High Cholesterol
Niacin (but not niacinamide) has been used since the 1950s to lower elevated LDL ("bad") cholesterol and triglyceride (fat) levels in the blood and is more effective in increasing HDL ("good") cholesterol levels than other cholesterol-lowering medications. However, side effects can be unpleasant and even dangerous. High doses of niacin cause flushing of the skin (which can be reduced by taking aspirin 30 minutes before the niacin), stomach upset (which usually subsides within a few weeks), headache, dizziness, and blurred vision. There is an increased risk of liver damage. A time-release form of niacin reduces flushing, but its long-term use is associated with liver damage. In addition, niacin can interact with other cholesterol-lowering drugs (see "Possible Interactions"). You should not take niacin at high doses without your doctor's supervision.
Atherosclerosis
Because niacin lowers LDL and triglycerides in the blood, it may help prevent atherosclerosis (hardening of the arteries) and is sometimes prescribed along with other medications. However, niacin also increases levels of homocysteine levels in the blood, which is associated with an increased risk of heart disease. This is another reason you should not take high doses of niacin without your doctor's supervision.
Diabetes
Some evidence suggests that niacinamide (but not niacin) might help delay the onset of insulin dependence (in other words, delay the time that you would need to take insulin) in type 1 diabetes. In type 1 diabetes, the body's immune system mistakenly attacks the cells in the pancreas that make insulin, eventually destroying them. Niacinamide may help protect those cells for a time, but more research is needed to tell for sure.
The effect of niacin on type 2 diabetes is more complicated. People with type 2 diabetes often have high levels of fats and cholesterol in the blood, and niacin, often in conjunction with other drugs, can lower those levels. However, niacin can also raise blood sugar levels, resulting in hyperglycemia, which is particularly dangerous for someone with diabetes. For that reason, anyone with diabetes should take niacin only when directed to do so by their doctor, and should be carefully monitored for hyperglycemia.
Osteoarthritis
One preliminary study suggested that niacinamide may improve arthritis symptoms, including increasing joint mobility and reducing the amount of nonsteroidal anti-inflammatory drugs (NSAIDs) needed. More research is needed to determine whether there is any real benefit.
Other
Alzheimer's disease -- Population studies show that people who get higher levels of niacin in their diet have a lower risk of Alzheimer's disease. No studies have evaluated niacin supplements, however.
Skin conditions -- Researchers are studying topical forms of niacin as treatments for acne, aging, and prevention of skin cancer, although it's too early to know whether it is effective.
* information source: http://www.umm.edu/altmed/articles/vitamin-b3-000335.htm
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