Pharmaceutical company Cardax Inc. saw its loss widen in the third quarter as revenue plunged more than half from the year-earlier period.
The Honolulu-based company, which has been selling its anti-inflammatory product ZanthoSyn since August 2016, said today it had a loss of $1.4 million compared with a loss of $928,888 in the third quarter of 2018. Revenue fell 58.3% to $229,142 from $549,540.
Cardax, though, noted that its revenue was up more than fivefold last quarter from $45,391 in the second quarter. The company said the rebound was driven by a return to normal inventory of wholesale orders of anti-inflammatory product ZanthoSyn by General Nutrition Corp. excluding sales incentives, promotions, discounts, and refunds.
The company also said retail sales of ZanthoSyn to GNC customers also continued strong and that Cardax expects the trend to continue. ZanthoSyn is the top-selling product nationwide in GNC’s antioxidant category for 2019 year to date as well as the top-selling overall product in GNC’s Hawaii stores.
Cardax said its CHASE (Cardiovascular Health Astaxanthin Supplement Evaluation) clinical trial interim review demonstrated beneficial changes in markers of cardiovascular health.
The company raised $1.39 million since the beginning of the third quarter to date via convertible notes, with the majority of this amount to automatically convert to equity upon qualified financing of $5 million or more.