The Company derives most of its revenues 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 will be an important source of revenue for years to come, the Company is now transitioning to a new business model.

In the new model, Nutrition 21 is developing therapeutic brands protected by intellectual property and supported by pharmaceutical quality research. 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. The Company has established or will seek a strategic marketing and distribution partner appropriate for each of the identified brand opportunities.

The Company is also developing other patented mineral compounds essential to optimum metabolic health, 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. To date, there are four new clinical development programs under consideration; Zenergen, ASI 749, Zeramax, and CPCH 326, a proprietary weight loss formula.