The nutraceutical market is one of the fastest-growing industries in the U.S., according to a recent report by RNCOS. The industry, which includes dietary supplements and functional foods, was worth $71.8 billion in 2011 and is expected to grow at a compounded annual growth rate of 8% between 2012 and 2015.
ChromaDex Corp. (OTCBB: CDXC) provides investors with an opportunity to capitalize on the rapidly growing nutraceutical market. Until recently, CDXC was known for providing nutraceutical ingredients and laboratory testing services to large companies and organizations such as Kraft, Pfizer and the U.S. Department of Agriculture. The Company's market leadership and strong reputation led Dateline NBC to tap the expertise of CDXC founder Frank Jaksch earlier this year in a segment exposing fraud in the dietary supplement industry.
CDXC moved into the dietary supplement market with the release of BluScience, its first branded consumer product line. Launched in September 2011, BluScience is currently available at Walgreens, GNC and 4,000 independent drugstores and pharmacies across America. First-quarter sales of BluScience totaled more than 125,000 units, over 50 percent higher than the Company's initial forecast.
The key compound in BluScience, pTeroPure, was named the 2010 North American Most Promising Ingredient of the Year by Frost & Sullivan for its wide variety of potential applications and is believed to address a $600 million market opportunity. PTeroPure has demonstrated the ability to support heart health, cognitive function, and anti-aging. Major supplement companies have incorporated pTeroPure into their products since its launch last year. A recent North American distribution agreement with Glanbia Nutritionals, a global ingredient and micronutrient premix company, should further expand pTeroPure's reach.
But pTeroPure only represents the beginning of CDXC's commercialization strategy. In July, the Company licensed several exclusive patents for nicotinamide riboside, a recently discovered B vitamin found in milk. NR may play a role in preventing obesity, but the amount of NR found in foods is small, and the vitamin is not yet commercially available as a nutraceutical ingredient. One of the patents licensed to the Company is a simple, cost-effective method for synthesizing NR on a large scale, which could help CDXC become the first to market this potentially game-changing ingredient.
RedChip Research rates CDXC a Buy with a target price of $1.80, an upside of 200% from recent prices. You can download the latest research update on CDXC to learn more.
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