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ChromaDex Corporation
11/3/2021
This conference call is being recorded. This afternoon, Chromadex issued a news release announcing the company's financial results for the third quarter of 2021. If you have not reviewed this information, both are available within the Investor Relations section of Chromadex, website at www.chromadex.com. I would now like to turn the conference call over to Brianna Gerber, Vice President of Finance and Investor Relations. Please go ahead.
Thank you. Good afternoon, and welcome to Chromadex Corporation's third quarter 2021 results investor call. With us today are Chromadex's Chief Executive Officer, Rob Freed, Founder and Executive Chairman, Frank Jacks, Chief Financial Officer, Kevin Farr, and Chief Marketing Officer, Fadi Karam. Today's conference call may include forward-looking statements, including statements related to Chromadex's research and development and clinical trial plan and the timing and results of such trials, the timing of future regulatory filings, the expansion of the sale of TruNiagen in new markets, business development opportunities, future financial results, cash needs, operating performance, investor interest, and business prospects and opportunities, as well as anticipated results of operations. Forward-looking statements represent only the company's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause Chromadex's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These risk factors include those contained in Chromadex's quarterly report on Form 10-Q, most recently filed with the SEC, including the effect of the COVID-19 pandemic on our business, results of operations, financial condition, and cash flows. Please note that the company assumes no obligation to update any forward-looking statements after the date of this conference call. to conform with the forward-looking statement's actual results or to changes in its expectations. In addition, certain of the financial information presented in this call references non-GAAP financial measures. The company's earnings presentation and earnings press release, which were issued this afternoon and are available on the company's website, present reconciliation to the appropriate GAAP measures. Finally, this conference call is being recorded via webcast. The webcast will be available at the Investor Relations section of our website at www.chromadex.com. With that, it's now my pleasure to turn the call over to our Chief Executive Officer, Rob Freed. Rob?
Thank you, Brianna. Good afternoon, everyone, and thank you for joining our third quarter 2021 investor call. This quarter marks an inflection point for Chromadex. The litigation is largely behind us and we look forward to receiving the approximately two and a quarter to two and a half million that was awarded to us by the California jury. This is an important milestone because we can now devote more resources, both human and financial, to the important tasks of building our global true nitrogen brand, developing our science, and furthering our relationships with the global partners. Today, in addition to hearing from Kevin on the financial results and Frank on the significant scientific achievements this quarter, our Chief Marketing Officer, Fadi Karam, will briefly discuss what we can expect in 2022. As I said, the scientific developments this quarter have been significant, and Frank will outline in greater detail. But we now have 15 completed and published clinical trials involving Niagen and over 40 additional clinical trials in progress. Our industry-leading Chromadex External Research Program, SERP, has now amassed over 240 collaborative research agreements. Our focus going forward is to translate this extensive and growing body of science into compelling marketing messages, including aging and heart health and muscle health, cellular health, and others. We're also investing in clinical trials to support future marketing plans and to build our product pipelines. As many of you know, the Chromadex intellectual property portfolio and scientific expertise goes well beyond nicotinamide riboside chloride, still by far the best and safest way to manage NAD levels. But it also includes NRH, NRT, and NAR. All have interesting, unique properties and potential applications, and all could be important to the company's long-term plans. Of our 40-plus total NAD-related patents, 19 of these relate to NRT, NRH, and NAR, with maturity dates ranging from 2026 to 2040. We recently announced results of the first clinical study of NR in children with ataxia telangiectasia, or AT. This study is particularly interesting because AT is an orphan disease characterized by premature aging. We believe the fact that supplementation with NR showed a benefit in this patient population is further evidence of Niagen's impact on age-related health issues. Previously, we've discussed the Phase III COVID-19 study on NR as part of a cocktail of ingredients in turkey. To the best of our knowledge, ScandiBio's submission for drug approval of this cocktail is still being reviewed by the Ministry of Health in Turkey. We have no further updates at this time. Finally, I'd like to highlight three of our strategic partnerships, Sinopharm Xingsha, Walmart, and Roe. Perhaps the most strategic event this quarter was our deal with Sinopharm. Sinopharm Xingsha is a subsidiary of Sinopharm Group, a state-owned enterprise, and one of China's largest domestic pharmaceutical companies. This is possibly the most strategic partner for Chromadex to have in China. We're very excited about the potential for true nitrogen, given high consumer awareness of NAD boosting products among Chinese consumers presently. While the Chinese market is currently led by NMN, nicotinamide mononucleotide, we believe it should be led by NR, based off the clinical evidence and safety data available to date. China Farm will initially focus on accelerating true nitrogen sales across our existing cross-border marketplaces. We are currently in discussions on new product formulations. We anticipate sales of a new product formulation in 2022. Additionally, the companies will collaborate to secure health food registration in China. This is a multi-year process, but would open up a much larger market given Sinopharm's 10,000-plus pharmacies and broad distribution network in China. We believe this agreement is a significant milestone for Chromadex because this partnership has the potential to be transformative over time. Our Walmart launch earlier this year marked another strategic milestone for the company as our first U.S. mass retail launch for True9G. recently had our first line review with Walmart and were encouraged by their team's continued commitment to building the category. Our future plans include education programs, a packaging refresh, and of course, as we've discussed, a national TV campaign. Fadi will discuss this further shortly. Finally, Roman Life, the product from our new partnership with Rowe, was launched in September. Roman Life's packaging prominently features that it is supercharged by true nitrogen. Roe is taking a phased launch approach with Roman Life, beginning with their subscribers. We will support them in maximizing awareness, consistent with their phased launch strategy. As many of you know, Chromadex is unique as a company operating in the dietary supplement space. We do the scientific research. We develop proprietary compounds. and we obtain regulatory approvals. We work with selective valued partners worldwide, including Sinopharm, Chincha, Walmart, H&H, W.R. Grace, the fast-growing Startup Row, and we are currently developing a pipeline of products featuring True Niagen alongside their best-in-class R&D and commercial teams. We believe these companies have partnered with us and chosen Niagen because of our reputation as pioneers in the industry and our relentless focus on the science, which dates back over 20 years. We understand that true nitrogen has tremendous potential. And as I said, we believe we're at an inflection point for this company, and we are just getting started. I'd like to thank our shareholders, partners, employees, and customers as we enter this next phase of growth. And now I will pass the call over to our chairman, Frank Jax, for an update. on the scientific research.
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