ChromaDex Corporation (CDXC): Business Model Canvas [10-2024 Updated]

ChromaDex Corporation (CDXC) is revolutionizing the health and wellness industry with its innovative approach to dietary supplements. With a strong focus on healthy aging and cellular health, the company leverages proprietary ingredients like Niagen® to deliver science-backed solutions. By exploring their Business Model Canvas, you'll uncover how ChromaDex builds strategic partnerships, engages with diverse customer segments, and generates revenue through multiple streams. Dive deeper to see how this company positions itself for success in a competitive market.

ChromaDex Corporation (CDXC) - Business Model: Key Partnerships

Collaborations with universities and research institutions

ChromaDex actively partners with various universities and research institutions to advance the scientific understanding of its proprietary ingredients, particularly nicotinamide riboside (Niagen®). These collaborations often focus on clinical trials and research studies aimed at exploring the health benefits of NAD+ precursors. For instance, partnerships with institutions like the University of California, Los Angeles (UCLA) have facilitated research into the metabolic effects of Niagen®.

Partnerships with manufacturers for ingredient supply

ChromaDex has established partnerships with key manufacturers to ensure a reliable supply of its proprietary ingredients. The company’s Ingredients segment reported a significant increase in sales, with food-grade Niagen® sales rising to $12.992 million and pharmaceutical-grade Niagen® contributing an additional $900,000 during the nine months ended September 30, 2024. This growth is attributed to strong relationships with manufacturers who use these ingredients in their products, enhancing overall market presence.

Affiliations with healthcare practitioners for product distribution

The company has formed strategic affiliations with healthcare practitioners, allowing for the distribution of its NAD+ test kits and dietary supplements directly to consumers. As of September 30, 2024, sales through healthcare practitioners contributed significantly to the Consumer Products segment, which generated $54.121 million in net sales for the nine months ended September 30, 2024. This channel not only broadens the market reach but also enhances product credibility through professional endorsements.

Relationships with major retailers and distributors

ChromaDex maintains strong relationships with major retailers and distributors, which play a crucial role in its market strategy. For example, during the three months ended September 30, 2024, sales to A.S. Watson accounted for approximately 16.0% of the Consumer Products segment. The company also collaborates with Amazon Marketplaces, where distribution has expanded significantly, providing a vital online presence that boosts overall sales.

Partnership Type	Key Partners	Contribution to Sales (Q3 2024)
Universities & Research Institutions	UCLA, Various Research Labs	Research Grants & Studies
Manufacturers	Food-grade and Pharmaceutical-grade Partners	$12.992 million (Food-grade), $900,000 (Pharmaceutical-grade)
Healthcare Practitioners	Various Healthcare Providers	Significant Contribution to Consumer Products Segment
Major Retailers & Distributors	A.S. Watson, Amazon Marketplaces	16.0% of Consumer Products Segment

ChromaDex Corporation (CDXC) - Business Model: Key Activities

Development of proprietary ingredients and formulations

ChromaDex focuses on the development of proprietary ingredients, specifically nicotinamide riboside chloride (commonly known as Niagen®). This ingredient is integral to their consumer products, particularly the Tru Niagen® supplement line. The company has seen significant growth in its Ingredients segment, with net sales of $6,673,000 for the three months ended September 30, 2024, compared to $1,424,000 for the same period in 2023, representing a growth of 369%.

Marketing and promotion of consumer products

The marketing strategy for ChromaDex includes direct-to-consumer sales through e-commerce platforms, which has proven successful. For the three months ended September 30, 2024, net sales from Consumer Products reached $18,123,000, up from $17,400,000 in 2023, marking a 4% increase. The company invests heavily in advertising and promotional activities to build brand awareness and drive sales.

Regulatory compliance and product testing

ChromaDex is committed to regulatory compliance, particularly in the development of its food-grade and pharmaceutical-grade ingredients. Compliance with FDA regulations is crucial as they supply ingredients to U.S. FDA-registered 503B outsourcing facilities. The company incurred approximately $1,290,000 in research and development expenses for the three months ended September 30, 2024, ensuring that all products meet safety and efficacy standards.

Research and development through partnerships

ChromaDex actively engages in research and development, forming partnerships to enhance its product offerings. The company has recognized the importance of collaboration in advancing scientific knowledge and product innovation. As part of its operational strategy, the total operating expenses for research and development amounted to $4,701,000 for the nine months ended September 30, 2024.

Key Activity	Details	Financial Impact (Q3 2024)
Development of proprietary ingredients	Focus on Niagen® and other NAD+ precursors	Ingredients net sales: $6,673,000 (up 369% YoY)
Marketing and promotion	Direct-to-consumer e-commerce strategy	Consumer Products net sales: $18,123,000 (up 4% YoY)
Regulatory compliance	FDA compliance for ingredients and formulations	R&D expenses: $1,290,000 (Q3 2024)
Research and development	Partnerships to enhance product development	Total R&D expenses: $4,701,000 (9M 2024)

ChromaDex Corporation (CDXC) - Business Model: Key Resources

Proprietary technology and formulations, notably Niagen®

ChromaDex's proprietary ingredient, Niagen®, is a form of nicotinamide riboside (NR), which is a precursor to NAD+ (Nicotinamide Adenine Dinucleotide). This ingredient is central to the company's product offerings, particularly in the consumer health and dietary supplement markets. For the nine months ended September 30, 2024, sales of Tru Niagen®, ChromaDex's flagship product containing Niagen®, reached approximately $54.1 million, reflecting a 4% increase from $51.9 million in the same period of 2023.

Strong scientific advisory board and research partnerships

ChromaDex maintains a robust scientific advisory board consisting of experts in biochemistry, nutrition, and molecular biology. This board plays a crucial role in guiding the company's research initiatives and product development. The company has also established partnerships with various universities and research institutions to advance its research efforts, particularly in the area of aging and cellular health.

Manufacturing facilities and third-party suppliers

ChromaDex operates its manufacturing through a combination of in-house facilities and third-party suppliers. The company has invested in scalable manufacturing capabilities to produce Niagen® and other ingredients. As of September 30, 2024, ChromaDex reported total liabilities of approximately $22.2 million, which includes commitments to suppliers and other operational expenses related to manufacturing.

Key Financial Metrics	Q3 2024	Q3 2023
Net Sales	$25.58 million	$19.50 million
Cost of Sales	$9.34 million	$7.53 million
Gross Profit	$16.24 million	$11.97 million
Operating Income (Loss)	$1.60 million	($1.15 million)
Net Income (Loss)	$1.88 million	($0.96 million)

Brand recognition and customer loyalty

ChromaDex has developed strong brand recognition, particularly in the dietary supplement market, driven by the efficacy of its products and marketing efforts. The company's customer loyalty is reflected in the consistent growth of its consumer products segment, which accounted for approximately 71% of total net sales in Q3 2024. The company reported a significant increase in e-commerce sales, contributing to the overall growth of its product lines.

ChromaDex Corporation (CDXC) - Business Model: Value Propositions

High-quality, science-backed dietary supplements

ChromaDex Corporation (CDXC) offers a range of dietary supplements that are supported by scientific research. Their flagship product, Tru Niagen®, is a well-known supplement that contains nicotinamide riboside (NR), a precursor to nicotinamide adenine dinucleotide (NAD+). As of September 30, 2024, net sales from the Consumer Products segment, which includes Tru Niagen®, reached $18,123,000 for the quarter, reflecting a 4% increase from the previous year.

Unique proprietary ingredients that enhance health

The company’s proprietary ingredient, Niagen®, is patented and is available in both food-grade and pharmaceutical-grade forms. The Ingredients segment reported net sales of $6,673,000 for the third quarter of 2024, a significant increase of 369% compared to the same period in 2023. This substantial growth indicates strong demand for their unique ingredients in the dietary supplement market.

Focus on healthy aging and cellular health benefits

ChromaDex emphasizes products that promote healthy aging and cellular health. Their research indicates that NAD+ levels decline with age, which can be mitigated through supplementation with NR. The focus on cellular health aligns with growing consumer trends towards longevity and wellness. For the nine months ending September 30, 2024, total net sales amounted to $70,472,000, marking a 13% increase from the prior year.

Commitment to rigorous research and development

ChromaDex is committed to extensive research and development, investing in scientific studies to validate the effectiveness of their products. For the three months ended September 30, 2024, research and development expenses were reported at $1,290,000. This investment underscores their dedication to innovation and maintaining a competitive edge in the dietary supplement market.

Segment	Net Sales (Q3 2024)	Net Sales (Q3 2023)	% Change
Consumer Products	$18,123,000	$17,400,000	4%
Ingredients	$6,673,000	$1,424,000	369%
Analytical Reference Standards	$784,000	$671,000	17%
Total Net Sales	$25,580,000	$19,495,000	31%

ChromaDex’s strategy revolves around leveraging their scientific expertise to differentiate their product offerings in a competitive marketplace. Their focus on high-quality ingredients, consumer health benefits, and ongoing research positions them favorably within the dietary supplement industry.

ChromaDex Corporation (CDXC) - Business Model: Customer Relationships

Direct engagement through consumer education and support

ChromaDex Corporation emphasizes direct engagement with its customers through educational initiatives surrounding its flagship product, Tru Niagen®. The company provides comprehensive information on the benefits of nicotinamide riboside (NR) and its role in promoting cellular health. In the nine months ended September 30, 2024, net sales from the Consumer Products segment reached $54,121,000, reflecting a 4% increase from the same period in 2023.

Loyalty programs and subscription services

ChromaDex has implemented loyalty and subscription programs aimed at enhancing customer retention. These programs offer discounts and exclusive access to new products. As of September 30, 2024, the company reported a total of 76,027 shares issued and outstanding, which is indicative of its efforts to engage and retain customers through equity incentives.

Feedback channels for product improvement

The company actively solicits feedback from its customers to guide product development and improvements. This feedback mechanism is crucial for maintaining customer satisfaction and enhancing product offerings. In Q3 2024, ChromaDex reported a net income of $1,878,000, which may be partly attributed to effective customer feedback integration into its product lines.

Collaboration with healthcare professionals

ChromaDex collaborates with healthcare practitioners to promote its products, particularly the NAD+ test kits which are exclusively available to these professionals. This collaboration helps in building trust and credibility with consumers. The ingredients segment, which includes food-grade Niagen® and pharmaceutical-grade Niagen®, generated net sales of $14,062,000 for the nine months ended September 30, 2024, marking a 70% increase compared to the previous year.

Customer Relationship Strategy	Key Metrics	Financial Impact
Direct Engagement	Net Sales (Consumer Products): $54,121,000	4% growth YoY
Loyalty Programs	Shares Outstanding: 76,027	Improved retention rates
Feedback Channels	Net Income: $1,878,000	Increased customer satisfaction
Healthcare Collaboration	Net Sales (Ingredients): $14,062,000	70% growth YoY

ChromaDex Corporation (CDXC) - Business Model: Channels

Direct-to-consumer online sales via the company website

ChromaDex generates a significant portion of its revenue through direct-to-consumer sales on its website. For the three months ended September 30, 2024, the Consumer Products segment reported net sales of $18,123,000, which includes substantial contributions from e-commerce sales. In particular, e-commerce sales grew by approximately $2.1 million during this period, primarily driven by the flagship product, Tru Niagen®.

Retail partnerships with health and wellness stores

ChromaDex has established partnerships with various health and wellness retailers to distribute its products. These partnerships are crucial for expanding brand visibility and accessibility. For the nine months ended September 30, 2024, the Consumer Products segment achieved net sales of $54,121,000, reflecting a 4% increase from the previous year, driven partly by retail partnerships.

Distribution through healthcare practitioners

The company also sells its products through healthcare practitioners, offering specialized NAD+ test kits exclusively to this channel. This distribution method not only enhances credibility but also allows ChromaDex to tap into the growing market of health-conscious consumers seeking professional recommendations. The Analytical Reference Standards and Services segment generated $784,000 in net sales for the three months ended September 30, 2024, indicating steady demand for these specialized products.

Online marketplaces and e-commerce platforms

In addition to its own website, ChromaDex utilizes third-party online marketplaces to reach a broader audience. For the nine months ended September 30, 2024, total net sales from all segments reached $70,472,000, driven largely by the increase in online sales through various e-commerce platforms.

Channel	Net Sales (Q3 2024)	Growth Rate	Contribution to Total Sales
Direct-to-consumer (Website)	$18,123,000	4%	70.8%
Retail Partnerships	Included in Consumer Products	4%	27.5%
Healthcare Practitioners	$784,000	17%	3.0%
Online Marketplaces	Included in Total Net Sales	31%	Not specified

ChromaDex Corporation (CDXC) - Business Model: Customer Segments

Health-conscious consumers seeking dietary supplements

ChromaDex targets health-conscious consumers primarily through its flagship product, Tru Niagen®, which is marketed as a dietary supplement that supports cellular health by increasing levels of NAD+ (nicotinamide adenine dinucleotide). In the nine months ended September 30, 2024, the net sales from the Consumer Products segment, which includes Tru Niagen®, amounted to $54.1 million, reflecting a 4% increase from $51.9 million in the same period of 2023.

Aging population interested in anti-aging solutions

The aging population is a significant customer segment for ChromaDex. This demographic is increasingly seeking products that promote longevity and vitality. In 2024, the company reported that sales of Tru Niagen® have been positively influenced by the growing awareness of NAD+ and its benefits for aging. The company's marketing strategies are tailored to highlight these benefits, which resonate with older consumers looking for effective anti-aging solutions.

Fitness enthusiasts looking for performance enhancement

Fitness enthusiasts represent another vital customer segment for ChromaDex. The company provides products that enhance performance and recovery, appealing to athletes and active individuals. The Ingredients segment, which includes food-grade Niagen®, generated net sales of $14.1 million in the nine months ended September 30, 2024, a substantial increase of 70% compared to $8.3 million in the same period of 2023. This growth indicates a rising demand for performance-enhancing supplements among fitness enthusiasts.

Healthcare professionals recommending products to patients

Healthcare professionals also form a critical segment for ChromaDex as they recommend dietary supplements to their patients. The company provides NAD+ test kits exclusively for healthcare practitioners, which helps in building relationships within the healthcare community. In the three months ended September 30, 2024, the Analytical Reference Standards and Services segment, which includes these kits, generated net sales of $784,000, growing by 17% from $671,000 in the same quarter of the previous year.

Customer Segment	Key Products	Net Sales (2024)	Net Sales (2023)	Growth Rate
Health-conscious consumers	Tru Niagen®	$54.1 million	$51.9 million	4%
Aging population	Tru Niagen®	Data not explicitly available	Data not explicitly available	Data not explicitly available
Fitness enthusiasts	Food-grade Niagen®	$14.1 million	$8.3 million	70%
Healthcare professionals	NAD+ test kits	$784,000	$671,000	17%

ChromaDex Corporation (CDXC) - Business Model: Cost Structure

Research and Development Expenses

For the nine months ended September 30, 2024, ChromaDex reported research and development (R&D) expenses of approximately $4.7 million, compared to $3.8 million in the same period in 2023, reflecting a 24% increase. The quarterly R&D expenses for Q3 2024 were $1.3 million, slightly up from $1.2 million in Q3 2023. The breakdown by segment for the nine months ended September 30, 2024 is as follows:

Segment	Q3 2024 (in thousands)	Q3 2023 (in thousands)	9M 2024 (in thousands)	9M 2023 (in thousands)
Consumer Products	$901	$1,142	$3,731	$3,278
Ingredients	$389	$99	$970	$521
Total R&D Expenses	$1,290	$1,241	$4,701	$3,799

Marketing and Sales Costs

ChromaDex's marketing and sales expenses for the nine months ended September 30, 2024, totaled $20.8 million, up from $19.9 million in 2023. For Q3 2024, these expenses were approximately $7 million compared to $6 million in Q3 2023. The sales and marketing expenses as a percentage of net sales for the respective segments were:

Segment	Q3 2024 (in thousands)	Q3 2023 (in thousands)	9M 2024 (in thousands)	9M 2023 (in thousands)
Consumer Products	$6,918	$5,934	$20,291	$19,599
Ingredients	$6	$0	$84	$37
Analytical Reference Standards	$120	$101	$378	$282
Total Marketing and Sales Expenses	$7,044	$6,035	$20,753	$19,918

Manufacturing and Supply Chain Expenses

ChromaDex has reported total cost of sales of $27.1 million for the nine months ended September 30, 2024, which includes manufacturing and supply chain expenses. The cost of sales breakdown is as follows:

Segment	Q3 2024 (in thousands)	Q3 2023 (in thousands)	9M 2024 (in thousands)	9M 2023 (in thousands)
Consumer Products	$6,512	$6,024	$19,451	$18,387
Ingredients	$2,176	$739	$5,558	$3,852
Analytical Reference Standards	$652	$763	$2,074	$2,292
Total Cost of Sales	$9,340	$7,526	$27,083	$24,531

Administrative and Overhead Costs

General and administrative expenses for the nine months ended September 30, 2024, amounted to $17.3 million, down from $19.6 million in 2023. For Q3 2024, these expenses were $6.3 million compared to $5.8 million in Q3 2023. The following table outlines the general and administrative expenses:

Period	Q3 2024 (in thousands)	Q3 2023 (in thousands)	9M 2024 (in thousands)	9M 2023 (in thousands)
General and Administrative	$6,304	$5,840	$17,320	$19,557

ChromaDex Corporation (CDXC) - Business Model: Revenue Streams

Sales of consumer products, primarily Tru Niagen®

In the third quarter of 2024, ChromaDex reported net sales of $18,123,000 from its consumer products segment, which includes the flagship product, Tru Niagen®. This represents a 4% increase from $17,400,000 in the same quarter of 2023. For the nine months ended September 30, 2024, net sales from consumer products totaled $54,121,000, up from $51,924,000 for the same period in 2023, reflecting a similar 4% growth.

Ingredient sales to manufacturers and outsourcing facilities

ChromaDex's ingredient sales surged significantly, with net sales of $6,673,000 in the third quarter of 2024, a remarkable 369% increase compared to $1,424,000 in Q3 2023. For the nine months ended September 30, 2024, ingredient sales reached $14,062,000, a 70% increase from $8,252,000 in the previous year. This growth was driven by increased demand for food-grade Niagen® and the introduction of pharmaceutical-grade Niagen® to key partners.

Revenue from consulting and analytical services

ChromaDex generated $784,000 from its analytical reference standards and services segment in Q3 2024, up from $671,000 in the same quarter of 2023, marking a 17% increase. For the nine-month period, this segment produced $2,289,000, slightly up from $2,198,000 in 2023. The growth is attributed to stable demand for phytochemical reference standards and related research services.

Potential licensing of proprietary technologies and formulations

ChromaDex continues to explore opportunities for licensing its proprietary technologies and formulations. While specific revenue figures from licensing were not disclosed in the recent financial statements, the strategic focus on this area indicates potential future revenue streams as the company seeks to monetize its intellectual property.

Revenue Stream	Q3 2024 Net Sales (in thousands)	Q3 2023 Net Sales (in thousands)	9M 2024 Net Sales (in thousands)	9M 2023 Net Sales (in thousands)
Consumer Products	$18,123	$17,400	$54,121	$51,924
Ingredients	$6,673	$1,424	$14,062	$8,252
Analytical Services	$784	$671	$2,289	$2,198
Licensing (Potential)	N/A	N/A	N/A	N/A

Overall, ChromaDex Corporation's revenue streams for 2024 reflect a diversified approach, with significant contributions from consumer products and ingredients, alongside steady growth in analytical services. The potential for licensing proprietary technologies remains an area of interest for future revenue generation.

Article updated on 8 Nov 2024

Resources:

1. ChromaDex Corporation (CDXC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ChromaDex Corporation (CDXC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View ChromaDex Corporation (CDXC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.