Business
ChromaDex and Nestlé Health Science Announce New Niagen® Commercial Supply Agreement and $5 Million Investment
– The new agreement extends non-exclusive rights to sell Niagen® in multi-ingredient dietary supplements – The agreement includes an initial Niagen®
About this update from Niagen Bioscience, Inc.
[{"type":"text","content":"\n– The new agreement extends non-exclusive rights to sell Niagen® in multi-ingredient dietary supplements\n– The agreement includes an initial Niagen® ingredient purchase commitment of $1.975 million in 2022\n– ChromaDex will be eligible to receive commercial milestone payments, as well as tiered royalties, related to the sale of Nestlé’s Niagen® containing products\n\n LOS ANGELES--(BUSINESS WIRE)--\nChromaDex Corp. (NASDAQ:CDXC) (“the Company” or “ChromaDex”) a global bioscience company dedicated to healthy aging, announced today a new long term commercial license and supply agreement with Nestlé Health Science, a global leader in science-based nutritional health solutions. The new agreement expands the previous supply agreement executed in 2018 to include dietary supplements. The agreement provides Nestlé Health Science the non-exclusive right to manufacture, market, distribute, and sell products using nicotinamide riboside or NR, trademarked Niagen®, under its brands world-wide, except where ChromaDex has existing exclusive distribution agreements.\n\nRob Fried, CEO of ChromaDex commented, “Niagen® is one of the most important new ingredients to have emerged in decades and we are excited to work with the marketing and science departments of the largest dietary supplement and food company in the world to help take it to the next level.”\n\nApproved product categories include medical nutritional, functional food and beverage, and multi-ingredient dietary supplements. Consideration for the rights granted to Nestlé Health Science under the agreement include a $1.975 million initial purchase of Niagen®. ChromaDex will also receive certain future commercial milestone payments upon achievement of certain net sales targets and tiered royalties relating to net sales. In conjunction with the agreement, the Company entered into a securities purchase agreement where Nestlé Health Science agreed to purchase 3,816,794 shares of the Company’s common stock, based on the volume weighted average price of the Company’s common stock for the ten trading days preceding October 10, 2022 ($1.31 per share) for gross proceeds of $5 million pursuant to a registered direct offering. The securities purchase agreement contains customary representations, warranties and agreements by the Company and customary conditions to closing.\n\n“We are excited with...