Fluxome, a public company operating in Europe and the US developed fermentation technology, which they patented, to produce resveratrol, a compound similar, but superior to pterostilbene. Their cost of production, just as in the case of CDXC, was well above competing sources of the compound. Their market, like CDXC, was small but evolving faster than that for pterostilbene. They, like CDXC, ran out of cash and went into liquidation.
Fluxome was just sold for the grand total of 550 thousand euros, or about $700K in USD. This is a far more realistic scenario for CDXC, than the one their PR firm is promoting.
This seems a more accurate comparison than the one being promoted by the PR company. The first deception is in this PR company written article is the claim that the term "Omega 3 fatty acids" was popularized by Martek. It is rather astonishing and easily disprovable statement. The term was in popular use for more then 20 years before Martex was founded.
In fact, the term Omega 3 fatty acids is almost synonmous with fish oil, not the algae-based additive that Martek introduced.
The omega 3 - DHA market is massive, easily many tens of thousands of times that of Pterostilbene and related compounds. In fact fish oil supplements have been the first or second largest selling nutritional product in both the US and Europe for the past ten or more years. The Martek product offered a vegetable-based alternative to the marine sources of this compound. It tapped into an existing market of massive proportions. There is basically no market for pteroblue.
In fact the market for pterostilbene did not exist until about a year ago, and has failed to grow in any significant way. The compound has not been able to gain traction amongst consumers, and has virtually zero name recognition.
The comparison between the products being sold by CDXC and Martek (now DSM), is fictional, misleading, and deceptive. They actually represent opposite ends of the market and economic spectrums.
The fictional analysis posits that the two companies share histories and therefore the future of CDXC will mirror that of Martek. This is a bit preposterous. Martek developed a proprietary and highly sophisticated technology for the extraction of Omega 3 DHA from a genetically engineered algae. This is serious and valuable intellectual property. They also utilized their own technology to produce and sell a product profitiably.
CDXC has not developed any technology of value. It simply purchased a license from the USDA, of debatable value, to be able to claim that its pterostilbene had anti-cholesterol properties. They then commissioned a study at a single university, which failed to confirm this benefit. This is a far cry from the Martek situation.
Martek produced their own Omega 3 additive for the functional food, primarily baby food, market and their product was accepted with great success by manufacturers. At the time Martek introduced its green omega 3 product, the health benefits of these fatty acids had been well documented by thousands of clinical trials, and the FDA accepted them as a basis for making health claims. The products of CDXC, both current and prospective ones, have no such validation, nor does the FDA permit claims of any type to be make for them.
CDXC buys their pterostilbene from India and simply brands and resells it, at a large and continuing loss, into a minuscule market, less than 0.01% of the size of the Market which Martek sold their product into. It is not a growing market either, as is the Omega 3 market. So where is the comparison between these two companies? If you fail to see it, it is because it does not exist.
Contrary to the conflated representations of the company comparison, the products that CDXC has in their pipeline are even less interesting than pterostilbene. Like pterostilbene, these products are serving a non existent market.
Sharon, thanks for cherry picking a comparable company that is not even remotely close to Chromadex. What you failed to mention was that the management of Chromadex has extremely deep pockets and can keep this company going alot longer than Fluxone was able to. Please be OBJECTIVE when making posts on this board and not making claims that have no basis in fact. Thank you, you may leave now.