New agreement extends non-exclusive rights to sell Niagen in multi-ingredient dietary supplements with initial ingredient purchase commitment of $1.975 million.
ChromaDex has announced a new long-term commercial licence and supply agreement with Nestlé Health Science.
The new agreement expands the previous supply agreement (which was executed in 2018) and now includes 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.
Longevity.Technology: Earlier this week we covered the announcement that ChromaDex had released promising findings from its clinical trial investigating how nicotinamide riboside can improve outcomes for those suffering heart failure. Now the company is building on that success by leveraging Nestlé’s position as a world player in science-based nutritional health solutions to build out its global presence – the Milky Bars are on them.
Rob 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 .”
Approved 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, and 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, ChromaDex entered into a securities purchase agreement where Nestlé Health Science agreed to purchase 3,816,794 shares of the ChromaDex’s common stock for gross proceeds of $5 million pursuant to a registered direct offering.
“We are excited with this opportunity to incorporate the leading booster of nicotinamide adenine dinucleotide (NAD+) into our growing portfolio of science-based consumer health, medical nutrition and supplement products,” said Greg Behar, CEO of Nestlé Health Science.
“As lifespans increase globally, it’s critical that we find innovative, nutritional solutions to help people stay active and healthy for as long as possible. Niagen is a premium, science backed ingredient that fits perfectly within our portfolio, increasing NAD+ for cellular energy support, so consumers can continue to do the things they love .”
ChromaDex’s proprietary ingredient, Niagen, is sold directly to consumers as Tru Niagen, which is backed by clinical and scientific research establishing its safety and efficacy at elevating the coenzyme nicotinamide adenine dinucleotide (NAD+) in humans. NAD+ is an important metabolite involved in virtually every metabolic process in the body, most notably energy metabolism and cell repair.