Na­tion­wide sales of Zan­thoSyn help cut Car­dax’s loss

Honolulu Star-Advertiser - - BUSINESS - By Dave Se­gal dse­gal@starad­ver­

Car­dax Inc.’s rev­enue soared last quar­ter as the na­tion­wide launch of the com­pany’s new anti-in­flam­ma­tory prod­uct Zan­thoSyn gen­er­ated strong de­mand. The Honolulu-based com­pany, which be­gan rolling out Zan­thoSyn na­tion­wide Aug. 10 at more than 3,200 Gen­eral Nu­tri­tion Corp. stores, took in rev­enue of $322,000 in the third quar­ter. That was up from $66,237 in the sec­ond quar­ter and $11,160 in the third quar­ter of 2016 when the prod­uct was just get­ting in­tro­duced.

The rev­enue helped nar­row the com­pany’s loss to $363,156 from $482,438 in the year-ear­lier quar­ter. Car­dax more than dou­bled its sales and mar­ket­ing bud­get from the year-ear­lier quar­ter to $164,748 from $63,375.

Car­dax, which didn’t have any rev­enue un­til the launch of Zan­thoSyn, has lost $57.1 mil­lion since the com­pany’s in­cep­tion in March 2010.

Last quar­ter’s rev­enue in­cluded both the ini­tial na­tional or­der of Zan­thoSyn so that GNC could carry it na­tion­wide, as well as in­creased sales of Zan­thoSyn in Hawaii GNC stores. Car­dax in­tro­duced Zan­thoSyn in 29 Hawaii GNC stores in Jan­uary be­fore sub­se­quently land­ing the na­tional or­der from GNC.

“We are very pleased to see a strong trend of ac­cel­er­at­ing sales of Zan­thoSyn,” Car­dax Pres­i­dent and CEO David Wa­tu­mull said Tues­day in a state­ment. “We be­lieve it re­flects our suc­cess­ful sales and mar­ket­ing strat­egy fo­cused on in­creas­ing physi­cian and con­sumer aware­ness of the anti-in­flam­ma­tory health ben­e­fits of Zan­thoSyn.” Car­dax brought Zan­thoSyn to mar­ket in Au­gust 2016 af­ter it re­ceived a GRAS (gen­er­ally re­garded as safe) des­ig­na­tion as part of a Food and Drug Ad­min­is­tra­tion process that de­fined the prod­uct as a di­etary sup­ple­ment. The com­pany ini­tially made the prod­uct avail­able over the counter through its web­site and sought to cap­i­tal­ize on re­la­tion­ships in the sci­en­tific and med­i­cal com­mu­nity to mar­ket the prod­uct. The com­pany said clin­i­cal stud­ies it has done on Zan­thoSyn show the prod­uct has no side ef­fects and is purer and more eas­ily ab­sorbed than nat­u­ral as­tax­an­thin. Car­dax can­not sell the prod­uct as a medicine be­cause the com­pany’s health claims have not been fully eval­u­ated by the FDA. As­tax­an­thin is an anti-in­flam­ma­tory nat­u­rally found in marine or­gan­isms, such as mi­croal­gae, crus­taceans, sal­mon and trout. It is what gives the marine an­i­mals their color. Wa­tu­mull said in­creased cap­i­tal from Zan­thoSyn sales will fuel fur­ther growth and ad­vance de­vel­op­ment of CDX-085, the com­pany’s next-gen­er­a­tion Zan­thoSyn prod­uct. In March, Univer­sity of Hawaii and Car­dax an­nounced that CDX-085 showed the abil­ity to ac­ti­vate the FOX03 gene in mice, which plays a role in long life spans.

In June the Na­tional In­sti­tutes of Health se­lected Car­dax’s syn­thetic as­tax­an­thin com­pound called CDX-085 for its anti-ag­ing In­ter­ven­tions Test­ing Pro­gram.

Car­dax said it had raised $4.1 mil­lion through the first nine months of the year to fund its re­search ef­forts, and plans to raise ad­di­tional money to carry out its busi­ness plan.

The com­pany’s stock fell 10.8 per­cent, or 4 cents, to close at 33 cents Tues­day. The fi­nan­cial re­sults were an­nounced about mid­way through the trad­ing ses­sion. The com­pany’s stock, which traded as high as 54 cents and as low as 7 cents over the past 12 months, is up 200 per­cent this year.



Car­dax Inc.’s prod­uct Zan­thoSyn, shown, helped the com­pany boost its rev­enue with the na­tional launch of the anti-in­flam­ma­tory prod­uct on Aug. 10.

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