|View printer-friendly version|
|A Letter From the ChromaDex Chief Executive Officer|
Dear Fellow Shareholders:
Ten years ago, we had the foresight to identify nicotinamide riboside (NR), a form of Vitamin B3, as a potential blockbuster in the emerging category of NAD+ precursors. Importantly, we were able to acquire all of the significant IP surrounding NR and register the tradename NIAGEN®.
We now find
In fact, our commercialization of NIAGEN® nicotinamide riboside (NR) in mid-2013 may one day be looked upon as a seminal event in the advancement of healthy aging.
Even with all of our early success, I firmly believe that we are in the bottom of the first inning with respect to the commercial potential of NIAGEN® as the vitamin of healthy aging.
To the general population, NIAGEN® is still largely unknown. And with respect to the investment community, it is both relatively unknown and, in my opinion, underappreciated. Consequently, I believe our Company is significantly undervalued.
In this letter, I will briefly review 2015, our best year ever, and more importantly our prospects and opportunities to create and maximize shareholder value. I will also use this letter to better educate you on the enormous opportunity we see with our lead ingredient, NIAGEN®, the first and only commercially available form of NR which is supported by five patents issued and several pending.
2015 was a breakout year for ChromaDex. In November, we reported our 6th consecutive quarter of record revenue, as sales increased 52% to
In Q3 2015, the ingredients segment generated record net sales of
In November, we made one of the most significant announcements in our history - a joint development agreement with The
We believe we have a number of additional opportunities to partner with other Fortune 500 companies, like P&G.
As we move into 2016, we see significant opportunity for NIAGEN® to be included as a feature ingredient in a growing number of food, beverage and nutritional supplement products.
As a significant driver for the mainstream commercialization of NIAGEN® in both food & beverage and dietary supplements, we announced recently two important regulatory successes for NIAGEN® - New Dietary Ingredient Notification (NDIN) status from the
Understanding NR as an Effective NAD+ Precursor
NIAGEN® is ChromaDex’s branded nicotinamide riboside (NR), a lesser-known form of vitamin B3. Trace amounts of NR can be found in a number of foods, such as milk and beer, but no food provides significant levels of NR.
NR’s most important bodily attribute, and what makes it so unique, is its ability to increase production of the co-enzyme NAD+ in the blood. In
An abundance of published studies from esteemed researchers and institutions have demonstrated the potential health and therapeutic benefits of NR as a precursor to NAD+.
Our vision is that NIAGEN® will become part of an important nutrient deficiency story similar to Vitamin C, Vitamin D, folic acid and Omega-3 fatty acids. Ingredients that address significant nutrient deficiencies are among the largest ingredient markets and are often fortified in the food supply in everyday products such as milk, bread, juices, cereal, and baby formula.
NAD+ is arguably the most important cellular co-factor required for improvement of mitochondrial performance and function of every cell in the human body. As we age, NAD+ levels decline, which in turn leads to mitochondrial dysfunction and poor cellular energy metabolism. Scientists have now shown that depletion of NAD+ results in numerous age-related health issues.
History has shown that age itself is the greatest risk for contracting nearly every major disease. Yet research has continuously focused on the distinct diseases, rather than studying the correlation between age and disease.
However, in recent years there has been an enormous increase in research studying the science of aging as well as understanding the relationship between aging and age-related diseases. The term “Healthspan” has been created to describe the span of time we spend free of the costly and harmful conditions of old age, like cancers, dementia, and chronic diseases.
Healthy aging is also attracting large commercial interest, including from
Researchers around the world have been publishing findings that it is possible to dramatically extend Healthspan by avoiding or delaying the onset of serious diseases of age. Many of those studies are specifically citing the cause and effect relationship between depletion of NAD+ as we age and age-related disease.
The Science issue also provided a list of Geroscience interventions with translational potential, among which was “NAD precursors and sirtuin activators” and it goes on to specifically name nicotinamide riboside as one such NAD precursor.
Also among the list was “Mitochondrial-targeted therapeutics” in which “mitochondrial dysfunction is a major contributor to aging and age-related disease. Attention is now being given to interventions that augment mitochondrial function, including NAD precursors.”
This is just a very small instance of the wave of the research and public discourse which clearly link NAD+ depletion to both aging and age-related diseases and conversely, the ability to extend Healthspan by avoiding or delaying the onset of serious diseases of age by increasing the production of NAD+ with NAD+ precursors.
The myriad of age-related research studies and publications regarding NAD+ levels clearly puts
It is worth the time of every
As we move into 2016 and beyond, we expect to see a growing number of age-related consumer products brought to market that feature NIAGEN®.
Potential for Nicotinamide Riboside as a Drug
The avenue for NR to create the most substantial value for
We have been working closely with the NIH on a therapeutic indication for NR as a treatment of a rare pediatric orphan disease, Cockayne Syndrome. We expect to file an IND application with the
Heading into 2016, I am happy to report that
We recognize the need to increase awareness of NIAGEN® by the consuming public, as well as to increase awareness of
For investors, as the momentum grows for drugs and nutrients that address aging with NAD+ precursors, owning shares in
I am more convinced than ever we have an extraordinary opportunity to create substantial shareholder value with our patented NIAGEN® nicotinamide riboside. A new vitamin of this magnitude is the type of opportunity that comes along once every 25+ years. All of the important pieces of the puzzle – peer reviewed science, media attention to the NAD+ story, and the rise of the treatment of aging as disease - are creating a perfect storm for NIAGEN® to become the next billion dollar ingredient.
On behalf of
Happy New Year,
Founder & CEO
This 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 and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in
ChromaDex Company Contact: