During its research intensive phase, the Company historically derived its revenues primarily from the sale of its patented ingredients to vitamin and supplement manufacturers. Chromax®, chromium picolinate is the company’s flagship ingredient, for uses in both human and animal nutrition. While ingredient sales to both supplement and food manufacturers are an important source of revenue, in 2006 the Company transitioned to a new business model.  

Backed with clinical substantiation, Nutrition 21 is commercializing branded therapeutic products protected by intellectual property that are supported by pharmaceutical quality research. The Company has established strategic marketing programs and distribution appropriate for each of the identified brand opportunities.

The Company’s chromium-science research platform has generated several newly identified and patented chromium-based formulas and/or applications. Each of the new proprietary formulas is being developed for a distinct therapeutic application that will yield product extension opportunities for its Chromax brand product line. 

In August 2006, the Company acquired Iceland Health, Inc., which had developed a leading brand position in the Omega-3 market, the fastest growing category in the supplement industry due to its established body of scientific evidence and endorsement from the American Heart Association.  Through the acquisition, Nutrition 21 has the exclusive US rights to market and sell fish oil and omega-3 fatty acids that are manufactured by an Iceland company to pharmaceutical standards utilizing a patented distillation process.  The Iceland Health brand product line has two distinct product formulations: one targeting cardiovascular health and one for joint relief. 

The Company is also developing other patented compounds within its target therapeutic indications, which are in early stage development. Rigorous clinical standards imposed by Nutrition 21 require that a patented compound must compare favorably to the conventional drug treatments used to treat the target condition. This strict in-vitro and pre-clinical evaluation criteria must be met, before Nutrition 21 will consider allocating funds for clinical research to support a branded product concept.