Shares of Chromadex are not cheap. When you look at this company relative to sales, the $200+ million market cap sticks out like a green thumb. For a supplement company its valued more like a biotech; you’re really betting on the future.
However, this is not to say that Chromadex is not a great bet. On the contrary, several of the smartest and wealthiest investors out there are long CDXC. These investors include Li Ka Shing and Mark Zuckerberg-backed ICONIQ Capital. Their investments are not predicated on this month’s, quarter’s or even year’s sales. Instead, they are betting that Niagen (also known as Nicotinamide Riboside or “NR”) is going to be THE supplement of the future.
In order for this future to take place, for Niagen to become as popular as, say, omega 3 fish oils, one thing needs to happen; trial results have to come to out that support Niagen’s efficacy in improving health and combating aging. This is the promise of Niagen upon which investors are placing their bets.
Which brings us the the long anticipated “Boulder Study”. This clinical study, that was started in 2015 and completed around a year ago, is designed to show the “Safety & Efficacy of Nicotinamide Riboside Supplementation for Improving Physiological Function in Middle-Aged and Older Adults.”
Run by the University of Colorado, Boulder, the trial was a randomized study of the effects of NR on 30 adults between the ages of 55 and 79 that took place over a 6-week period. Participants took 500mg of NR twice a day over the six weeks, with the goal being to measure vascular health and physiological improvement.
The Boulder Study is the most important trial to date for Chromadex, being done on a fairly large scale by an independent research department at a major university. The results of the trial will be published in Nature Magazine in the near future.
For those of you not familiar with Nature, it is one of the oldest scientific journals in the world, having first been published in 1869. According to Wikipedia, “It was ranked the world’s most cited scientific journal by the Science Edition of the 2010 Journal Citation Reports and is ascribed an impact factor of 40.137 , making it one of the world’s top academic journals. It is one of the few remaining academic journals that publishes original research across a wide range of scientific fields.”
For a company that is dependent upon scientific evidence to support the growth of their product, having a study published in Nature is the gold standard. And, it’s likely that the results of the study were significant, or else why would Nature want to publish them?
At Tailwinds, we remain very enthusiastic supporters of Chromadex. The Boulder Study should only add to our enthusiasm and could be a very significant catalyst for the shares. The results of the study should be available very soon, so keep it on your radar.
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