Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (March 2022)
41 slides from Niagen Bioscience's investor presentation, Mar 23, 2022
Slide 1: Investor Presentation
Investor Presentation Rob Fried Chief Executive Officer Kevin Farr Chief Financial Officer Nasdaq: CDXC | March 2022
Slide 2: ChromaDex Investment Highlights
ChromaDex Investment Highlights • Leader in the rapidly growing NAD+ market • Proven and proprietary NAD+ boosting supplement supported by 20 clinical trials • Strong revenue growth (34% CAGR(1)) driven by e-commerce and strong gross margins (61.5% in 2021) • Strategic partnerships to grow global di
Slide 3: Proven & Proprietary NAD+ Boosting Supplement
Proven & Proprietary NAD+ Boosting Supplement Benefitsof Tru Niagen®: Patented · Proven · Trusted · Safe 20 published human clinical studies 30+ owned and licensed patents(1) $85MM+ of third-party research on Niagen® ~$170B in total global addressable vitamins and supplements market, growing 5% annu
Slide 4: Steady E-commerce Growth and Strong Gross Margins
1.3 15.0 27.5 34.5 41.8 2017 2018 2019 2020 2021 Steady E-commerce Growth and Strong Gross Margins Impressive historical revenue growth and significant gross margin expansion 138% CAGR Total 2021 net sales reached $67.4MM with $56.7MM in Tru Niagen® sales. E-commerce represents 62% of the business.
Slide 5: Expanding Global Distribution Footprint with Strategic Partners
Expanding Global Distribution Footprint with Strategic Partners Domestic International Key E-Commerce Platforms TruNiagen.com Amazon Pro.truniagen.com (HCP) Amazon Tmall JD.com Tru Niagen® Sales Mix(1) 69% 31% Key B2B / Distribution Partners(2) Key Niagen® Ingredient Partners(3) 5(1) Based on full y
Slide 6: Significant Opportunity Driven by Product Innovation & Benefit Claims
Significant Opportunity Driven by Product Innovation & Benefit Claims US Dietary Supplements – Health Conditions linked to active/completed Niagen® studies and products sold by company(3) • E.g. healthy aging, general health, immune health, heart, brain/cognitive, sleep support, mood/stress, sports/
Slide 7: ChromaDex at a Glance
ChromaDex at a Glance Revenue $67.4MM in 2021, up 14% over 2020 Financial Highlights Adjusted EBITDA(1) excl. legal ($2.5)MM in 2021 Total Cash and Cash Equivalents $28.2MM year-end 2021 Total Debt $0.0MM year-end 2021 Market Cap $169MM as of Mar 21, 2022 Enterprise Value (EV) $141MM as of Mar 21, 2
Slide 8: The Science
The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019) The Science 8
Slide 9: What is NAD and Why is it Essential?
What is NAD and Why is it Essential? Food CO2 NAD+ NADH ADP + Pi ATP Nicotinamide Adenine Dinucleotide (NAD+)… • Mission critical co-enzyme in cellular metabolism • Constantly being consumed and created by cells • Plays a vital role in: • Cellular defense and repair • Energy production and the optim
Slide 10: NAD+ declines by ~50% with age
NAD+ declines by ~50% between the age of 40 and 60 10
Slide 11: NAD+ Declines with Age, Physiological Stress & Disease
11 NAD+ Declines with Age, Physiological Stress & Disease Based on Yoshino et al. (2018) Cell Metabolism Muscle 30-85% Liver 40-90% Adipose 55-75% Brain 35-90% Pancreas 80-85% Spleen 35-40% Heart 30-70% Kidney 15-98% Lung 20-25% Cerebrospinal fluid 86% Skin 40-50% Blood plasma 15-92% Testes 100% Mus
Slide 12: Basic Physiological Functions are NAD+ Dependent
Basic Physiological Functions are NAD+ Dependent INTRINSIC CAPACITY DOMAIN Based on World Health Organization’s definition VITALITY Energy metabolism Hormonal function Cardio-respiratory function Number of clinical studies (active)* 13 Number of clinical studies (complete)* 9 % of all registered Nia
Slide 13: NR Research Impact is Accelerating
13 NR Research Impact* is Accelerating 0 200 400 600 800 1000 1200 1400 1600 1800 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cu m ul at iv e Im pa ct F ac to r Vitality Locomotion Cognition Sensory Psychological Pharmacokinetic/Safety Basic Research Vitality Cognition SensoryPsychological Loc
Slide 14: How is NR Different than other NAD+ Precursors?
How is NR Different than other NAD+ Precursors? Nicotinamide Riboside (NR)… • Novel form of Vitamin B3 • Specific pathway to convert NR into NAD+ (NRK pathway) • More efficient NAD+ precursor than Tryptophan and Nicotinic Acid • NRK genes are activated under conditions of physiologic stress • Theref
Slide 15: Our Solution
15 The most efficient way to safely elevate NAD levels and the only patented form of nicotinamide riboside (Niagen®) available in the world. Our Solution:
Slide 16: Tru Niagen is Scientifically Proven to Increase NAD+
16 Tru Niagen® is Scientifically Proven to Increase NAD+
Slide 17: Regulatory Acceptance and Claims for Niagen
17 Regulatory Acceptance(1) and Claims for Niagen® Country United States European Union(2) Canada Australia Regulatory bodies Food & Drug Administration European Commission Health Canada Therapeutic Goods Administration Regulatory approvals NDIN & GRAS Novel Food Ingredient Natural Health Product Co
Slide 18: 245+ Pre-Clinical & Clinical Studies on NR
18 245+ Pre-Clinical & Clinical Studies on NR Represents $85MM+ of Third-Party Research Remove for publis ed version
Slide 19: Scientific Advisory Board
19 Scientific Advisory Board Charles Brenner, Ph.D. Alfred E Mann Family Foundation Chair, Department of Diabetes & Cancer Metabolism City of Hope World's Foremost Authority on NAD Metabolism Roger Kornberg, Ph.D. Chairman Professor of Structural Biology Stanford University Nobel Prize Winner, Chemi
Slide 20: Strong Intellectual Property Portfolio for NR
20 Strong Intellectual Property Portfolio for NR(1) (1) NR related patents only. ChromaDex owns or licenses additional patents related to other NAD precursors. Patent ID (U.S.) Summary US 8114626 Manufacture of NR via recombinant microorganisms – Charles Brenner of Dartmouth College US 8197807 NR fo
Slide 21: Growing Portfolio of Next Generation NAD+ Precursors
21 NR 31 granted patents NRT 7 granted patents Next Generation NAD+ Precursors Reduced Nicotinamide Riboside NRH NAR Growing Portfolio of Next Generation NAD+ Precursors(1) (1) Owned, co-owned and licensed patents. O HO OH HO N NH2 O Cl- Nicotinamide Riboside O O O O N NH2 O O O O Cl Nicotinamide Ri
Slide 22: Strategic Progress
22 Strategic Progress
Slide 23: Evolution of ChromaDex 2000 - Present
• 2000 – Company was formed (Reference Standards & Analytical Testing Service) • 2002 – Licensed NR patents from Dartmouth • 2003 – Commercialized Niagen® (trademarked NR) 23 Launched Tru Niagen® via E-Commerce Partnered with in Hong Kong 2017 Partnered with in Singapore 2018 Launched Tru Niagen Pro
Slide 24: Management Team
24 Management Team Rob Fried Chief Executive Officer E-Commerce & entertainment industry executive Savoy Pictures, Columbia Pictures, Fried Films, FeeIn, WHN, Healthspan Research Frank Jaksch Executive Chairman Co-founded ChromaDex in 2000 Kevin Farr Chief Financial Officer Former CFO, Mattel PriceW
Slide 25: Global Multi-Channel Distribution Strategy
25(1) Tru Niagen® was launched on www.truniagen.ca and to health care practitioners at Fullscript Canada in December 2018. It was previously sold on www.amazon.ca. Expanded to retail in 2019. (2) Tru Niagen® was launched on Amazon U.K. in June 2018. Launched Tru Niagen® with Superdrug in April 2020.
Slide 26: E-Commerce Platform Drives Consumer Insights
26 E-Commerce Platform Drives Consumer Insights
Slide 27: Strong Global Partners
27 Strong Global Partners (1) Includes all stores owned by A.S. Watson Group. Statistics as of Q2 2018. Announced global supply agreement in December 2018 Launched Celltrient™ Cellular Energy featuring Tru Niagen® in 2020 World’s largest international health & beauty retailer (~15,000 stores)(
Slide 28: Financial Highlights
The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019) 28 Financial Highlights
Slide 29: Steady Sales Growth Driven by E-Commerce
29 Steady Sales Growth Driven by E-Commerce 21.2 31.6 46.3 59.3 67.4 2017 2018 2019 2020 2021 34% CAGR Total sales ($ millions) FY 2020 FY 2021 YoY E-Commerce 34.5 41.8 21% Watson's & Other B2B 12.6 14.9 18% Niagen® Ingredient 7.1 6.7 (6%) Analytical Reference Standards & Services (1) 3.0 3.4 13% Ot
Slide 30: 2021 Full Year Outlook Recap
30 2021 Full Year Outlook Recap (in thousands) 2020 Actual 2021 Outlook 2021 Actual Comments Achieved?(3) Net Sales $59,257 Continued steady revenue growth (No change) $67,449 Total net sales grew by +14% and Tru Niagen® net sales grew by +20% year- over-year Gross Margin % (as a % of net sales) 5
Slide 31: 2022 Financial Outlook
31 2022 Financial Outlook (in thousands) 2020 Actual 2021 Actual 2022 Full Year Outlook Key Drivers Net Sales $59,257 $67,449 +15-20% YoY • Tailwinds: E-Commerce, new partnerships • Headwinds: COVID-19 impact on Watsons and New Zealand and Australia distributor Gross Margin % (as a % of net sales) 5
Slide 32: Significant Improvement in Underlying Business
32 Significant Improvement in Underlying Business (26.0) (20.2) (9.6) (18.9) 2018 2019 2020 2021 Adjusted EBITDA excluding legal improved from a loss of ~$4MM per quarter in 2018 to essentially break-even in 2020 and 2021. Adjusted EBITDA including legal improved from 2018 to 2020 but 2021 reflected
Slide 33: Strong Balance Sheet to Support Growth Investments
33 Strong Balance Sheet to Support Growth Investments We have enough cash to fund the growth objectives of the company and will continue to invest pragmatically. Balance Sheet Key Drivers YoY Investments in brand building and R&D Investments to protect intellectual property Investments in invento
Slide 34: Appendix
The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019) 34 Appendix
Slide 35: 2019 – 2021 YTD Net Sales Summary
35 2019 – 2021 YTD Net Sales Summary Note – Other B2B previously referred to as International / Other (in millions) 2019 2020 2021 Description Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Ecommerce 5.9 6.5 7.1 7.9 27.5 8.2 8.1 8.7 9.5 34.5 9.6 10.6 10.5 11.1 41.8 Watsons 1.3 1.9 2.3 1.9 7.3 1.8 1.3
Slide 36: Q4 2021 vs Q3 2021 Results
36 (in thousands) Q4 2021 Q3 2021 Notes Net Sales 17,759 17,308 Tru Niagen® business down (5)%. E-Commerce up 6%, offset by ANZ distributor (COVID-19 headwinds) and Watsons (catch-up in shipments from supply chain disruptions completed last quarter). Gross Profit % of Net Sales 10,868 61.2% 10,578 6
Slide 37: Q4 2021 vs Q4 2020 Results
37 (in thousands) Q4 2021 Q4 2020 Notes Net Sales 17,759 15,445 Tru Niagen® business up 14% driven by global e-Commerce growth. Niagen® ingredient sales up 14% year-over-year. Gross Profit % of Net Sales 10,868 61.2% 9,421 61.0% Up 20bps driven by product cost savings initiatives, overall scale on s
Slide 38: Quarterly Adjusted EBITDA Summary
38 Q4 2021 Adjusted EBITDA, excluding total legal expense, was a loss of $(1.8) million, compared to a loss of $(1.1) million in the prior year period. Higher sales and gross margins, offset by investments in marketing and R&D to capitalize on growth in the NAD market. Adjusted EBITDA Summary (1) Q4
Slide 39: Adjusted EBITDA 2018-2021
39 2021 Adjusted EBITDA excluding total legal expense was a loss of $(2.5) million, compared to a loss of $(1.0) million in the prior year primarily due to higher marketing investments. Adjusted EBITDA (2018-2021) (In thousands) December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021
Slide 40: Contact Info
The information contained in this documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent (2019) 40 Contact Info Brianna Gerber Vice President of Finance and Investor Relations T: +
Slide 41: Safe Harbor Statement
41SAFE HARBOR STATEMENT This presentation and other written or oral statements made from time to time by representatives of ChromaDex contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 19