ChromaDex(CDXC)2024-08-08 11:02Financial Data and Key Metrics - The company reported 15,000 net loss [6] - Adjusted EBITDA was 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 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 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 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]