Niagen Bioscience Inc Q3 FY2025 earnings call

• Recorded $34 million in revenue, a 33% YOY increase, with net income of $4.6 million vs $1.9 million last year. Ended the quarter with $64.3 million in cash and no debt.
• E-commerce net sales of $19 million, a 29% YOY increase; distribution business grew 109% YOY to $7 million; ingredient business $6.9 million.
• Onboarded a new strategic partner with access to over 8,000 medical and health care practitioners to strengthen Tru Niagen distributor revenues.
• Niagen Plus at-home injection kits launched, available with prescription; onboarded over 1,000 wellness and health care clinics for Niagen Plus.
• FDA reversed NMN marketing determination, but NMN sales continue with potential patent issues; Niagen is the superior NAD booster with over 40 peer-reviewed studies.
• Phase III NOPARK clinical trial for Parkinson's disease completed in June, results expected in early 2026; ongoing work on AT indication and investigational new drug application.

For the third quarter, Niagen Biosciences reported $34 million in revenue. The e-commerce business (Tru Niagen) delivered net sales of $19 million, a 29% increase year-over-year. The distribution business grew 109% year-over-year with $7 million in revenue. The Niagen ingredient business remained steady, bringing in $6.9 million. The e-commerce segment contributed 55.9% of total revenue ($19M/$34M), the distribution business 20.6% ($7M/$34M), and the ingredient business 20.3% ($6.9M/$34M).

• Revised revenue growth guidance from 22%-27% YOY to 25%-30% YOY.
• Revised R&D expenses to decline as a percentage of net sales while increasing in absolute dollars.
• Revised general and administrative expenses to be up $8 million to $9 million YOY compared to previous expectation of $7 million to $8 million increase.

• Global market and economic conditions impacting business.
• Challenges with NMN market, including potential patent infringements and FDA challenges.
• Pricing and volume challenges in the Niagen Plus pharmaceutical segment due to high costs and limited market adoption.

Q: Curious with the new partnership for IV, what's the uptake looking like and feedback from clinics?

A: It's early, just started the process towards end of quarter, no direct feedback yet.

Q: Where does AboutNAD fit in the marketing funnel?

A: AboutNAD is an objective information resource for journalists, investors, researchers, not part of the purchasing funnel.

Q: On at-home injection rollout, how soon on telehealth platform?

A: Telehealth functionality not expected for maybe 2 quarters, middle of next year; existing telehealth companies may offer it, studies on Niagen injection and GLP-1 complementarity ongoing.

Q: Thoughts on establishing stand-alone entity for pharmaceutical pursuits?

A: Likely to set up stand-alone entity, waiting for study results and pharma discussions to dictate timing.

Q: Impact of FDA NMN decision on customer pricing and ability to hold price?

A: Most ingredient partners understand NMN situation, but they often ask to cut prices regardless of FDA decision.

Q: Gross margin normalization expectations?

A: Gross margin improved due to product mix, lower cost inventory, etc., but will normalize once lower cost inventory is used up, with improvement expected compared to last year.