CDXC - ChromaDex: Looking To Take The Big Step Into Pharma

2024-06-26 12:20:23 ET

Summary

• ChromaDex Corporation is a leader in NAD+ development for healthy aging with Tru Niagen, showing strong growth and attractive valuation.
• ChromaDex is making a move into the pharma industry with NRC candidate for AT, receiving FDA designations and preparing for clinical trials.
• Potential risks include cash burn, competition, and IP challenges, but the company's dual focus on pharma and nutraceuticals offers significant upside.

A great deal has happened since my last ChromaDex Corporation ( CDXC ) article , where I highlighted how the company is a leader in the development of nicotinamide adenine dinucleotide (NAD+) for healthy aging utilizing their product, Tru Niagen. I also discussed how ChromaDex was reporting strong growth, improving gross margins, and had an attractive 1.3x price-to-sales valuation. As a result, I put CDXC on my watch list for inclusion in the "Bio Boom" speculative portfolio.

Unfortunately, market conditions prevented me from establishing a position as CDXC went from $1.38 to $4.72 in a few months. Now, CDXC has receded to around $2.70 per share, with a favorable technical setup forming on the Daily Chart....

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