Under the distribution agreement, all cross-border operations in the region will be transitioned to Sinopharm, with Sinopharm investments to amplify Tru Niagen® brand awareness, as a first step in ChromaDex's recently announced China Joint Venture agreement
ChromaDex Corp. (NASDAQ:CDXC) ("the Company") a global bioscience company dedicated to healthy aging, today announced a signed distribution agreement with Sinopharm Xingsha to accelerate cross-border sales of Tru Niagen® into mainland China. Tru Niagen® features ChromaDex's proprietary Niagen® (patented nicotinamide riboside or NR) ingredient, which is the world's most efficient NAD+ (nicotinamide adenine dinucleotide) precursor on the market, particularly over NMN (nicotinamide mononucleotide). Sinopharm Xingsha is the main platform of Sinopharm Group for food supplements and healthcare products and is a subsidiary of Sinopharm Group, with businesses including pharmaceutical manufacturing, marketing and distribution of drugs, and food supplements and healthcare products. Sinopharm Group is a large healthcare group directly under the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, with a full value chain in the industry covering R&D, manufacturing, logistics and distribution, retail chains, healthcare, engineering services, exhibitions and conferences, international business, and financial services. In line with ChromaDex's recent China Joint Venture announcement, Sinopharm Xingsha will collaborate to secure Health Food Registration in China.
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ChromaDex CEO, Rob Fried, signs Sinopharm Xingsha distribution agreement (Photo: Business Wire)
"We are delighted to announce the official launch of our partnership with Sinopharm Xingsha which will support accelerated cross-border sales of Tru Niagen® across mainland China," said Rob Fried, CEO of ChromaDex. "China's marketplace remains strategically important with more than 260 million people over the age of 60 and it is our intention to become the leading provider of NAD+ boosting supplements in the market."
According to a recently commissioned "Sizing the Market for NAD+ Supplements in China" report by Euromonitor, white space is considerable ― growing from a standing start in 2018 to annual NAD+ sales in excess of $700 million in 2021, with leading NMN brands each capturing approximately $30 to $50 million of retail sales. The report further estimates that NAD+ sales will reach in excess of $1.5 billion in 20241.
"ChromaDex is a global leader in the NAD+ supplement market, and Tru Niagen® is a product endorsed by strong science," said Pan Lei, General Manager of Sinopharm Xingsha. "We are very honored to have this strategic cooperation with ChromaDex to jointly bring this excellent product to the Chinese consumers. Going forward, Sinopharm Xingsha will leverage its advantages and expertise in brand incubation, promotion, marketing, online and offline channel construction, registration of imported health supplements, etc., to offer a full range of services to support the brand promotion and sales channel development of Tru Niagen® products in China."
Tru Niagen® is currently available for sale to Chinese consumers on several cross-border online and marketplace platforms, primarily through T-mall, and JD. Under terms of the agreement, ChromaDex's existing cross-border activity in this region will be transitioned to Sinopharm Xingsha in a coordinated effort to accelerate growth of Tru Niagen® by leveraging Sinopharm's established infrastructure, and marketing capabilities. The expansion of Tru Niagen® will be supported by the introduction of a new premium Tru Niagen® SKU, which will be launched in the future. Tru Niagen® is also available in over 200 Watsons stores in Hong Kong and Macau, as well as over 100 Watsons stores in Singapore.
Tru Niagen®, featuring Niagen®, is one of the top-selling brands in the Vitamin B3 category on Amazon U.S. for boosting NAD+ levels. Supplementation with Niagen® is backed by 20 published and peer-reviewed clinical trials. Niagen® has achieved regulatory acceptance for use in supplements by the US FDA. Additionally, Niagen® has been approved for use in food supplements by the European Commission, complementary medicines by the Therapeutic Goods Administration of Australia (TGA), medical foods by the Brazilian Health Regulatory Agency (ANVISA), and medical foods by the Food Standards Australia New Zealand (FSANZ). Tru Niagen® has also been approved by Health Canada as a Natural Health Product. ChromaDex continues to lead the industry in NAD+ research, with the ChromaDex External Research Program (CERPTM) celebrating over 250 material transfer agreements (MTAs) featuring Niagen® and other proprietary ingredients.