CDXC - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to ChromaDex Corporation's Fourth Quarter of 2024 Earnings Conference Call. My name is Pia, and I will be your conference operator today. [Operator Instructions] As a reminder, this conference call is being recorded.

This afternoon, ChromaDex issued a news release announcing the company's financial results for the fourth quarter of 2024.

If you have not reviewed this information, both are available within the Investor Relations section of ChromaDex's website at www.chromadex.com. to of conference Lytham like Shamsian to now President Vice Partners. would turn over the Ben I Please go ahead, Mr. Shamsian.

Ben Shamsian

are Call. Thank who call you. Quarter us Rob Conference Fourth President Financial Senior Shao, Officer, Scientific ChromaDex to Executive Ozan Q&A. today Fried; for With Pamir; Chief Good afternoon, Andrew of and the and XXXX Regulatory will welcome Dr. ChromaDex's join Officer, Chief Vice and Corporation's of Results Affairs

to interest include and NIAGEN forward-looking regulatory future and and opportunities statements, trials, Today's and of of products ChromaDex's the results opportunities, conference ingredients related plans timing as well business research expansion and statements financial the the call as results trial in clinical sale may filings, operations. needs, the new anticipated future cash development including development investor business markets, such timing results and of prospects and performance, of of operating

results on Form well from most and economic in activities factors and the anticipated ChromaDex's global as markets our recently or this risk Forward-looking matters cause statements results Many to are and Because to filed not differ business. the on subject intended company's statements impact materially operations, are statements. XX-K future including forward-looking estimates represent occurred, these could date cash yet in SEC, reports uncertainties. the of condition, only quarterly These have and inherently risks give ChromaDex's to assurance relate conditions flows factors actual actual as results conference activities on include contained with forward-looking and not results. to call that to any financial those statements of the as

as any after no results this Please the expectations. obligation date assumes statements or conform to to company of note with changes to its forward-looking forward-looking that in statements update conference call the the

afternoon call press in are financial which were certain addition, presented and this earnings measures. issued to information the present the company's release, earnings website company's financial measures. presentation referenced reconciliations this available non-GAAP on In The appropriate

being at section via The at is Finally, available www.chromadex.com. this webcast. Investor will Relations call be webcast conference recorded of our website the

my With to Officer, over that, Executive Rob pleasure the it's call Fried. our to turn now Chief

Robert Fried

fourth and $XX.X revenues record welcome, million, year-over-year everybody. a increase you, delivered million. In income and of the Ben, quarter, XX% we Thank of $X.X net

net cash and For $X.X year-over-year net the we we with million. in $XX.X operations debt. full and XXXX, generated year million growth from year, and $XX.X of a no delivered income million, ended of XX% cash the million in We flow in $XX.X positive revenues

the of the on fact net most with is the that catching and increase $XX.X effective in damaged e-commerce fourth the XX% is growth experienced world year-over-year. our quarter, cells. to robust appears In to organic particularly channel importance NAD of finally million, It the increase that NAD a way sales levels, safest and NIAGEN

food Our of net had business grade ingredients sales year-over-year. and XX% a $X.X NIAGEN increase pharmaceutical grade million,

remained distribution NIAGEN through like partners partners, our consistently Watsons [indiscernible] solid. strategic

some never dangerous to encouraged processes and We see endotoxins; conducted practices. There that companies activity. grow, be claim for of dangerous label continues the this do arena to make the that are the misleading pursue companies hard-earned knowingly other see proliferation companies false but patents As science-based that claims; that we're Amazon single introduced marketplaces There steps entering manufacturing that on hope companies of to who are to seeing swapping have boosting to We're taken police infringe demand NAD others. study. a products companies and more. have a

on awareness We And be we'd give screening see also brands. vigilant more prevent experts. more to to need a taken and deceiving on to We the supplement and see in to the say drive newsletters by the companies as position our podcasts or label. candid, from advice FDA product personally to action We not To the and use be FTC excellence. like plan not to consumer ChromaDex industry did consumers. I take leader safety that to a NIAGEN the would in

August, at clinics injections delayed to The supply very pharmaceutical issues pharmacy quickly grade we we line in NIAGEN our NIAGEN+ months the due network. and But product IV with X started launched pharmaceutical introduced availability. Last strong compound X out. through selling and grade in a chain, ingredient launch off were to

have these We resolved now since issues.

clinics ChromaDex in NIAGEN second XXX initiated an pace the use the the and injections NIAGEN on effort NR ataxia drug year. part new is nationwide. FDA telangiectasia, of treatment Last of with the of NIAGEN are year, company's communication growth of in ATA. application the as available IV Today, in pursue for investigational about great half IV this to for

We NR last continue June. comments to agency and With regard enrolled feedback. participant the of for to the use of in NO-PARK work address the the last its Parkinson's disease, to the was with study its treatment

by will of year. completed expect we study June the this that So be

We results and on will more see for thereafter, plans we this the time in to much able but very be pharmaceutical sharing forward some not to other updates look near future.

year direction we weeks, has major changing a mission. right undertaking be company we finally the the this making with to for will our this announcement believe an company change it the that better company's internally, inflection align evolution that company. represent to I the name This to time name and past and an the better are company coming our the of point is of and the we're marks been share name. excited strategic to In the

In summary, your company is healthy.

future. positioned company your is is company well Your growing the very for and

now Ozan? it to Let's turn Ozan. over

Ozan Pamir

company financial ChromaDex that all company vision committed so year and It's the is exceeded who to team ago, this on a team's Rob. us and was months a a by investors, as Having part employees be its speak to here deeply to XXXX with been today. clear of few dedication partners strong to impressed ChromaDex driving excellence. joined forward. a the our just pleasure Thank are I've innovation targets privilege and It a the is for outlook. you,

As and financial XXXX, was full quarter pivotal in both Rob performance delivered of strategic while the outstanding past mentioned, this fourth key initiatives. advancing even momentum for year greater In year building success. we

Before the moment to diving I into year full a quarter, performance. take highlight want to the details of our

increase total is a and $X.X outlook administrative million of of year, expenses loss general cash For and $XX.X delivered a we $XX.X efficiency. we generated R&D sharp net $X.X from XX% our XXX $X.X million. year-over-year, net million, Selling than down Gross better a approximately reflecting year the percentage net million a operational sales, sales million XX.X% expense and $X.X continued full year-over-year points investments in of basis and increase. marketing margins the of a of an in as decrease fiscal turnaround achieved flows. And $X.X of for of income of operating million, million XXXX in net down

the and operational cost are focused diligent and execution. company's future resource a and to in invest efficiency, the growth, continuing strong Through results to all business. driven of testament financial allocation, strategic and management have profitability while enhanced innovation we discipline Our improved our

performance. quarter up to let's of Now ChromaDex the XXXX. financial fourth of review $XX.X fourth million, achieved total the XX% compared sales net quarter

e-commerce, increased and Our other growth by XX%, XX% by TRU related driven BXB and sales in Watsons in a sales. combined NIAGEN XX% increase a

grade NIAGEN total increased including and XX%. food sales, pharmaceutical grade ingredient Our by

initiatives. in This compared in Gross points higher product improvement margins mix the improved to XXXX. changes and attributable driven by quarter driven savings e-commerce pharmaceutical to improvements NIAGEN+ to NIAGEN and other of in XX.X% is costs in our due sales support XX% operational additional sales XXX chain fourth and fixed of to and supply grade efficiencies expansion by basis by scale, to business

new of a grow compared of our investments improved expenses basis quarter advanced development to largely and sales as to precursors. NAD in development expense to points Selling make and year-over-year XXXX XX net channels the efficiently. to marketing steadily we stable were percentage continue sales as we XX.X% fourth measured as Research XX.X% of

decreased reported, million, our driven and $X.X administrative royalties of expenses by a As reversal with million related to and $X.X Gartner. general fees agreement by

that supplemental Elysium, the losses we a million with XXXX. payment legal XXXX, bad December these the obligations credit initial from agreement announced with off and recovering in written Dartmouth $X.X settlement following recovery waived debt of In a

second first The expected is quarter of final the and in payment this year.

quarter we in Total quarter increase in was income share, period. approximately the income a XXXX. $X.X quarter net fourth million versus fourth earnings million year or $XXX,XXX substantial million of from of delivered operating operating fourth or XXXX, the loss the in share a per per $X.X of $X.X earnings the In $X.XX breakeven prior

balance cash Moving sheet to the flow. and

than balance is sheet Our ever. stronger

year's our and of and higher this the a of sheet our $XX.X growth, balance equity, As lower result liabilities no with resilience reflects stability financial debt, reinforcing of million cash higher business. a balance

The provisions in was increase by primarily losses, credit of recovery provisions $XX.X partially For settlement net improvement $X.X income, and accrued cash $XX.X for the million $X.X provided reflecting full from year. our prior XXXX, reversal in legal by up than million driven lower royalties the the million, by year. from the prior as a rather operations year of was the offset million in net losses a million $X.X in

contributed changes improvement by overall cash the various Additionally, capital in to net provided operations. working in

financial Finally, I be our would like the slide found year metrics outlook. earnings release, XXXX in information on press presentation. can Detailed with full along to key share our

progress expansion growth further XXXX relates reflects year our built pharmaceutical chain modest it year-over-year. ingredient grade in we execute margins continue improvement supply ongoing we momentum XX% last cost-saving net expect year, and approximately full on e-commerce growth the outlook As in business, We initiatives. maintain to a in gross established our anticipate to sales, continued and we to as partnerships business. in our optimization projecting This

marketing percentage sales, absolute remain and but as expenses was in Selling XX.X% which dollars, year-over-year increase a will net stable XXXX. to are expected of in

name precursor year-over-year will sales change our in expenses time, to marketing the while of our the be operational innovation pipeline. expected As stable drive At to in invest we percentage also efficiency. support weeks announcing mentioned, resources continue absolute are to targeted remaining net we while dollars, the increase at development to Rob investments in rebrand. will with support to continue a company as X% investing same NAD coming maintaining sales as R&D we growth in

administrative are load primarily reverse and and of royalties to million absence increase General to the expected and earlier. $X investments related million $X approximately expenses Dartmouth the to to mentioned fees business I in by that growth due

growth into that profitable The defining discipline. carry In beyond. to through driving we financial than it ChromaDex, operational summary, and I'm of a can the fiscal stronger momentum ever been, company's and was and position has XXXX excellence is continue XXXX confident

questions. take him align the mentioned here exciting Operator, direction, forward be earlier, to ready and rest announcement look better the weeks. changing mission with leaders I the Rob share of name we joining to As company's to coming ChromaDex now in we to of the are will and and soon strategic the the

Operator

[Operator question first Instructions] of Ladenburg Thalmann. Cohen the line comes with Your from Jeffrey

Jeffrey Cohen

firstly, about a the pricing? you So little milligram in as stick talk size a pack what's of give or sense of on any bit us as your a far promises and the could sense as website as far Amazon pull-through

Robert Fried

it. It's XXX has also milligrams per pack. indolent stick It in

So has other benefits. it actually fiber

stick us very It's emphasized sales pack. of have, interesting, pack, stick of really the begun haven't the it's but couple people about that last increase. We over ask rare quarters, to [indiscernible]

XXXX be cohort ring more tend exercise We've more they expect to to that workout to be campaign packs behind in noticed we So stick for it. the younger the a of and tend in consumers group. initiate also

Jeffrey Cohen

second expect That's -- adjustment that as well. on be a for royalties quick one final for X.X you you. The Okay. you first the fourth X.X helpful. the the Got in the said quarter, also Ozan, quarter, and it.

Ozan Pamir

not clarify, million So reoccur. $X reversed Elysium to the that's not going in relates the royalty settlement. just adjustment, Dartmouth, to that's gas royalty adjustment that's a Dartmouth, we to The

million from [indiscernible] That's $X.X of payment that the by the is are we to the However, be received Elysium, end of going expecting second March. again

Jeffrey Cohen

we expect Okay. the quarter would quarter? company commentary the a read some or or we in That's helpful. Rob, out Perfect. study, the third fourth NO-PARK from should the on --

Robert Fried

We really know. don't It's a study. double-blinded

We will don't have but once data sure that to we make they they share the them us, it with expect compiled.

publication of end of necessarily a mean or I public fourth that are estimate be may like that doesn't with published. give we may and be beginning you if fourth for quarter. they impact factors getting feel But chances they their would third it quarter, go So it. the There would submitting rough probably of

in create really to when feel only last will now this right want year. the The will June thing we don't around participant saying I is completed comfortable be of expectations So hear. you

Jeffrey Cohen

Got could talk grade extremely it. of And the food out about in because segment? the then you origin lastly for XXXX. it's Sticking back us, half strong been

a Any segment. for sense 'XX that there? to out as of call looks So anything how

Robert Fried

Yes.

We to to a partners. it expect continue grow. of couple other added We've

supply are are awareness about We'll X NIAGEN you to we as companies increased As handful companies an We're of more. know, extremely including ingredient. life growing. supply, very we're H&H, Those an certainly good add or but -- extension. whom in of Nestle, [indiscernible]. a There level NIAGEN of of X selective seeing to NAD, particular. themselves

ingredient So food-grade XXXX. we expect in business ingredient nicely to the grow

Operator

Your comes the from Pinheiro next Mitchell question with of Sturdivant. line

Mitchell Pinheiro

bit in fourth expand strong the on Could the of e-commerce little a your performance you just quarter. drivers

Robert Fried

the It's website time can't improve that to and as Well, performance. you really done extremely as a engine And up ads talking ads. of search But also underperformer. localizing it been But take a e-commerce we've in improvement an our always we've add you well now Amazon. your SEO, about performance. function know, variables flip seen many on for Shopify a switch optimization, we've [indiscernible] nice

a it's the business, performance in improving of amount several general, in is a and of received our TRU NIAGEN NAD then ChromaDex months. us awareness IV of Shopify, our publicity have large combination over on that because last and which the of tremendous increased So part NIAGEN general launch of

Mitchell Pinheiro

always I by was this, you would customers the strong then new but ask characterize that... driven How recurring? And growth Okay.

Robert Fried

new a to increase recurring There's mostly customers, in slight it's but brand.

Mitchell Pinheiro

in a Or always finally, you and had to speed? chain the And Okay. roughly curious going how start. And to supply XXXX, your ramp slower would clinics. I'd a where are maybe little learned what -- learn risks your about are I ability be we I'm then are of up you NIAGEN throughout of demand? know end IV, where little with clinic bit where supply the to of chain it to then the pace injectable, additions supply? initial perhaps a the up more obviously, you there related keep -- expect to in on number confident to love just

Robert Fried

to I The process supply approved FDA the think somewhat sterilized different supply be big will be has than and there recognize grade always It's that to food grade you retested. companies. completely -- the tested and risks. have is a It's of pharma But chain. chain is everything and group different.

clinic. ship filling we it a pharmacy it are demand have and a product resolved us you're these But to have actually us, we've now of couple or So for hiccups and place it's working do area it's frustrating that had before and And to we nothing right you new It or and X a things hiccups, ship for been been had of it another. a on years from the several we that is the there. to a things. -- it us had do we to when the absolute level the having of tiptop with the the to We has kinds things always quality. do the to been with are appropriate experience for the reach license like highest traveling purity warehouse out technical whenever These quality the paperwork test. because for think learning it. we've

certainly of capable certainly don't if expect we've quarter, doing the And that terms couple our [indiscernible], or next a Reddy's. X supply. we We And it and ordered probably going. ample who's back this we relationship will a year at here. needed. the the it's quarter, or a we smoothed think in out Grace, an that of pharma nice have manufacturing have W.R. Dr. case, In of for also years. years we've still course, And for with we we grade amount been the of by rhythm so think get Right partners. with will sales. problem third in going really have now, I second

we supply. and we're pretty could terms So up much good But We it's beefed in try that putting staff shape be happen yes, problems. in of on more staff We anything can. in we to -- [indiscernible] think internal area, it. our focus anticipate

years. company. that to for in the the expect coming area We an growth important be

Mitchell Pinheiro

people Or that curious where what the the your product learnings doing the were I'm an plus there? are is the product. just covers the at Like what it learnings of might IV clinics IV to step people the And and need just that as learned really in clinics presently be? -- have for marketing. you up you're switch from easy selling any I aware the mean, clinics, with new it

If talk you could it. about I'd that, appreciate

Robert Fried

whole It's from to transfer like warn it a Yes, one going question, a bit. is quite consumers NAD Yes, we NIAGEN. [indiscernible] of post It learned questions. to easy didn't ask Mitch.

used In I experienced the can these They no a ingested sweats. then hours IV NIAGEN nausea, get effects, side takes [indiscernible] NAD they're levels. taking NAD to higher that it you terrible none few is and anybody take who fact, NAD confidence of side the much tell you're effects to tries to seeing with with They're that hooked. and IV IV minutes used has

they November, So X, over level the than XXX announced they just I we are think, with or experienced benefits the much -- entity. next had day greater clinics. There in pure back might of

morning, I $XXX million. think that to up announced we around this we're

expectation Our we'll at double of least year. the the that end be by is

are interested clinics There plenty of that this. in are

One And make just call is the time exploration they time clinic that pharmacy BOD, that's has date the what and it the clinic to sure just ships that that to the the of to takes time. sell when it. the enough issues

to So time I out. ample for sometime sell the think that the in second clinics quarter

X. like are now, inventory once But And franchise more marketing a has in do a with bought many quite fairly this correct comes department is want data were to consumers. itself consumer that that clinic, one them their franchise with coordinates exploration to comes requests. them of right month these in and and to it to work reluctant because order. that that the short. coming already clinic of will marketing with patient order so some marketing a numerous into or they're campaigns, we some clinics expect But it work to consumer has clinics. future. And We They [indiscernible] next in, generally aggressively of create We don't they the

have You that called own There's there people We've just it, -- are podcasters it. a podcasts them clinic, There a their social NIAGEN. her well-known Whitney about her got patients have whisper, speak a who's saying may taking bit on by egg and on Cummins is also to many quite or fertility about it heard heard have about [indiscernible]. the benefited media. talking NAV who

it's smaller market. awareness shot a organic the to bit without of So that young. sort NIAGEN at [indiscernible] thin home. are to doing subcu GLP-X where want NIAGEN a NIAGEN also be But marketing. we nice stay inject very We hit quite months, We picking of can well. shots. that yes, up will of of even version doing little us the IV that, NIAGEN its on dose own shot, to we themselves coming these at-home plan to to will In the a much want people and a able we know that a that people think are agonists stay the hopeful And most market

that think we IV as space NIAGEN for there's So well.

Operator

Susan question Canaccord from line the next comes Genuity. Anderson Your with of

Unknown Analyst

what Any on do a And A like how to new day, question actions of you it in [indiscernible] mitigate take plans have that? on international your if or Watsons for Hong so, or business on there's Kong? parts you impact could even Susan. sourcing thoughts on might potentially any headline every tariffs.

Robert Fried

It's pharma I'll if of also and food-grade impact our solid in vast amount are on grade on impact we're Watson meaningful you the possible think the all a a the NIAGEN, the will majority bulk have The the sales won't and on States business to let want material a we the very the this of but NIAGEN business grade small talking tariffs our overall. about States. as made that United and possible well here as in answer -- that food also tariffs, is material, have United our here

are the to list. add that you if Canada side, that. were not products Canadian tariffs With on today, tariffs And just look the that having to at are are list from regards supplements passed posted part of that to that of just

So we as don't expect any sales impact Canada well. on to our

Unknown Analyst

just innovation. a on it. Got then follow-up And

plan injection. You mentioned subcutaneous year? future innovations to for the able you're that any talk about I the guess other

Robert Fried

we supplements reformulated that We or that do X sell have, we to product that couple new a we NIAGEN to immune beauty the either such introduce are of NIAGEN we or that TRU that as in plan as X TRU the have and do complementary to Asia. of TRU a refer NIAGEN formulations formulations are product,

and pack. are stick was we question then -- there So about one

So later these working we're X some are in other have to innovations developments year. update expect product that the on,

Operator

line Your comes from the Dezellem next question Management. Tieton of with Bill Capital

William Dezellem

terrific group a on Congratulations questions. quarter. A of

that ingredient a food the were orders XX% that e-commerce maybe if that your to larger larger just that along strong. every awareness? don't very grade we happen point with line tipping XX% with fourth could, orders hitting start Or that popped or Is of sales being being there into data over on with you're sort led another the some -- that Let's quarter, up indicating growth this that item. plus initial just quarter point no

Robert Fried

Well, steadily too. seeing year they the to aggressive, order. BXB are several order NIAGEN so and in, has been a fill quite you their extend our are the forecast well because this the we're business more quarters. predict comes going business. But to doing ingredient whom now for The pretty it's difficult for it's partners on

to NIAGEN expect this to grow. we So ingredients business continue

William Dezellem

selling point. all. want you take any to for that of I is to the place? at Then is where seen the product interest of going this with the And best sometimes I'm IV shortage IV the bit Has question have And about business talk single scarcity moment. a alerted a

Robert Fried

clamoring has months. ordering for going the we've for they of want and experienced want people been few they problem Initially, saw bit -- it it a little a and about e-mailing is we it, that on thing saying of and this

to after the get So solved we product. and selling to marketing a supply We just great yes, chain first, a while did. what no and back problem at but

William Dezellem

for as the supply come the from me And Great. chain to schedule prepared. supply you in what to in the the and quarter allow problem, properly quarter the with not did what apologize, chain would issues Rob, the anticipate impact But I first IV. my fourth this

Robert Fried

the expectation is break we we'll Well third in And quarter, to ingredient first dramatic second but it probably a too. quarter, in you you're the a and think do business, overall $X IV third in maybe the maybe neighborhood in space. NIAGEN seeing is the going out. could [indiscernible] pharma be of in of less. in that quarter And of part pharma, area sales fourth ingredient a in starting start even see was quarter, the the it the NIAGEN little in that late I quarter, about the million more then business quarter rise But then the my to

and been several in So the a would that let's in It I third think that delay. quarter. about have first it's was if we're experienced quarter, that month the say, right growth growth just happens,

William Dezellem

I hear you completely did point? at And this say that is you now behind that,

Robert Fried

experienced now. time. With the just supply But have and date, in of called the the of has nothing manufacturing with BOD, process. any weeks, several we which issues this supply do material exception expiration takes chain chain thing to It plenty we haven't

us. behind all think So I it's

Operator

Our Ram next question Wainwright. of line Selvaraju from with H.C. comes the

Raghuram Selvaraju

comment adoption the or segment could NMM. the and XXXX NGN One uptake the previously Congrats other is areas is was particular. if being I by of was really to from on wondering on progress, tailwinds performance IV in market impressive potential that all potential in operational X accession you Firstly, served the mononucleotide, of nicotinamide was

Robert Fried

ruling know, we consistent very [indiscernible] about a has for drug that is much There reason have this issue market there's you made Metro do was legal the that is much, drug supplement both still reserved for not the a been that will company published said see was And funded that final the name to a the a FDA its against some the that and in use. that called but We group ChromaDex on group. a let FDA upholding drug in ruling the But selling claims Biotech they And statements is FDA lawsuit and application dietary NMN against the as did. July. occlusion you has this drug only the by in the could FDA. preclusion

NMM the NAD and We end force FDA the in I of presently. not companies doesn't the show as on these will seeing to out that the are as confident alluded an before, a are, the market. keep We're days. integrity continue major bandwagon of There though, marketplace jumping

just lately out are prices. the selling sort selling missing pass some just claims label lately and infringing Asia precursor are There of Some on companies cheap ingredient. some plan of NAD that to be at

And that. acts to and So the inside companies to in bad and issue limit industry, the seeing fraudulent some exciting we're hard very we're identify really an retailers us. we growing authorities actors the people market, an egregious marketplace and notifying really are for -- piece working in of get a these regulatory Amazon of what is

these itself, companies selling to company to e-mail sell isn't with they from these TikTok not risk state big fraudulent that a now to America are think would lumpy consumers care. scrutiny others. real way them allowing right would is a There's these a shop. attention shop to company. of players NAD. see to them their who's feels fraudulent seem they an But many guys listening would policing deal is selling for the to of some this the like help we're who bioavailable. That they're given TikTok and are love And letter creating call taking the in are and that getting your I another not to government. doesn't NAD action. they infringers [indiscernible], on TikTok that this. molecule anybody of [indiscernible] seeing and products There you informing on be the are NMN shop, or their could Yes, We'd thing one writing NAD pay And

does show exactly -- that X the to a into a and is on has there the cell. studies a levels. NAD and meaning nucleotide a just increases It So entry it's too group there's swallowing it's -- simply blocking that there large problem similar NMN molecule that perimeter [indiscernible] NAD are

who because NAD about X even this going probably anything, creates and It are some doing these compared NAD, that sweats showed where we your creates biomarkers I do fevers. did harm. the do of and are NAD. to NAD to who buying the you IV NAD that friction just these eggs snuck people inflammation -- Why a why So friction. that NAD they ramps There's NAD hearing not the IV a a study in get have to one out Taking Well, we doesn't that and cell people say all IV it's product information. into NIAGEN and hours, says reason and taking that leads endeavoring supplement get

NAD intellectual growing I very company. gets the the that word, quality and consumer extent gets in its general be So base trustworthy growingof But inflammation. only fact space. the in it approvals, that label creates stop good, company hope trust dozens has jumping spread in also not now meets that property that can one that guys selling. really help the only doesn't do department that of that there's safe, you'd And us much, is an interest can does NAD when NAD the that's shelf you op bad studies you that that to doesn't to companies you'd space on it think from the The matter the of claims helpful regulatory

Raghuram Selvaraju

Just X related if may. things, I

and scenarios to could potential avenues And you currently future Rx comment to might if that have wondering the ongoing broader implications of that's talk what disease Parkinson's possible was a kind positioning the report positive if about product, as study also, spinout, you an some I or addressable size for that the potential and market expect data maybe be market ChromaDex. indeed corporate of if to what upside total include initiative rebranding? opportunity, could NR might on you the possible Firstly, pharmaceutical a

Robert Fried

the with thank And tuned new Stay asking we Well, a in you you dietary from very and the a weeks you related are very Parkinson's was for of to to do that Rx. journal, read statistically therapeutic with it a if that. X corporate expect name. in Parkinson's clinical in value. you and somebody disease will Parkinson's somebody were diagnosed Yes. The planning know, million or completed rebrand to announce disease, read as next quite reputable while. you we foundation you researcher. the the Parkinson's about significant there with had Ram, study family or few study, diagnosed a that Phase websites III a And for know news question, XX it there this reputable read data media people We I it's won't a And as Parkinson's we be June. disease. [indiscernible] But you a globally supplement it protocol are or the for ask completed said, in Parkinson's of the in read maybe

actually to them the the that you're whose For would doctors of by very, the go Parkinson's go and that seek just that one approved on those was was dramatic, bodies. of numbers. market. percentage the supplement. that study, is or that significant that regulatory What property XX seek the Seek all intellectual dietary very and set safe think X%, about If do recommend has the talking and out one was completely did million it you out would safe

you do very could It's significant have. it. the a You math, I'm sure

results of studies the earlier all there's of studies mechanisms that a studies, researchers. that obviously, the the that But double-blinded going study there the study. Now come the assumption that published an there's nor chance. a we at suggests is preclinical the good It's -- But it. pretty know We positive. have are no back Phase to knowledge were don't action even I and and the

as think or know, with for So great portfolio dex has one that Ram, NAD, [indiscernible]. upside of for But potential said, nicotinamide area we in terms of you terms large you as riboside, of chloride. a drug not nicotinamide approval, that's just precursors in Rx, Roma [indiscernible]

we that be think which better other bioequivalent might even We of for drug precursors candidates some have are biosuperior approval. or

us. of So separate those patents molecules Phase are or have which many orphan that sales that one ChromaDex years other for for diseases. X could clinical drug already other many, supplement we've on profile are disease. a Remember, published approval actual Parkinson's another II use on high for [indiscernible], which ataxia is one that conceivably These diseases, from of of disease we dietary the

there the question, asked will you then spin-off. so -- be a Now

past raising So dilute to our pursue we our by that drug further to have we money said in the intend don't investors approval.

don't So too that the place, if were there, the or money capital it of cost a but a it we we if study licensing company turns that that in would because we we pharma and simply get a just spin If happen, from raise the deal possibility. much. for spinout the out was I needed. perhaps expect have do insufficient is is to out yes, that get didn't a to

and those The interested spinout the not companies us supplement might in ataxia certain be as pursuit. in and business just other And in business reason Parkinson's they both with pharma the our and molecules a molecule that they for are or be would pharmaceutical businesses very interested our those are doing business molecules. as considering for are for and that interested

operating increased So appreciate cash a and for several NIAGEN focused to healthy and that's and this are while as for shots because awareness ChromaDex NIAGEN. company, potential. ataxia on But injection strategy We and business well, realize potentially positive the spinout. IV just reason Rx have that's strategy NIAGEN it we TRU its possible growth. strategy goal NIAGEN to up all a brand and good, the awareness between I the another on Parkinson's bringing we the flow and -- in do think

Operator

ROTH line And Sean comes of the with Capital. question McGowan your next from

Sean McGowan

could GAAP for I One, answer, $X you reported number I $X expectations million G&A you know the clarify than of the Do think the clarify A could year? full couple questions. million higher just XXXX? on you mean to [indiscernible], year the for

Robert Fried

And Yes, do. I clarify let me that.

$XX.X receipt million G&A million includes in reversal Malaysia. That the and almost of royalties expenses. that of reported of $X.X we for $X.X the million Dartmouth So

$X for based on about X%. if would normal it from be increase, those So that, operations numbers for adjust you million X% to to $X reported million

Raghuram Selvaraju

for be year out turns It full to than a I expected. Right. number 'XX had lower

thing. bridge lesion be Or Is back royalty to at paid prior booked reason On any royalties effort there I'm on So that and any risk going pleased. that dark this is get on the the that? what the to are point? not

Robert Fried

previously all accrued of and no bonds accruing royalties, are the longer have reversed, Dartmouth we been any royalty.

So there's really nothing left there.

Raghuram Selvaraju

on not were Is But paying you but only try back, to recruiting them, I'll to you if were talk point right? the were those Right. back to and but my where go paid, them, you go going you're not about understanding back accrued get.

Robert Fried

No, that's not paid. we're Previously not goal. our for after to go them going No, that.

Sean McGowan

NIAGEN in terms Is this talked before of overall higher I about we've that margin IV average. than the relative contribution, is margin believe

-- is injectable, comparable when injectable the at-home be And IV? that right? would That's NIAGEN Niagen

Robert Fried

probably be lower. They'll

Sean McGowan

Probably lower.

That's you offer any on kit that timing did when home would specifics injection And Okay. helpful. be available? the of

Robert Fried

We do. But third we're circling quarter.

Sean McGowan

And on comment would last frequency Very update them IV, helpful. of portion once Can any like coming coming of be they on Or that people a question. back what helpful. you back? NIAGEN month? doing of the are kind Are

Robert Fried

months material well make marketplace material. in the into for first to really a able we then pharma out were small the ran NIAGEN, sold we of So for of we and amount September, we X.X but out and went grade

repeat So have because we clinics. the we to don't users about know didn't to really material supply

that So answer can't we now. right really question

Operator

from Your of next [indiscernible] question Research. the line comes

Jan Mark

Congratulations a on great quarter.

that upside. for agenda patients testing [indiscernible] and you lab into and of and or who there's infusions, And your of partnership you sort blood are the So would that's for doing my Have new or on looked lots testing. more a checking that helpful? But taking necessary is partnerships that with quickly, of [indiscernible] doing with if be thing a lots not? possibility no data financial from had clinical I'm wondering about financial thought maybe NADs was benefit

Robert Fried

about talking you about talking NIAGEN? NAD you or are Are

Jan Mark

Well, level I plus levels? so any [indiscernible] guess any products, new

Robert Fried

for NAD people to is bioavailable. not understand important Very itself that

So these are [indiscernible] that people

amount for molecules. are So the is because is of increase levels, NAD. molecules small -- even then down be a cell. have will taking small breaking down go breaks taken will issues. an one There and to NR. But there, then getting they smaller the NR molecule quite people a smaller NR into the the And it who increase, NAD it to NA blood reason in of NAD or me. other a which lot creates and into agony their of is in to is get up but And into DID get a the that process information through the

some -- companies NAD a levels we my do, in talking isn't constantly fact, blood. with who really about of But are And lot levels. kit the people probably NAD in NAD we the to you asking your blood issue see a of great emerging sell much. it a about have levels The indicator in other measuring

to biopsy, in kind a tissue really do human. cells. rats the You to the it's very measure humans. mice. want going to measure in But then, in It's in you're cells. damaged easy do even them in But of your to to NAD is quite do a the difficult unless to tissue and do cells you in want tissue really It difficult

can with MRI. brain do it the in You an

with all neurodegenerative Alzheimer's. and And in Parkinson's with neurodegenerative of NAD well of these because reasons it's one we're and -- as like they're so measure ataxia the NAD the MRIs, diseases measure benefits NIAGEN. can as we've that. TRU brain taking can and we levels and You levels the done diseases, aggressive therapeutic

So the deliver. out with the data NAD would and doing in we of or not -- quality confident of it the NAD selling could conceivably IV. clinics But some are that NAD or partner very business these we're there in that

science be to a marketing is there it exercise So Andrew, than add want that? a anything you exercise of more to might

Unknown Analyst

it, covered Rob. you think I

if a see So to just [indiscernible].

in MRI in you interested if obviously information then, could going people that to point doing you knowing. are and had for that some useful that's expensive. an So a actually really there be really, actually give Is super who

Robert Fried

want you take to do Andrew, that?

Andrew Shao

think of that I one is availability technology. Well, of there the the challenges

do noninvasive. it's to But expensive it's So quite that. today,

from So it the But standpoint an would availability it be certainly be would require the biopsy. doesn't preferred invasiveness and the affordability. because

Unknown Analyst

Right.

So could an that here, right? That's someone and money interest that they theoretically pursue. a Is right? has keen real not avenue object is an

Robert Fried

a that's and studies, doing have Parkinson's research no routinely large measuring study, studies. good done earlier to implement in referred Rob technology levels. the implemented they that I know that the Norway in disease don't park NAD has continue in they to this but in brain of group portion smaller The it it's it Yes. smaller

Unknown Analyst

Right.

talking might point and show if or you of whatever. research settings. be are wasn't know do and want the have like the just actually right? or money it, do am I individuals Rob who about you theory, and the -- alluded I'm there to, you benefit, their levels, keen or things as things So really boat? to missing Or thinking data about clinical getting you market some can to in things I are that So right? Is that who or ChromaDex's this, can there view, prove from obviously, to people

Robert Fried

No, I there people an do and that. theoretically so guess are out there that expensive, that's search to actually committed their that but might It's anti-age they idea. are body

So that's [indiscernible]

Operator

Shamsian now for will conference remarks. to the that concludes back our And turn I Ben session. question-and-answer over closing

Ben Shamsian

is a XXX-XXXX. of (XXX) everyone, joining and ChromaDex. Time replay the us Thank XXXX There support X for will replay continued Thank number XXX today. of and for is X:XX you, call your you, this operator. be at Eastern p.m. today replay The beginning ID

Operator

today's And call. this concludes conference

You Thank may disconnect. you. now

ChromaDex (CDXC) 4 Mar 252024 Q4 Earnings call transcript