Advertisement

A new lawsuit alleges anti-aging startup Elysium Health hasn't paid its sole supplier

A new lawsuit alleges anti-aging startup Elysium Health hasn't paid its sole supplier
From TechCrunch - January 16, 2017

Chromadex, the sole supplier of pterostilbene and Nicotinamide Riboside (NR), the two ingredients in anti-aging startup Elysiums products, is suing Elysium Health forfailure tomake payments on those ingredients and for breach of a trademark and royalties agreement.

According to a documenton Chromadexs website, dated Dec 29, 2106, Elysiummade false promises and representations to induce ChromaDex into providing large supplies of pTeroPure and NIAGEN.

Elysium uses pterostilbene and NR (or NIAGEN)a patented and proprietary ingredient made by ChromaDexin its Basis product. The suit alleges Elysium agreed to order these products through ChromaDex in February of 2104. However, the startup supposedly broke that agreement by failing to pay shortly after in June of 2014.

ChromaDex normally supplies itsNR ingredient to about a dozen consumer brands under the NIAGEN trademark but had worked out a special deal with Elysium so the startup did not have to mention where its ingredients came from. The document further alleges Elysium failed to pay for and is in breach of a trademark and royalties agreement for the NIAGEN product and now ChromaDex is seeking punitive damages, money damages and interest, for an unspecified amount, the lawsuit reads.

Despite the non-payment issues, it seems the two companies carried on with their partnership. Then Elysium suddenly quadrupled its order of the products from Chromadex in June of 2016

The price which Elysium demanded in the much larger June order was about half of the originally agreed upon amount and ChromaDex says Elysium would have known that lower price would not be accepted. ChromaDex says it reached out to discuss the matter with Elysium and the suit says Elysium, though not happy, agreed to order more.

Then Elysium proceeded to hire Mark Morris, ChromaDexs VP of business development, away from the company last August, naming him Elysiums new head ofscientific technology. Elysium stopped ordering from the company thereafter.

The lawsuit says ChromaDex CEO Frank Jaksch tried to reach out to resolve these and the non-payment issues but Elysium ignored his efforts.

Advertisement

Continue reading at TechCrunch »