H.C. Wainwright & Co. analysts Dr. Raghuram Selvaraju and Mitchell S. Kapoor, in a research report published on July 15, 2024, provided an update on ChromaDex Corp. (CDXC:NASDAQ) following the company's announcement of Niagen+, a pharmaceutical-grade injectable formulation of its patented nicotinamide riboside chloride (NRC). The analysts maintained their Buy rating and a 12-month price target of US$6.00 on the stock.
"Last month, ChromaDex unveiled Niagen+, the first-of-its-kind pharmaceutical-grade NIAGEN (patented nicotinamide riboside chloride or NRC). Authorized by the FDA for compounding by 503B outsourcing facilities, pharmaceutical-grade intravenous (IV) and injectable NRC will be available in IV, shot, and push forms exclusively at clinics, with a prescription," the analysts noted.
Selvaraju and Kapoor highlighted the potential market opportunity, stating, "NIAGEN IV could penetrate the global intravenous hydration therapy market, which was valued at 'US$2.32B globally and US$1.15B in North America (2022),' according to Grand View Research. This includes the NAD+ IV market, which ChromaDex estimates may be valued at over US$100 million in North America alone (2023)."
The analysts emphasized the superior tolerability and shorter infusion time of Niagen IV compared to NAD+ IV, based on findings from the first-in-human clinical trial.
"In a head-to-head comparison with the mainstream alternative, NAD+ IV, NIAGEN IV provided superior tolerability and a 75% shorter infusion time, with blood NAD+ levels peaking faster and higher within three hours post-infusion," they reported.
ChromaDex's strategic plans include launching Niagen+ in limited quantities at select clinics starting next month, with aims to expand availability nationwide. The company is also pursuing patent protection for NRC and other NAD+ precursors for intravenous use.
Recent milestones for ChromaDex include the inclusion in the Russell 2000 Index and the upcoming transition of its Chief Financial Officer, Brianna Gerber.
H.C. Wainwright's valuation methodology for ChromaDex is based on a revenue multiple approach. "We apply a 5.3x revenue multiple to our 12-month top-line estimate of US$102.5M (discounted back at a 12% rate, which translates to US$81.7M), which yields a price objective of US$6 per share with roughly 75.6M shares outstanding as of end-1Q25," the analysts explained.
With a Buy rating and a price target of US$6.00, representing a potential return of approximately 130% from the price at the time of the report of US$2.61, H.C. Wainwright sees significant upside potential for ChromaDex.
The analysts conclude, "In our view, therefore, the advent of NIAGEN IV could usher in a powerful new tailwind for revenue growth at ChromaDex—one that may accelerate the company's path to profitability and that could generate positive cash flow from operations to advance [the] development of other pharmaceutical-grade products."
| Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
- This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
For additional disclosures, please click here.
Disclosures for H.C. Wainwright & Co., ChromaDex Corp., July 15, 2024
This material is confidential and intended for use by Institutional Accounts as defined in FINRA Rule 4512(c). It may also be privileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake, please let us know by e-mail reply to [email protected] and delete it from your system; you may not copy this message or disclose its contents to anyone. The integrity and security of this message cannot be guaranteed on the Internet. H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer. I, Raghuram Selvaraju, Ph.D. and Mitchell S. Kapoor , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies. None of the research analysts or the research analyst’s household has a financial interest in the securities of ChromaDex Corporation (including, without limitation, any option, right, warrant, future, long or short position). As of June 30, 2024 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of ChromaDex Corporation. Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services. Mr. Selvaraju, who is [the][an] author of this report, is the Chairman of and receives compensation from Relief Therapeutics Holding SA, a Swiss, commercial-stage biopharmaceutical company identifying, developing and commercializing novel, patent protected products in selected specialty, rare and ultra-rare disease areas on a global basis ("Relief"). You should consider Mr. Selvaraju's position with Relief when reading this research report. The Firm or its affiliates did not receive compensation from ChromaDex Corporation for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report. The Firm does not make a market in ChromaDex Corporation as of the date of this research report.
The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously. No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additional information available upon request. H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report. H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report. H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice. Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.
