ChromaDex Corp (OTCMKTS:CDXC) On The Verge Of A Breakout

ChromaDex Corp (OTCMKTS:CDXC) is one of the more interesting names on the OTC markets. It's a company that's been focused on building its business and lacks a lot of the hype of other OTC names. ChromaDex has quietly been building its dietary supplement business and secured strategic relationships with the likes of Procter & Gamble and GNC. We see ChromaDex as an undervalued and under-followed name that is worth a closer look.ChromaDex leverages its complementary business units to discover, acquire, develop and commercialize patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to its ingredient technologies unit, the company also has business units focused on natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (known as Spherix Consulting).ChromaDex's portfolio of patented ingredient technologies includes NIAGEN nicotinamide riboside; pTeroPure pterostilbene; PURENERGY, a caffeine-pTeroPure co-crystal; ProC3G, a natural black rice containing cyanidin-3-glucoside; IMMULINA, a spirulina extract; and Suntava Purple Corn derived from a proprietary non-GMO purple corn hybrid which contains an extraordinarily high level of anthocyanins.In November, ChromaDex entered into a joint development agreement with Procter & Gamble. Under the terms of the agreement, ChromaDex will provide P&G exclusivity to its new proprietary ingredient for use in P&G branded products. P&G made an undisclosed up-front payment to ChromaDex as well as other payments based on achievement of various milestones. Founder & CEO Frank Jaksch Jr said:

“This agreement positions our innovative new ingredient to be included in a number of P&G products, some of which are among the highest volume consumer products in the world. Working with P&G over the past year on a series of assessments has provided for an excellent foundation for this exclusive joint development collaboration.”

In January, Specialty Nutrition Group Inc. released NIAGEN in GNC stores nationwide. NIAGEN is being marketed under the F1RST brand of patented and research-backed single-ingredient products in GNC stores. This is a pretty big deal as published research has shown that NIAGEN, which is not a stimulant, is perhaps the most effective precursor to boost the co-enzyme NAD+ in the cell. NAD+ is arguably the most important cellular co-factor for improvement of mitochondrial performance and energy. In recent years, NAD+ has been shown to be essential in supporting healthy cellular metabolism including the efficient conversion of blood glucose into energy. A recent human clinical study which demonstrated that single doses of NIAGEN can elevate the co-enzyme NAD+ in the blood by as much as 2.7-fold and is safe. This fits right into the wants and needs of the average GNC customer.ChromaDex also signed a deal with BPI Sports for NIAGEN. Under the terms of the agreement, BPI will have exclusive rights to introduce dietary supplement products featuring NIAGEN in Costco, Walmart, Walgreens, Target, Miejer, Kroger, Publix, Vitacost, QVC, Home Shopping Network, Shopko, Ahold, eVine Live, Ulta, and Wegmans. BPI Sports plans to market the ingredient under the trade names "ANTI AGING PILL", “LIFE1", “CELL1” and "ENEDREX".

ChromaDex announced in November 2015 the New Dietary Ingredient Notification (NDIN) for NIAGEN was successfully filed and that ChromaDex received a letter of acknowledgement without objection from FDA. In August 2015, ChromaDex announced results from the first human clinical study which demonstrated that a single dose of NIAGEN can elevate the co-enzyme NAD+ in the blood by as much as 2.7-fold and was safe. The results of that study constituted a significant milestone as it showed for the first time an increase in NAD+ in humans has been demonstrated through NR supplementation.

Published research has shown that NR is perhaps the most effective precursor to boost the co-enzyme NAD+ in the cell. NAD+ is arguably the most important cellular co-factor for improvement of mitochondrial performance and energy. In recent years, NAD+ has been shown to be essential in supporting healthy cellular metabolism including the efficient conversion of blood glucose into energy.

NIAGEN has become the vitamin of healthy aging. It is starting to become better known and as awareness builds, customers are finding NIAGEN easier and easier to be purchased. The company has also been working closely with the NIH on a therapeutic indication for NR as a treatment of a rare pediatric orphan disease, Cockayne Syndrome. We expect ChromaDex to file an IND application with the FDA this year. In November, ChromaDex reported third quarter earnings grew 52% to $6.2 million. With a market cap of just $159 million, we can say that there's not many companies trading on the OTC markets showing this growth trajectory and why we think CDXC is on the verge of a breakout as more investors discover this hidden gem on the OTC. We will be updating Insider Financial as soon as we know more. For continuing coverage on CDXC and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CDXC and have not been compensated for this article.