For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ChromaDex (CDXC) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question. ChromaDex is a member of our Medical group, which includes 1025 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sec ...

The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ChromaDex (CDXC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. ChromaDex is one of 1015 individual stocks in the Medical sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Se ...

Financial Data and Key Metrics - The company reported $22.7 million in revenue for Q2 2024, a 12% year-over-year increase, with a near breakeven net income of a $15,000 net loss [6] - Adjusted EBITDA was $1.6 million, marking the fifth consecutive quarter of positive adjusted EBITDA [6] - The company ended the quarter with $27.9 million in cash and no debt [7] - Gross margins remained strong at 60.2%, slightly down from 60.8% in Q2 2023 [26] - Operating loss improved to $0.3 million from $2.3 million in Q2 2023, driven by higher net sales and lower operating expenses [28] Business Line Data and Key Metrics - E-commerce revenue remained stable at $13 million, continuing to be the largest and most consistent revenue source [16] - TRU Niagen sales increased by 10%, while combined Watsons and other B2B sales grew by 44% [25] - Niagen Plus product line was launched, featuring pharmaceutical-grade Niagen in IV and injectable forms, targeting a global market valued at over $2 billion [8][9] - The company introduced the Niagen Plus NAD test kit, exclusively for healthcare practitioners to measure NAD levels [10] Market Data and Key Metrics - The NAD IV market in the U.S. is estimated to be between $100 million and $150 million, with the company targeting more than 50% market share [46][47] - The company is expanding its presence in China, where NMN sales have dropped dramatically, but TRU Niagen has not yet seen significant growth [59][60] Company Strategy and Industry Competition - The company is focusing on innovation, with the launch of Niagen Plus and the development of new NAD precursors [10][27] - ChromaDex is committed to maintaining fiscal discipline while supporting upcoming launches and key initiatives [6] - The company is addressing competition from brands promoting NAD-boosting products that do not meet their claims, emphasizing Niagen's superior quality [19] Management Commentary on Operating Environment and Future Outlook - Management highlighted the potential of Niagen IV to expand the NAD IV market due to its superior tolerability and faster infusion times [8][42] - The company anticipates 10% to 15% year-over-year growth for 2024, driven by e-commerce, partnerships, and the launch of Niagen IV [29] - Management expressed optimism about the potential therapeutic benefits of NR in treating Parkinson's disease and Ataxia Telangiectasia [12][13][83] Other Important Information - The company received orphan drug designation from the U.S. FDA for NR as a candidate for treating Ataxia Telangiectasia [12] - A new patent was granted in Europe for the use of nicotinamide riboside in the treatment of Parkinson's disease [13] - The company is collaborating with Nestle Health Science to integrate Niagen into their brands, including the launch of NR Longevity [21] Q&A Session Summary Question: Adoption of Niagen Plus and Market Share Expectations - The company expects to capture more than 50% market share due to Niagen's superior product quality, but supply chain challenges have delayed the rollout [34][39] - Initial shipments of Niagen IV are limited, with a larger batch expected in October [39] Question: Pricing and Gross Margin Impact of Niagen IV - Niagen IV is priced slightly higher than existing NAD IV products, with margins higher than the company's corporate margin, expected to positively impact gross margins [57] Question: Timing and Impact of Niagen Plus Rollout - The delay in Niagen Plus rollout is not expected to impact the company's mid-2025 expectations for revenue or spending [64] Question: Market Expansion Potential for Niagen IV - The existing NAD IV market has not been growing, but the company believes Niagen IV could expand the market due to its superior product experience [66][68] Question: Regulatory Process for Ataxia Telangiectasia (AT) and Cockayne Syndrome - The regulatory process for AT is further along than Cockayne Syndrome, with human clinical studies already conducted for AT [48][49] Question: B2B Sales Growth and Order Patterns - B2B sales growth of 44% is partly driven by a customer aggressively marketing a combination product featuring Niagen on Amazon [52][53] Question: Green Hat Approval in China - The company has not seen any changes in the outlook for Green Hat approval in China, despite the decline in NMN sales [75] Question: Launch Timeline for Injectable Products - Injectable products for clinics are expected to be available in 2-3 months, with at-home injectable products potentially launching by the end of 2024 or early 2025 [78] Question: Addressable Market for Parkinson's Disease - If the Phase III NO-PARK study yields positive results, the company sees a significant opportunity to market Niagen as a dietary supplement to Parkinson's patients, with a global addressable market of approximately 10 million patients [83][85]

| --- | --- | |-----------------------|-------| | | | | ChromaDex | | | | | | | | | Earnings Presentation | | | Second Quarter 2024 | | Rob Fried Chief Executive Officer James Lee Interim Chief Financial Officer Andrew Shao SVP Scientific & Regulatory Affairs Nasdaq: CDXC | August 7, 2024 SAFE HARBOR STATEMENT 2 This presentation and other written or oral statements made from time to time by representatives of ChromaDex contain "forward-looking statements" within the meaning of Section 27A of the Securities ...

ChromaDex (CDXC) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this natural products company would post a loss of $0.03 per share when it actually produced a loss of $0.01, delivering a surprise of 66.67%. Over the last four quarters, the company ha ...

ChromaDex Corporation Reports Second Quarter 2024 Financial Results Total net sales of $22.7 million, up 12% year-over-year, gross margin of 60.2%, lower operating expenses, resulting in approximately breakeven net loss and positive Adjusted EBITDA of $1.6 million for the three months ended June 30, 2024. LOS ANGELES, CA - August 7, 2024 - ChromaDex Corp. (NASDAQ:CDXC) today announced financial results for the second quarter of 2024. Second Quarter 2024 Financial and Recent Operational Highlights • Total ne ...

Financial Performance - Net sales for the three months ended June 30, 2024, increased by 12% to $22.7 million compared to $20.3 million in the same period in 2023[117][118] - Net loss for the three months ended June 30, 2024, improved to $15,000 from a net loss of $2.2 million in the same period in 2023[117] - Total cost of sales for the three months ended June 30, 2024, was $9.0 million, representing 40% of net sales, consistent with the same period in 2023[121] - Total gross profit increased by 11% to $13.69 million for the three months ended June 30, 2024, and by 5% to $27.15 million for the six months ended June 30, 2024[124] - Net cash provided by operating activities was $31,000 for the six months ended June 30, 2024, a significant decrease from $6.1 million in the same period in 2023[135] - Cash used in investing activities was $53,000 for the six months ended June 30, 2024, compared to $96,000 in the same period in 2023[136] - Cash provided by financing activities was $0.6 million for the six months ended June 30, 2024, driven by proceeds from the exercise of stock options[137] Segment Performance - Consumer Products segment sales grew by 10% to $18.6 million for the three months ended June 30, 2024, driven by higher sales to distributor partners and e-commerce[118] - Ingredients segment sales increased by 22% to $3.3 million for the three months ended June 30, 2024, primarily due to timing of sales and increased demand for Niagen®[118][119] - Analytical Reference Standards and Services segment sales remained stable at $791,000 for the three months ended June 30, 2024, with a slight 9% increase compared to the same period in 2023[118] - Gross profit for the consumer products segment increased by 9% to $11.86 million for the three months ended June 30, 2024, and by 4% to $23.06 million for the six months ended June 30, 2024[124] - Cost of sales as a percentage of net sales remained relatively stable for the three and six months ended June 30, 2024, compared to the same periods in 2023, with the analytical reference standards and services segment showing a 1,600 basis points improvement[123] Expenses and Costs - Sales and marketing expenses for the consumer products segment improved by 300 basis points for the six months ended June 30, 2024, compared to the same period in 2023[125] - R&D expenses increased by 33% to $3.41 million for the six months ended June 30, 2024, driven by strategic initiatives including Niagen+ development[127] - General and administrative expenses decreased by 22% to $5.66 million for the three months ended June 30, 2024, and by 20% to $11.02 million for the six months ended June 30, 2024[128] Cash and Liquidity - Cash and cash equivalents as of June 30, 2024, totaled $27.9 million, with $27.7 million being unrestricted, sufficient to meet financial obligations for the next twelve months[114] - The company anticipates seeking additional capital within the next twelve months to fund projected operating plans and long-term strategic objectives[114] - The company had cash and cash equivalents of $27.9 million as of June 30, 2024, with no outstanding borrowings under its line of credit[134] Research and Development - The company has over 275 research partnerships through its ChromaDex External Research Program (CERP®), advancing the understanding of NAD+ in health and aging[111] - Niagen+ product line, launched in 2024, has not yet had a material impact on the company's results of operations[108] Internal Controls and Legal Proceedings - The company's disclosure controls and procedures were evaluated and found effective at the reasonable assurance level as of June 30, 2024[140] - No changes in internal control over financial reporting occurred during the company's second fiscal quarter that materially affected or are likely to materially affect the internal control[141] - Legal proceedings are described in Note 10, Commitments and Contingencies, Legal Proceedings in the Notes to the Unaudited Condensed Consolidated Financial Statements[142]

A great deal has happened since my last ChromaDex Corporation (NASDAQ:CDXC) article, where I highlighted how the company is a leader in the development of nicotinamide adenine dinucleotide (NAD+) for healthy aging utilizing their product, Tru Niagen. I also discussed how ChromaDex was reporting strong growth, improving gross margins, and had an attractive 1.3x price-to-sales valuation. As a result, I put CDXC on my watch list for inclusion in the "Bio Boom" speculative portfolio. Unfortunately, market condi ...

ChromaDex's (CDXC) shares jumped 11.9% on Jun 7 after the company announced that the FDA has granted the Orphan Drug Designation (ODD) and Rare Pediatric Disease (RPD) Designation to its investigational candidate, nicotinamide riboside chloride (NRC), to treat ataxia telangiectasia (AT). The company is currently gearing up to file an investigational new drug (IND) application for NRC with the FDA to treat AT. Subject to IND clearance, ChromaDex will begin evaluating the candidate in human clinical studies. ...

Financial Data and Key Metrics - Q1 2024 revenue was $22 2 million, a 2% decline compared to Q1 2023, primarily driven by a 17% reduction in combined Watsons and other B2B sales [19] - Gross margins increased by 80 basis points to 60 7% compared to 59 9% in Q1 2023, driven by shifts in business mix with e-commerce sales constituting 58% of total net sales [20] - Adjusted EBITDA was positive at $0 7 million, marking the fourth consecutive quarter of positive adjusted EBITDA [13] - Net loss attributable to common stockholders for Q1 2024 was $0 5 million or a loss of $0 01 per share, compared to a net loss of $1 9 million and a loss of $0 03 per share in Q1 2023 [21] - The company ended Q1 with $27 6 million in cash and no debt [22] Business Line Data and Key Metrics - E-commerce sales grew 5% year-over-year in Q1 2024, continuing to be the largest and most reliable revenue source [14] - Tru Niagen sales declined 2% year-over-year, while Niagen ingredient sales grew moderately by $0 2 million, offset by a decline in sales of other ingredients [19] - The company is focusing on building a robust base of subscribers and optimizing influencer marketing, retention strategies, and social media presence [15] Market Data and Key Metrics - The company announced partnerships with Sprouts Farmers Market and Vitamin Shoppe, expanding Tru Niagen's availability to over 400 Sprouts locations and 700 Vitamin Shoppe locations [15] - Retail margins are lower than e-commerce margins, but pricing will be comparable [5] - The company expects a strong second half of 2024, with revenue ramping up due to new product launches and partnerships [23] Company Strategy and Industry Competition - The company is investing heavily in R&D, with Q1 R&D expenses increasing by $0 9 million year-over-year, primarily for new verticals and NAD precursor development [21] - ChromaDex positions itself as the gold standard in the NAD industry, with over 30 peer-reviewed human studies and 100 published scientific studies [16] - The company is exploring new verticals beyond dietary supplements, including skincare and pet supplements, with potential launches in the US [17] Management Commentary on Operating Environment and Future Outlook - Management reiterated full-year revenue growth guidance of at least 16%, driven by new verticals, partnerships, and product launches [1] - The company expects heavier investments in the first half of 2024, particularly in R&D, with moderation in the second half [23] - Management is optimistic about the momentum built in Q1 and new revenue opportunities expected later in 2024 [23] Other Important Information - The company is involved in ongoing litigation with Elysium, with a potential liability disclosed in the 10-Q report, though no significant impact is expected on 2024 financials [22] - ChromaDex is working on expanding cross-border sales of Tru Niagen into China, with potential partnerships and product expansions [28] Q&A Session Summary Question: Revenue Growth and New Product Launches - Management confirmed that new product revenue will ramp up in the second half of 2024, with no significant acceleration expected in Q2 [1][3] Question: Retail Partnerships and Margins - Retail margins are lower than e-commerce margins, but pricing will be comparable [5] - The company is focusing on specialty retailers like Vitamin Shoppe and Sprouts, which align well with the Tru Niagen customer base and require less advertising investment [4] Question: R&D Expenses and New Vertical Development - R&D expenses increased by $0 9 million year-over-year, primarily for new verticals and NAD precursor development, with similar heavy investments expected in Q2 [6] Question: Gross Margin Evolution and E-commerce Contribution - Gross margins are trending between 60% and 61%, with higher margins in quarters with a higher e-commerce mix [33] - E-commerce margins are in the low 70s, while B2B margins are in the low to mid-50s [33] Question: Higher Dosage Forms of Tru Niagen - The 1,000 milligram SKU has been successful, with demand from both existing and new customers, and is expected to be revenue accretive [34][60] Question: Legal Spending and Litigation Impact - The potential liability from the Elysium litigation is not expected to significantly impact 2024 legal spending [41] Question: Retention Rates for 1,000 Milligram SKU - Early indications suggest higher retention rates for the 1,000 milligram SKU compared to other SKUs, though it is still early in the product lifecycle [66] Question: Vitamin Shoppe and Sprouts Distribution - Tru Niagen will be available in 700 Vitamin Shoppe stores and over 400 Sprouts locations, with revenue recognized in Q1 2024 [68]