The past few weeks have brought a number of exciting developments for ChromaDex Corp. (OTC BB: CDXC), most notably the appointment of a new chief executive. CDXC's co-founder, chairman, and previous CEO, Frank Jaksch, has moved into the role of Chief Scientific Officer to make way for this consumer products veteran to lead the nutraceutical company's next phase of growth.
The Company's new CEO is Jeffrey Himmel, former chairman of The Himmel Group, a consumer products marketing group specializing in over-the-counter pharmaceuticals, health and beauty aids, and nutritional foods. Mr. Himmel has a long track record of successful brand-building, having increased the market share of Ovaltine from 12% to 31% and transformed Gold Bond Medicated Powder from a small regional brand with sales of $1 million into a $27 million market leader in the U.S. The Himmel Group's other branding success stories can be read here.
The addition of this industry veteran to the Company's management team is a major boon for ChromaDex. Dr. Phillip Frost, a member of the Forbes 400, Vice Chairman of Teva Pharmaceuticals (NASDAQ: TEVA), and a major investor in CDXC, has this to say about him: "Having personally known Jeff for more than 20 years, I have great respect for both his enormous success in the consumer healthcare products area as well as his incredible drive as a business executive…I have complete confidence that he is the right person to build ChromaDex into a world-class healthcare company."
The appointment of Mr. Himmel closely follows the adoption of CDXC's BluScience dietary supplement line by two major U.S. retailers. Walgreens (NYSE: WAG), which has more than 8,000 stores nationwide, now carries two products from the BluScience line and will add two more by the end of June. BluScience also recently became available for sale at Drugstore.com, a leading online provider of healthcare products. Added to the Company's existing distribution in GNC (NYSE: GNC) stores, these agreements bring CDXC substantially closer to its goal of placing BluScience in more than 25,000 retail outlets by the end of 2012.
The novel ingredient in BluScience, pTeroPure, was named the 2010 North American Most Promising Ingredient of the Year by Frost & Sullivan. pTeroPure's numerous potential applications in nutritional supplements, foods and beverages, cosmetics and pharmaceuticals add up to an estimated $465 million to $600 million market opportunity.
Key supplement players such as Douglas Laboratories, Thorne and Swanson have incorporated pTeroPure into their products since its introduction. OPKO Health (NYSE: OPK), a multinational pharmaceutical and diagnostics company, recently entered into a licensing agreement with CDXC to distribute the Company's products in Latin America. CDXC's recent North American distribution agreements with McKesson (NYSE: MCK), the largest pharmaceutical distributor in North America, and Glanbia Nutritionals, a large ingredient supplier, should further accelerate the use of pTeroPure as a dietary ingredient.
CDXC has decisively broken the downtrend that saw its share price drop from $1.80 to $0.53 between July and November 2011. The stock's break of its November high on January 23 further confirmed the bullish trend change. Currently trading around $0.65, CDXC has come back down to retest the previous resistance, creating a buying opportunity for fast-acting investors.
To learn more about CDXC, you can read our most recent research note on the Company for additional insights.
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