electron beam accelerator. We have a 16,500 sq ft facility that houses the accelerator. It is FDA, ISO, cGMP, and we have huge capacity to make gel in this facility. When I got here, we were running at about 4% capacity. We're probably only somewhere between 15%-18% now, so the manufacturing of gel was never really the issue.
What makes the gel unique is, by using the accelerator, we don't need chemical initiators in order to cross-link our water and polymer, meaning that we can make up to 95% sheets of water. That water can be an excellent delivery mechanism. We can make it sticky. We can make it non-sticky. We can adjust all sorts of properties using the different polymers and strength of the beam, and we can make very specific performance gels. The one place that we did have a bottleneck, however, was in converting and packaging our product. That would be the question I would always get, and people would say, "Well, how can you handle some of these larger customers?" And the answer was we probably couldn't in the small white room that we had here in our facility.
About a year and a half ago, we bought into one of our largest customers and created a joint venture called CG Converting and Packaging. You can see on the slide. This is the new clean room. We recently expanded their facility in order to handle these large new customers that we have. We added 12,000 sq ft and built the new clean room that you see in this slide. The reason, by the way, that we bought into them instead of building our own facility was mostly risk associated. I'm not a professional packager and converter. You tend to make mistakes in a new business. Also, if the business then doesn't scale the way you think it will, you've actually made the problem worse. This was worse.
So this was a way that we could get the capacity that we needed without taking the risk of creating something that would become a strain on our balance sheet. So there's many applications for hydrogels on the consumer and medical side. And the advantages are that we don't irritate the skin whatsoever. We can make biocompatible gels. We can make conductive gels. And we'll get into more of the specifics of that as we go through the three areas of growth that I talked about. So the first of these is our current medical device pipeline. I kind of refer to these as our aspirational programs. These are applications that we think could be extremely lucrative for the company down the road, but we do this in a very limited way. These are not immediate need or immediate return revenue possibilities.
We basically are building these things to do partnerships with other folks, so, for example, one of the first ones we'll talk about is our surgical drape. We have no interest in going in and competing with 3M and Avery Dennison and the large players that dominate that field. Instead, we show them the product and hope to license it and sell it to them as we develop it, so these are the things that we have in development right now. About a year ago, we released data, sort of proof of concept. We decided to show that we could deliver medications. The first one that we did was diclofenac. We compared ourselves to Voltaren Cream. Voltaren Cream takes about eight hours to reach full dose. You have to apply every four hours. You have to measure it.
We created a patch that got to full dose in about two and a half hours. It doesn't need to be changed. You can wear the patch for up to 24 to 48 hours, depending on the way we dosed it, and it was a very successful project, so we have that data. It taught us a lot about how we do drug delivery, and that led us to the next program that we're working on now. We have 12 patients that we've done very early preclinical proof of concept with apremilast. If you notice on our board of directors, Dr. Jerry Zeldis is on our board of directors. He is the former Chief Medical Officer at Celgene, very familiar with this particular compound.
He had a theory that if you were on one of the biologics or you're taking oral apremilast, you get very good results generally, 80%-90% clear up of lesions. But what about those stubborn lesions that still exist? We think there's great promise in this in that we're not trying to replace something, which would be very difficult to do, but rather it's more of an adjunct therapy where someone could put this patch directly on the lesion. We've done skin retention studies. We've got very good early proof of concept. And this is a program, again, that we don't spend a lot of money on, but we do think it is worth continuing to see what we can make out of it because it may eventually have great value to the company.
One of the first things that we also worked on was our surgical drape, surgical incise drape. We're also now working on another project, which I'll talk about in a second, but the advantage of this is that the current surgical drapes, incise drapes, for those of you who may not be familiar, is where the body is prepped and the drape goes down, and the surgeon will actually cut through the drape, and the drape is there to prevent infection. The problem with that theory is when you get elderly patients with fragile or crepey skin, very dry skin, the removal of that drape can actually cause skin tears, will almost certainly cause the removal of layers of epidermis, and that's kind of counterintuitive to preventing infection. We did an animal study and two cadaver studies. The pictures you see in this slide are from the second cadaver study.
We basically mimicked an open surgery, a spine surgery. We prepped the body the same way, the cadaver. We laid down the drapes. Both drapes performed similarly through the procedure. We opened the patient up all the way down to the spine, irrigated, did everything you'd normally do, and everything was about the same until removal. And it's a very small slide. You may not be able to see it, but on removal, it caused three large skin tears. You can see the skin is discolored. The one on the left is the standard of care, and a lot of skin is removed. Our drape, by comparison, came up very cleanly. There's no skin tears, and you can see the skin is a dark, rich color. It's well moisturized and certainly in a better position to prevent infection. We recently appointed Kip Crecca to our scientific advisory board.
Kip is a medical device specialist. He's very interested in this particular program. We're looking into different applications for adhesive, such as cataract surgery drapes, which is the most done surgery in the U.S., and one of the main issues that patients have with it is the pain and irritation on removal of the drape, as these tend to be elderly patients, very often with sensitive skin. Lots of other potential applications, but again, we have limited resources, so we're going to approach them one or two at a time. Moving on to consumer health and beauty, this is where the next two segments are really where our revenues come from, so consumer health and beauty, we really hadn't planned on that. In late 2020, we released our first product during the pandemic, which was the MEDAGEL HexaGels on Amazon.
We basically went from zero in 2021 to what we're selling today, which is probably at about an $8 million or $9 million a year run rate. We did that both through natural organic growth of the products that were very popular, as well as a couple of key acquisitions. First, we'll talk about the M&A acquisitions. Kenkoderm Skin Line was bought in December of 2023. It was complementary to everything in our ethos, being a gentle-to-the-skin line of soap, conditioner, cream, and shampoo for people with psoriasis. Very gentle-to-the-skin, has a little bit of salicylic acid in it. Very popular product. If you go on Amazon and put in psoriasis, it's usually the first result you'll get. It is the number one psoriasis product on Amazon.
And it fit us because of our whole gentle-to-the-skin ethos, as well as the fact that there's a lot of upside potential for us, we think, in moving this product line into different markets around the world, as well as creating line extensions for this moving into other indications. Silly George is a product brand that we bought in May of this year. When we bought it, we announced that it was on an annual run rate of $2 million, which it was. We were able to put our teams on it. We now have very, very efficient Amazon, Facebook, Meta teams to try to optimize the advertising. They also had a new product coming out, and we've recently announced that it's now on a $5 million run rate from the $2 million run rate. We are about to try and move the product into some new platforms.
We're launching our TikTok campaign shortly, and this company comes with a social media following of about 89,000 Facebook and Instagram followers, and more importantly, 254,000 active emails, 750,000 in total, but 250 that are active. In beauty and cosmetics, that communication, in fact, in all the consumer brands, that communication that you have with your customer base, the ability to talk to them and tell them about new things is really important. We like to think of the email list as the lifeblood of the company, and everything else kind of revolves around that, so one of the key products that we have on the MEDAGEL side is our flagship product, SilverSeal. SilverSeal is an FDA-cleared 510(k) wound care product. It is 94% water with 1.5% ionized silver. It is an outstanding product. It is the number one burn product that is a patch on Amazon.
It's number five overall, but the first four are creams. It has very, very high reviews. Everybody loves it. We have data that it kills staph, MRSA, and strep. We did a study which we think will open up some cosmetic surgery opportunities for us, showing that in a 44-patient double-blinded study, it reduced the incidence of scarring, the appearance, the width, the length. It reduced pain in the patients. The mechanism of action for reduction of pain is really quite simple. I don't know how many of you out there have ever burned your finger pretty badly, but if you take that burnt finger and put it in a glass of water, the pain goes away. And then when you remove it from the water, the water begins to evaporate, and the throbbing returns. The water blocks the pain signal.
This patch being 94% water is like putting your finger in the glass and never taking it out. So it has a lot of great applications. Why it's doing so well on Amazon. But recently, we concluded a deal with the Cintas Corporation. Cintas, for those of you who may not be familiar, has the third largest truck fleet in the United States. They supply uniforms and supplies to businesses all across the U.S. and Canada. They will be putting SilverSeal in all of the kits that they have around the country. That deal has started in Q4. We've begun shipping them product. So that revenue will be realized in Q4 and beyond.
We think that's important to us, not only from a revenue standpoint, which is obviously very significant for a company of our size, but also because being in all of those locations, we think will really help that brand. So obviously, think about if you get burnt at work or cut yourself at work, and you go into that medicine cabinet and you pull out a product that says SilverSeal on it, and you use it and you like it, there is significance to you the next time you're walking down the aisle in a drugstore or searching for something on Amazon. Another big opportunity that we're very excited about in the future is our relationship with AbbVie. AbbVie purchased a company called Soliton for $550 million to acquire a machine called the Resonic.
The Resonic is a cellulite treatment that is FDA-approved that reduces the appearance of cellulite long-term for more than a year. Again, they paid $550 million for it. They are getting ready to launch it. The device requires the use of at least two gel pads that have to be high water content, biocompatible, all stuff that we are uniquely suited to make. So we will essentially be the razor blade or one of the razor blades in the AbbVie device. We expect the AbbVie revenue, based on what they've told us, to begin in Q1 of 2025. It will be a soft launch, and the revenues will start then. And then the true launch comes probably in the second half of the year. Again, I'm not completely privy to all of AbbVie's plans, but they have given us some estimates, and the revenue could be quite significant.
So a very exciting opportunity there. So we've been seeing steady revenue growth across all of our sectors. MEDAGEL as a brand is growing. Kenkoderm has been growing. Silly George, obviously, has had great success this year. We're also seeing growth in contract manufacturing with the onboarding of a lot of large new customers. Probably the largest this year of those will be Cintas, which we haven't actually seen or realized yet. That'll be coming in fourth quarter and beyond. So as you see, we've grown from $1.08 million all the way to last quarter, where we announced $2.94 million in sales. It is a huge priority for this company to get to cash flow positivity. I'm a big believer that you are playing defense as a public company until you get there.
We made a very strong move towards that goal in Q3 by lowering our adjusted EBITDA loss down from $730,000 down to $326,000 Q2 over Q3, or Q3 over Q2, rather. And we continue that trend to continue, particularly as some of these larger companies like Cintas, like AbbVie begin to kick in as we move into 2025. I've said many times on our previous conference calls that these are not the only opportunities out there. These sorts of companies, onboarding a company the size of an AbbVie or an Owens & Minor or Cintas requires time. There's a lot of testing and checkboxes that you have to go through to become an approved vendor for companies like this. So it doesn't happen quickly, but we're always working on several opportunities, and I can assure all of you that there will be more as we move into 2025 and beyond.
That concludes the presentation part. We have about 10 minutes left for questions. If anybody has any, I'm happy to take questions at this time. The first question I see is, does NEXGEL own the Pennsylvania property? No, we do not. But one of the first things that I did as CEO was negotiate a long-term 20-year lease extension. So we still have, I think, about 20 or 19 years left on the lease. I could be a year off on that, but we do have a long-term situation here, so we're not going anywhere in the near future. The next question is, I cannot believe you're right in our backyard. Oh, that's just more of please follow up. So those are the questions. Let's see if there's any more down here. What new platforms is Silly George going to?
So there's a number of places that a brand, especially a beauty brand, tends to grow and expand. The first platform that we'll be moving on to is TikTok and the TikTok Shop. We recently got our TikTok Shop approved. There are other live-selling platforms like that. Obviously, we are concerned with all of the potential controversy going around TikTok, so we kind of have to do that in a careful way. But assuming that TikTok will survive, it is literally now becoming the third platform. So we've done a lot of research on other beauty brands and even other lash brands that sell less than us on platforms like Amazon and Shopify, but are selling very large numbers on TikTok.
So it's a place that, assuming TikTok survives, we absolutely have to be, but we're going to treat it a little bit cautiously until we see the end result of what's going on at TikTok. And obviously, the next step is retail. At some point, this is a product that needs to be in the Sephora's and the Ulta's. That probably also involves some measure of television advertising and support, as well as co-op advertising. That's not inexpensive, and we're going to take that gamble when we know a little bit more about our product, and we feel very confident in moving in that direction. So that's all the questions I have so far. If there are no more, I'll turn it back over to Jenny, but thank you all for your time and attention, and I appreciate you all showing up today. Thank you.
Thank you very much, Adam.
This does conclude NEXGEL Incorporated's presentation. You may now disconnect. Please consult the conference agenda for the next presenting company.