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ChromaDex. Corp. will sell its analytical testing business to Laboratory Corp. of America Holdings in Burlington, N.C. The deal, on undisclosed terms is expected to close in September.
ChromaDex Founder and Chief Executive Frank Jaksch said the company will help transition the business to LabCorp’s Covance Food Solutions unit. LabCorp bought Princeton, N.J.-based Covance Inc. and its drug development services in 2014.
Irvine-based ChromaDex develops and commercializes proprietary ingredients used in dietary supplement, food, beverage, skin care and pharmaceutical products. It provides preclinical and clinical safety testing services through its regulatory consulting segment.
The company is exploring the pharmaceutical use of flagship chemical nicotinamide riboside, trademarked as Niagen, as a therapy for Cockayne Syndrome, a rare pediatric disease characterized by failure to gain weight and grow at an expected rate.
Chromadex recently traded at $3.27 a share for a $143 million market cap. It generated revenue of $26.8 million last year.
LabCorp recently traded at $154 a share and a $16 billion market cap. It has more than 52,000 employees in some 60 countries.