Niagen Bioscience, Inc. · NASDAQ:NAGE
Niagen Bioscience — ChromaDex — Investor Presentation (April 2017)
49 slides from Niagen Bioscience's investor presentation, Apr 19, 2017
Slide 1: Investor Presentation April 2017
analytics ChromaDex. CONNECTION Investor Presentation onils April 2017 ingredients
Slide 2: Disclaimers
Disclaimers Safe Harbor 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 ‘mended, and Section 21£ of the Securities Exchange Act of 19
Slide 3: We are the Proprietary Ingredient Solution
We are the Proprietary Ingredient Solution * ChromaDex is an innovator of patented health, wellness, and nutritional ingredients that creates science-based solutions for dietary supplements, food and beverage, skin care, sports nutrition, and pharmaceutical products. ¢ As a result of our relationshi
Slide 4: Positioned in Large End-Markets
Positioned in Large End-Markets Dietary Supplements (ey 30 Sports Nutrition [ES Functional Food & Beverage Medical Foods |) 9 Infant Formula | 8s Skin Care/Cosmetics | 25 Pharmaceutical fe 950 kg *Estimated annual sales of end-markets in $ Billions ChromaDex CONNECTION
Slide 5: Early Stages of Realizing the Opportunity
Early Stages of Realizing the Opportunity Total Revenue Ingredients Revenue 2013 2014 2015 2016 2013 2014 2015 2016 — : Schromaex £ OS OF
Slide 6: Ingredient Consumer Adoption Model
Ingredient Consumer Adoption Model 1500 Tech Adaptors | Innovators Early Mainstream 1 Late Mainstream | (Need it or addresses an issue , (Want it - fits their lifestyle) (Want validation via the (Commoditized/Proven/ that is real or percieved) | | innovators before adoption) | ‘Affordable) ! Less th
Slide 7: Unique Business Model Providing First-Mover Advantages with a Network of Relationships
Unique Business Model Providing First-Mover Advantages with a Network of Relationships bee ie - Seg. se “S97 Over 1500 Industry BSS es y S i Over 250 University & ~ customers from our reference an if Research Institute customers // \\. standards and analytical \ / \ / PA \ chemistry \ i aS 1 1 ee 1
Slide 8: Developed from a Core of Complementary Services
Developed from a Core of Complementary Services Natural product Analytical & fine chemicals chemistry-based services * Largest phytochemical catalog in the world * Over 2,200 products * Used for QA & R&D * Irvine, CA ChromaDex CONNECTION Analytical testing of products for identity, potency, contamin
Slide 9: We Have a Formula for Building a Portfolio of Solutions
We Have a Formula for Building a Portfolio of Solutions Commercialize NIAGEN. pleréPure =a Discover novel, early-stage Exclusively license these Develop ingredient Commercialize in multi- PUPRENERGY ingredient technologies, ingredient technologies technologies utilizing existing _ billion-dollar Con
Slide 10: Current Portfolio of Five Proprietary Ingredients
Current Portfolio of Five Proprietary Ingredients N IAG E N \ NIAGEN® is the first and only commercially available form of nicotinamide * | riboside (NR), a highly effective NAD+ booster. & , | plerePure i pTeroPure® Pterostilbene is a phytoalexin (plant defense system) found | naturally in blueberr
Slide 11: Lead Ingredient - NIAGEN
Lead Ingredient - N\|AGEN. + NIAGEN® is the 1st and only commercially available nicotinamide riboside (NR). + ChromaDex launched NIAGEN ® in May 2013. + Nicotinamide Riboside (NR) is a vitamin B3 metabolite found naturally in trace amounts of milk. + NIAGEN® is an innovative patent-protected ingredi
Slide 12: Why NAD+ is Important
Why NAD+ is Important “Nicotinamide adenine dinucleotide (NAD*) is a coenzyme found in all living cells... Cellular NAD* concentrations change during aging, and modulation of NAD* usage or production can prolong both health span and life span.” Dr. Eric Verdin — Gladstone Institutes Abstract from Sc
Slide 13: Aging and NAD+ Deficiency
Aging and NAD+ Deficiency + Many nutritionally addressable health problems are linked to NAD+ deficiency. + NAD+ depletion is the nutrient deficiency of aging or age related disease. + Nicotinamide Adenine Dinucleotide (NAD+) is the mission critical co-enzyme in cellular metabolism. + NR is the most
Slide 14: The Science of Living Longer
The Science of Living Longer + Research studying the science of aging is on the rise + Understanding the relationship between aging and age-related diseases + The term “Healthspan”, as opposed to lifespan, created to describe the time we spend free of the costly and harmful conditions of old age, li
Slide 15: Pharmaceutical Interest in Aging as a Disease
Pharmaceutical Interest in Aging as a Disease Calico * Calico, a Google-backed life sciences company founded by Arthur D. Levinson, former chairman and CEO of Genentech, recently entered the space with additional backing from AbbVie. Theta Opry B=" /E Grete /S20K Hors *Calico’s area of focus is agin
Slide 16: NIAGEN is a Platform Ingredient
NIAGEN. is a Platform Ingredient er rey Market Addressable Sai TH 1 2 SEES Size* Market Size* as $1.08 $500M $500M MASELE ARMOR met $500M $200-$300M $250M GOOSCOKRKR F | $1.08 Q *Company Estimate sondords 16 ChromaDex é CONNECTION onotics
Slide 17: Regulatory Milestones in Place
Regulatory Milestones in Place New Dietary Ingredient (NDI) + November 16th, 2015 received New Dietary Ingredient status from FDA for NAGEN® + NDI status opens the door for mainstream commercialization of NAAGEN® in dietary supplements + Achieving NDI status is a significant milestone given that the
Slide 18: Research Collaborations with NIAGEN
Research Collaborations with N\| AGEN. More than 100 pre-clinical and clinical studies represent over $50 million of non-paid research for ChromaDex National institute on Aging UNIVERSITYOF BIRMINGHAM St. JUDE MEDICAL © UCIwine =m Massachusetts | l| | I Institute of Technology UCDAVIS UNIVERSITY OF
Slide 19: NR Human Clinical Trials 2016 - 2017
NR Human Clinical Trials 2016 - 2017 ACTIVE NIH - NHLBI for Obesity Related Inflammation - Immune ChromaDex KGK Chronic Study - NAD metabolome CU Boulder - Aging and Physiology University of Washington- Human PK - Heart Failure Trial Birmingham - Sports Exercise Trial Copenhagen - Obesity & Pre-Diab
Slide 20: Pharmaceutical Opportunities
Pharmaceutical Opportunities NIH Study esi Results of a study conducted by the National Institutes of Health (NIH) in collaboration with ChromaDex published in November 2014 indicate that NR was effective at restoring NAD+ levels Os, ase in mitochondria and rescuing phenotypes associated with a deva
Slide 21: Direct-to-Consumer Overview
Direct-to-Consumer Overview * ChromaDex is executing a strategy to brand, position and sell a NIAGEN® consumer product, to penetrate the US direct-to-consumer (DTC) segment with the intent of significantly and sustainably growing the consumer base of NR. * One of the most on-trend consumer sales cha
Slide 22: US Supplement Fast Facts
US Supplement Fast Facts” * In 2015, the US Supplement * CAGR for the next 5 years is projected Industry had a consumer value to be 6.2%, with the industry reaching of $38.8 Billion $52 .5 billion in 2020. ‘Speciaity/Other 2016 2017e 2018¢ 2019e 2020e 18% Vitamins 12,812 13,460 14,097 14,800 15,553
Slide 23: In 2015, internet sales accounted for 6% of total supplement sales
In 2015, internet sales accounted for 6% of total supplement sales or $2.5 billion By 2020, internet sales are expect to reach over $4.0 billion Billion US Supplement Sales by Chann and account for 8% of total supplement sales US Supplement Internet Sales by Product Category, 2016e-2020e 2016e 2o17e
Slide 24: NR Sales and Consumer Penetration
NR Sales and Consumer Penetration Thus far, sales of NR have skewed more heavily to the internet channel than the Supplement industry in total a | Kgs of NR Ingredient sold by ChromaDex 8,200 11,500 15,675 # Bottles of consumer supplement brands equivalent* 1.0 million 1.4 million 1.9 million 70% “‘
Slide 25: Scientific Advisory Board
German Kornberg Beudeker y ChromaDex. Brenner Roberts SCIENTIFIC ADVISORY BOARD * ChromaDex established its first formal Scientific Advisory Board (SAB) in July 2014 ¢ Nobel Laureate Professor Roger Kornberg joined as Chair * The other SAB members are: Chromadex hk OP CONNECTION Dr. Charles Brenner,
Slide 26: ChromaDex is Following the Successful Model of Other Ingredient Technology Companies
ChromaDex is Following the Successful Model of Other Ingredient Technology Companies MARTEK 2” Patented Vegetarian life enriched Omega-3 Ingredient SontN: wellness through innovation fortitech STRATEGIC MUTRITION® Inger Z Fiat Nutraceuticals Incorporated ChromaDex CONNECTION Fish Oil Omega-3 Ingredi
Slide 27: Highlights
Highlights * We believe the NIAGEN® opportunity is enormous. * Science has proven that NAD+ levels directly impact aging and age-related disease. * NR is one of the safest and most efficient ways of increasing NAD+. * ChromaDex has a rock solid patent portfolio surrounding NR. * Active business deve
Slide 28: Supporting Ingredient Discussion
ChromaDex. CONNECTION Supporting Ingredient Discussion
Slide 29: What is NAD+ and Why is it Essential?
What is NAD+ and Why is it Essential? * Nicotinamide Adenine Dinucleotide (NAD+) is the NAD+ Role in Cellular Energy Production central redox coenzyme in cellular metabolism"? Leading to Health Improvement’ Oxidative stress defenses Creation of cellular building blocks* * NAD+ is the consumed substr
Slide 30: NAD+ Reverses Mitochondrial Dysfunction
NAD+ Reverses Mitochondrial Dysfunction * NR treatment significantly increased NAD+ in tissues with high mitochondria content. Mouse Data 0,5 * ¢ go mote £3 ™ NR 9° 0,3 = 0, as fo} Z_E 0,2 * == " as 0 , Lael Brain Muscle Liver BAT WAT y r¢ ChromaDex é 7) f 0 CONNECTION Mitochondnial size (relative t
Slide 31: NAD+ and Mitochondrial Function Declines with Aging
NAD+ and Mitochondrial Function Declines with Aging =e Human Data g g Human Data — NAD+ levels decrease dramatically with age 2 Mouse Data — Energy, mitochondrial activity, mitochondrial DNA 3 | i population and integrity all decrease with age 2 Se Rote 2 ee 20 60 80 100 fags (years) = 10 Mouse Data
Slide 32: NR and Mitochondrial Function
NR and Mitochondrial Function Mitochondria NR treatment significantly enhanced mitochondrial function and mitochondrial biogenesis ~ & v &) al * Source: Canto, et al; Cell Metabolism; 15 : 838 — 847, 6 June 2012 7 ChromaDex onotytics consulting ingredients standards 32
Slide 33: ChromaDex Funded NR Clinical Study Summary
ChromaDex Funded NR Clinical Study Summary Results of First Study + In August 2015, initial results of the first human clinical study for the company's NIAGEN® branded nicotinamide riboside (NR) indicate that the study met its primary endpoint. The results demonstrated that a single dose of NR resul
Slide 34: Patent Portfolio Controlling the NAD+ Precursor Space
Patent Portfolio Controlling the NAD+ Precursor Space ChromaDex owns or controls commercially viable compounds that can act as NAD+ Precursors, putting ChromaDex in the enviable position of “gatekeeper” to the entire NAD+ precursor category. US 8106184: — Synthetic manufacture of NR — Anthony Sauve
Slide 35: pTeroPure is ChromaDex's Commercialized, IP-backed, Clinically-Studied Branded Pterostilbene
pTeroPure® is ChromaDex’s Commercialized, IP-backed, Clinically-Studied Branded Pterostilbene Overview * Pterostilbene is a phytoalexin (plant defense system) found naturally in blueberries, but only in limited quantities * Closely related to resveratrol (an antioxidant found in grapes), but with ke
Slide 36: pTeroPure Phase 2/3 Clinical Study Lowering Blood Pressure
pTeroPure® was Evaluated in a Phase 2/3 Clinical Study Which Showed Statistically Significant Results for its Ability to Lower Blood Pressure Clinical trial completed at the University of Mississippi -Double-blind, randomized, placebo-controlled, IRB-reviewed *80 patients, 4 arms. Eight-week duratio
Slide 37: Uses of pTeroPure in the Skincare and Sun Protection Markets
Uses of pTeroPure® in the Skincare and Sun Protection Markets Topical Pterostilbene Study + On April 3°, 2015 The University of Valencia and Green Molecular, S.L. published a study indicating that pterostilbene prevented acute ultraviolet B radiation ("UVB"), radiation-induced inflammation and photo
Slide 38: PURENERGY is ChromaDex's Patent Protected and Clinically Studied Caffeine Ingredient
PURENERGY® is ChromaDex’s Patent Protected and Clinically Studied Caffeine Ingredient , a ae pleréPure + Caffeine = PURENERGY Overview + By cocrystallizing caffeine with ChromaDex’s pTeroPure® pterostilbene, caffeine’s energy boost is sustained for at least 6 hours!. + PURENERGY® also results in a m
Slide 39: PURENERGY Clinical Results - 2013
PURENERGY® Clinical Results - 2013 The cross-over, clinical study compared the cocrystallized caffeine in PURENERGY® with ordinary caffeine Study Results PURENERGY” delivers almost 30% more caffeine into the blood than ordinary caffeine. The rate of caffeine absorption is significantly slower with P
Slide 40: Ingredient Development Pipeline
Ingredient Development Pipeline Product Potential Benefits Projected Launch AnthOrigin™ Purple Corn Husk Extract Launched (>15% Anthocyanin) 2016 Pipeline Product 2 NAD Metabolite 1 2017 Pipeline Product 3 NAD Metabolite 2 2017 Pipeline Product 4 NAD Metabolite 3 2018 Pipeline Product 5 NAD Metaboli
Slide 41: Supplement Market Data
ChromaDex. CONNECTION Supplement Market Data
Slide 42: The addressable market segment
The addressable market segment in which for Nicotinamide Riboside plays is at least $11.5 billion of the $38.8 billion. Age-related health concerns include: - Cognition - Energy - Vision - Heart - Digestion - Joint/Mobility - Bone density Digestion * These presented charts and data are used under pe
Slide 43: Intersection of DTC and age-related Supplements
Intersection of DTC and age-related Supplements: $ millions Total 2015 | Age- Age related X sales related internet sales** Vitamins 12,200 5,899 295 Herbs & Botanicals 6,900 995 40 Specialty 7,200 3,089 216 Minerals 2,700 1,485 74 Meal Replacement 4,514 ----* Sports Nutrition 5,300 ----* Totals 38,8
Slide 44: ChromaDex.
ChromaDex. CONNECTION
Slide 45: Statement of Operations
Statement of Operations! Years Ended December 31, 2016 and January 2, 2016 Sales, net Cost of sales Gross profit Operating expenses. Sales and marketing Research and deveopment General and administrative Operating expenses Operating loss Nonoperating income (expense): Interest income Interest expens
Slide 46: Balance Sheet
Balance Sheet! December 31, 2016 and January 2, 2016 2016 2015 Assets Current Assets Cash $ 1,642,429 § 5,549,672 Trade receivables 5,852,030 2,450,591 Inventories 7,912,630 8,173,799 Prepaid expenses and other assets 329,854 373,567 Total current assets 15,736,943 Leasehold Improvements and Equipme
Slide 47: Cash Flows
Cash Flows! Years Ended December 31, 2016 and January 2, 2016 2016 2015 Cash Flows From Operating Activities Net loss $ (2,928,185) $ (2,771,067) Adjustments to reconcile net loss to net cash used in operating activities. 2,756,838 2,865,585 Changes in operating assets and liabilities: (2,765,249) (
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation! Consolidated Statements of Operations (US GAAP) Years Ended December 31, 2016 and January 2, 2016 Effects of Charges associated with Interest, Tax, Depreciation, Amortization and Share-based Compensation Expense Years Ended December 31, 2016 and January 2, 2016 Consolidated
Slide 49: Contact Information
Contact Information ChromaDex CONNECTION ChromaDex Corporation 10005 Muirlands Blvd., Suite G Irvine, CA 92618 Phone: +1-949-419-0288 Fax: +1-949-419-0294 www.chromadex.com Andrew Johnson Director of Investor Relations Phone: +1-949-419-0288 andrewj|@chromadex.com