ChromaDex is Positioned for Growth in 2012 and Beyond

As a turbulent 2011 draws to a close, financial writers across the nation are drawing up their lists of the year’s winners and losers. While companies such as Netflix (NASDAQ: NFLX) and Bank of America (NYSE: BAC) stumbled due to questionable management decisions, others such as Apple (NASDAQ: AAPL) and Chipotle (NYSE: CMG) saw their sales and their stock soar in 2011.

If there were an end-of-year award for “Best Business Transformation,” it would undoubtedly go to ChromaDex Corp. (OTC BB: CDXC). For most of its 12-year operating history, CDXC has supplied reference standards and laboratory testing services to high-profile clients such as the FDA, USDA, Pfizer, Estee Lauder, Nestle and Kraft. But this year, in its first major commercialization effort, CDXC made major strides toward transforming into a consumer products company with the launch of its first retail product line, BluScience. BluScience launched in GNC (NYSE: GNC) stores during the third quarter and is expected to start generating significant revenues in 2012. CDXC is also set to expand distribution for BluScience into additional mass market channels in early 2012, as the rollout of BluScience ramps up.

CDXC also launched pTeroPure the ingredient in 2011, the Company’s first proprietary product and the key component in BluScience, in 2011. pTeroPure, based on a compound found naturally in blueberries, was awarded Frost & Sullivan’s “Most Promising Ingredient of the Year” for its tremendous market potential. The health benefits of blueberries are widely known, and pTeroPure has the potential to positively impact heart health, improve cognitive function, and promote healthy aging. pTeroPure’s potential applications in dietary supplements, food and beverage products, cosmeceuticals, sun care and pharmaceuticals, add up to an estimated $600 million market opportunity. In 2011 ChromaDex initiated aggressive strategies to pursue each of these markets.

Since its launch, major supplement players have included pTeroPure in numerous products. CDXC also signed an agreement with Cott (NYSE: COT), a beverage giant whose products are sold in Costco, Wal-Mart, and Sam’s, to create products incorporating pTeroPure. Additionally, ChromaDex is now investigating pTeroPure, together with leading academic institutions, as a potential treatment for skin cancer as well as for its effects on cholesterol, oxidative stress, and blood pressure.

But CDXC’s growth potential doesn’t end with pTeroPure and BluScience. The Company has an array of additional proprietary products in its pipeline, among them anthocyanins, ‘superfruit’ antioxidant compounds that could aid in weight management and diabetes; and nicotinamide riboside, a more potent version of the B vitamin niacin. The Company plans to roll out both products next year using the same strategy that successfully launched pTeroPure.

ChromaDex is strongly positioned for growth in 2012 and beyond as the business transformation set in motion this year begins to bear fruit. For more information on CDXC, you can read the latest RedChip research update on the Company or view CDXC’s presentation from our recent virtual conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.