Why Are ChromaDex Shares Trading Lower On Wednesday?

ChromaDex Corp CDXC dropped over 20% during the premarket despite its announcement over plans to appeal a court ruling issued by the U.S. District Court for the District of Delaware in a patent infringement lawsuit against Elysium Health.
Related: ChromaDex Shares Jump on Tru Niagen's Launch In Walmart Stores.
The Company licenses two patents from the Trustees of Dartmouth College, giving it exclusive rights to the NAD precursor nicotinamide riboside (NR) commercialized as the flagship ingredient Niagen.
Niagen has regulatory acceptance from the FDA, Health Canada, the European Commission, and the Therapeutic Goods Administration of Australia, the Company says.
"ChromaDex retains a strong and growing intellectual property portfolio for nicotinamide riboside," the Company said in a statement.
A separate lawsuit filed by the ChromaDex against Elysium in the U.S. District Court for the Central District of California is expected to go into trial on September 21.
The outcome of ongoing litigation with Elysium "could materially harm our business, results of operations, financial condition, and cash flows," the Company mentioned in its latest 10-Q filing.
Price Action: CDXC shares are down 22.60% at $5.39 during the premarket session on the last check Wednesday.