Date: 5/21/12
Price: Free
SmallCap Network provides comprehensive research and opinions on GLB.L and CDXC.
Glanbia plc Opens a Big Revenue Door for ChromaDex, pTeroPure
The ChromaDex Corp. (OTC:CDXC) growth train continues to not only roll, but pick up steam along the way. The latest stoking of the fire is a major deal with Glanbia plc (LON:GLB) - an Ireland-based ingredients distributor with a footprint that's bigger than most North American investors may realize. This could be a game-changer for CDXC.
It's not exactly as if ChromaDex needed a ton of help, or was scrounging for something to talk about with investors. In mid-December the company told us the first patient for a series of clinical trial of its pTeroPure ingredient had been selected, and then earlier in January we learned its BluScience supplement line was being introduced in a 25,000 unit drug store chain. Yesterday we learned the same guy who helped developed the Gold Bond powder and Ovaltine brand names was now taking on the role of CEO of ChromaDex Corp. These are all good things that clearly add value for shareholders. Neverhteless, the company's put another feather in its cap today.
Glanbia plc probably isn't a household name in North America, and not even because it's not a U.S.-based company. It's a behind the scenes company, supplying ingredients - along with other things - to the world's biggest food producers. For reference, it's Europe's biggest mozzarella cheese supplier, and one of Europe's biggest dairy product suppliers.
It's not just dairy though. The company can provide food ingredients ranging from amino acids to flaxseed to egg replacements to supplements to neutraceuticals. All told, Glanbia plc is expected to earn approximately $135 million Euros for 2011, on revenue of around $2.2 billion Euros. As was said, it's a major operation, even though it's not one investors ever really see.
Anyway, per this morning's news release, Glanbia plc has agreed to become a distributor of ChromaDex Corporation's pTeroPure ingredient.
It's a perfect fit for pTeroPure... essentially a blueberry extract with an amazing number of health benefits, including anti-aging, heart health, weight management, and mental focus. One of the clinical trials of pTeroPure - the one with the first enrollee mentioned above - may also verify that pTeroPure can reduce cholesterol.
Glanbia's marketing reach is phenomenal, as its revenue numbers suggests. The company alone could put ChromaDex and pTeroPure on the proverbial map. That's not even the whole story though.
Yes, Glanbia plc has a massive distribution channel, but it also has a new-found appreciation for the power of supplements and neutraceuticals. Most American investors can't find this information, but last year, Glanbia significantly pumped up its top line with a 35% growth rate in its cheese and global nutritional business... the latter of which will include pTeroPure in 2012. Overall unit volume sales were up 10% last year for Glanbia as well, again mostly driven by growth in its nutritionals and ingredients segments.
Point being, if Glanbia plc can do for ChromaDex Corp. and pTeroPure what it's already proven it can do for other ingredients and nutritionals, this could be a deal worth tens of millions of dollars for CDXC owners. Not bad for a company with a market cap of only $82 million that's already got its pTeroPure-based BluScience line on the shelves of Walgreens and GNS stores.
It may be time to start accepting that ChromaDex is everything it's cracked up to be, and more.
It's not exactly as if ChromaDex needed a ton of help, or was scrounging for something to talk about with investors. In mid-December the company told us the first patient for a series of clinical trial of its pTeroPure ingredient had been selected, and then earlier in January we learned its BluScience supplement line was being introduced in a 25,000 unit drug store chain. Yesterday we learned the same guy who helped developed the Gold Bond powder and Ovaltine brand names was now taking on the role of CEO of ChromaDex Corp. These are all good things that clearly add value for shareholders. Neverhteless, the company's put another feather in its cap today.
Glanbia plc probably isn't a household name in North America, and not even because it's not a U.S.-based company. It's a behind the scenes company, supplying ingredients - along with other things - to the world's biggest food producers. For reference, it's Europe's biggest mozzarella cheese supplier, and one of Europe's biggest dairy product suppliers.
It's not just dairy though. The company can provide food ingredients ranging from amino acids to flaxseed to egg replacements to supplements to neutraceuticals. All told, Glanbia plc is expected to earn approximately $135 million Euros for 2011, on revenue of around $2.2 billion Euros. As was said, it's a major operation, even though it's not one investors ever really see.
Anyway, per this morning's news release, Glanbia plc has agreed to become a distributor of ChromaDex Corporation's pTeroPure ingredient.
It's a perfect fit for pTeroPure... essentially a blueberry extract with an amazing number of health benefits, including anti-aging, heart health, weight management, and mental focus. One of the clinical trials of pTeroPure - the one with the first enrollee mentioned above - may also verify that pTeroPure can reduce cholesterol.
Glanbia's marketing reach is phenomenal, as its revenue numbers suggests. The company alone could put ChromaDex and pTeroPure on the proverbial map. That's not even the whole story though.
Yes, Glanbia plc has a massive distribution channel, but it also has a new-found appreciation for the power of supplements and neutraceuticals. Most American investors can't find this information, but last year, Glanbia significantly pumped up its top line with a 35% growth rate in its cheese and global nutritional business... the latter of which will include pTeroPure in 2012. Overall unit volume sales were up 10% last year for Glanbia as well, again mostly driven by growth in its nutritionals and ingredients segments.
Point being, if Glanbia plc can do for ChromaDex Corp. and pTeroPure what it's already proven it can do for other ingredients and nutritionals, this could be a deal worth tens of millions of dollars for CDXC owners. Not bad for a company with a market cap of only $82 million that's already got its pTeroPure-based BluScience line on the shelves of Walgreens and GNS stores.
It may be time to start accepting that ChromaDex is everything it's cracked up to be, and more.
Matthew Briar is a paid contributor of the SmallCap Network. Matthew Briar's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
