Chromium picolinate market sees robust growth and high demand

Chromium Picolinate Market Sees Robust Growth and High Demand

THE INCREASING Use of chromium picolinate in dietary supplements and other nutritional products is driving market growth for that compound. The results of clinical trial studies demonstrate the ingredient's health benefits, and demand is strong for products that contain chromium picolinate.

Generally, only small amounts of chromium picolinate are used by the food industry because chromium is a trace element found at low levels in the blood. Industry sources emphasize that chromium is an essential mineral for metabolism and is needed by the body for the normal metabolism of fats, carbohydrates and protein. Chromium picolinate is the most bioavailable source of the mineral and also one of its safest forms.

Growth in this market has been strong recently, says Gerald Shapiro, CFO of Purchase, N.Y.-based AMBI Inc. AMBI's subsidiary, Nutrition 21, supplies chromium picolinate to the US market.

According to San Francisco, Calif.-based SPINS and AC Nielsen, for the 12 months that ended in November 1999, retail sales of chromium picolinate-containing products totaled nearly $494 million in mainstream stores (supermarkets, drug stores and mass merchandisers) and $10.7 million in natural food stores.

The market's dramatic growth is based on research findings. "Chromium picolinate has strong science behind it and in well-controlled clinical studies has been shown to reduce cholesterol and control glucose levels," says a report by analysts at Boston, Mass.-based Adams, Harkness & Hill Inc. (AH&H).

Chromium picolinate is used primarily for weight loss and body composition and to maintain healthy glucose levels-the latter offers significant market potential for type II diabetes applications. AMBI endorses both claims and adds a third: that chromium picolinate assists in maintaining healthy cholesterol levels.

Research indicates that chromium may increase high-density lipoprotein (good cholesterol), reduce body fat, increase lean muscle mass, and help control glucose in individuals with type 11 diabetes. The mineral's role in metabolizing carbohydrates, fats and proteins contributes to its ability to control cholesterol levels and convert fat to lean muscle (body composition).

Chromium picolinate is produced by straightforward chemical synthesis. Its raw materials include trivalent chromium and picolinic acid, says AMBI's Mr. Shapiro. Last year, AMBI had annual sales of $28 million, three-quarters of which were revenues from its ingredients business. Chromium picolinate accounts for a significant portion of those ingredients sales.

AMBI is the only legal domestic supplier of chromium picolinate, which it markets in the US under the tradename Chromax. The company acquired the chromium picolinate business through its acquisition of Nutrition 21 in August 1997. It now has custom manufacturing contracts with several suppliers and operates under an exclusive license from the US Department of Agriculture. AMBI holds the compositionof-matter patent 33,988, which will expire on August 8, 2000.

To mitigate against the expiration of the composition-of-matter patent, AMBI is licensing its function and use patents, which do not expire until 2009, and marketing an improved version of chromium picolinate.

"The company will reap some protection from the continuance of the patent covering structure -function claims," says AH&H. "If resellers of chromium picolinate choose to source the product away from AMBI once the composition-of-matter patent expires, they will not be able to make claims that their chromium picolinate reduces body fat, builds lean muscle, helps manage high cholesterol, or controls glucose, unless AMBI grants a license."

"We maintain a program of vigilance in our market to determine if people are selling chromium illegally," adds Mr. Shapiro.

AMBI, through its Nutrition 21 subsidiary, has already filed suit against four companies that were identified as selling chromium picolinate illegally. AMBI has agreed to a settlement with three of those companies that bars them from any future sales of patent-infringing products.

The fourth company was issued a temporary injunction by a US District Court that precludes it from selling chromium picolinate. The company has requested a negotiated settlement, and AMBI's Nutrition 21 is conducting an investigation to determine the amount of damages, and terms required to reach an agreement. Nutrition 21 is also reviewing evidence implicating additional companies and is preparing to file suit.

Last September, AMBI received the composition-of-matter patent 5,948,772 for a novel chromium picolinate complex, Chromax Plus. This improved complex contains combinations of chromium, picolinic acid and various nutrients for enhancing the benefits of chromium picolinate.

The company recently received two additional US chromium patents. Patent 5,929,066 covers a method of reducing hyperglycemia and stabilizing serum glucose by administering chromium picolinate along with biotin. Patent 5,905,075 relates to new chromium nicotinate compounds.

Outside the US, five companies in India and one in Germany produce chromium picolinate, according to the Directory of World Chemical Producers, published by Dallas, Tex.-based Chemical Information Services Inc. Indian producers include American Remedies Ltd., Armour Chemicals and Polymers Ltd., Bimal Pharma Chem, Process Specialty Chemicals and Shilpa Antibiotics Ltd. In Germany, the producer is Unavera GmbH.

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