On Monday, ChromaDex Corporation (NASDAQ:CDXC) sustained a Buy rating and a $6.00 price target from H.C. Wainwright. The firm's endorsement follows ChromaDex's announcement last month of the release of Niagen+, a pharmaceutical-grade NIAGEN (nicotinamide riboside chloride or NRC) product.
Niagen+ has been authorized by the FDA for compounding by 503B outsourcing facilities, making it available in various forms such as intravenous (IV), shot, and push exclusively at clinics with a prescription.
ChromaDex is positioned to become the first U.S. company to offer an ingredient as both a direct-to-consumer dietary supplement and as an intravenous and injectable pharmaceutical-grade product.
Their dietary supplement, globally available as TRU NIAGEN, and the soon-to-be-released injectable product, will debut in limited quantities at select clinics starting in August 2024. The company plans to expand availability for shipping to additional clinics nationwide.
The protection of Niagen+ is reinforced by various patents, including a pending patent for the use of NRC and other NAD+ precursors in intravenous applications. This extensive protection is a strategic move to secure ChromaDex's position in the market.
The analyst from H.C. Wainwright highlighted the potential for NIAGEN IV to penetrate the global intravenous hydration therapy market, which was valued at $2.32 billion globally and $1.15 billion in North America as of 2022. The NAD+ IV market, where ChromaDex estimates a value of over $100 million in North America alone for 2023, presents a significant opportunity for the company's new 2024 vertical.
ChromaDex's strategy to make pharmaceutical-grade Niagen available in clinics across the nation is a key factor in H.C. Wainwright's reiteration of their Buy rating and 12-month price target of $6 per share.
In other recent news, ChromaDex Corporation reported a positive start to 2024 with Q1 revenues of $22.2 million and a positive adjusted EBITDA of $0.7 million. A key revenue driver was the company's e-commerce sector, witnessing a 5% sales increase year over year.
Additionally, strategic retail partnerships with Sprouts Farmers (NASDAQ:SFM) Market and Vitamin Shoppe were announced, aimed at enhancing the distribution of its flagship product, Tru Niagen.
Despite reporting an operating loss of $0.7 million, ChromaDex maintains a solid financial position with no debt and a cash reserve of $27.6 million. The company also plans to ramp up its research and development efforts, with expectations of at least 16% revenue growth for the year.
In terms of future expectations, ChromaDex anticipates heavier investments in R&D during the first half of the year and projects an overall annual growth of 16%. The company is also exploring new partnerships and product launches.
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