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Lexaria Bioscience Corp. (NASDAQ: LEXX) Leveraging Growing Commercial Opportunities

  • Lexaria is a biotechnology company focused on licensing its proprietary DehydraTECH(TM) technology
  • The DehydraTECH technology has been proven to increase the bioavailability, speed of onset and brain absorption of APIs, and improve customer experiences by masking unwanted tastes
  • Lexaria has 25 patents granted worldwide and is pursuing numerous other pending patent applications
  • The company operates several subsidiary companies to focus on different commercial opportunities 

Ever since acquiring its first intellectual property (“IP”) that subsequently formed the basis of its first two patent application filings in 2014, biotechnology company Lexaria Bioscience (NASDAQ: LEXX) has grown the number of patents granted and patent applications exponentially, with 25 patents granted worldwide as of April 2022. The latest patent, the 10th granted in the United States, represents the first-ever patent for the use of DehydraTECH(TM) drug delivery technology in the enhanced delivery of antiviral drugs. Described by CEO Chris Bunka as “another validation of the versatility of our DehydraTECH drug technology,” the award of the IP protection marks a key step toward the ultimate monetization of DehydraTECH, according to an April 21 news release (https://nnw.fm/F5dID).

This monetization, Lexaria’s annual report (Form 10-K filing) for the fiscal year ended August 2021 notes (https://nnw.fm/umHPU), will be realized through the company’s focus on R&D and subsequent strategic partnerships with licensees. 

“Lexaria’s formulation and process-oriented operations are primarily conducted in its own laboratory and validated through third-party testing in preparation for partnering with industry leaders for adoption into their consumer products and/or drugs. Other than for R&D purposes, Lexaria does not produce, manufacture, market, or distribute drugs,” the filing reads. “Our business plan is currently focused on the development of strategic partnerships with licensees for our patented DehydraTECH technology in exchange for upfront and/or staged licensing fees and/or royalty payments over time.”

This focus has been influenced by numerous learnings through the years, some of which have involved experimentation with consumer product development that included brewed tea, coffee, protein bars, candies, drink mixes and several other product types. Discoveries made through innovative formulation work drives Lexaria’s technology and licensing strategies. 

According to the company’s most recent quarterly report for the three months ended February 28, 2022 (https://nnw.fm/Pj6kQ), Lexaria operates wholly owned subsidiaries focused on commercial opportunities which include –Lexaria Hemp Corp. focused on primarily US-based business-to-business (“B2B”) CBD opportunities;  Lexaria Pharmaceutical Corp., focused on registered drug development and advancement;  – and Lexaria Nicotine LLC., owned 16.67% by giant tobacco company Altria, which is focused on oral nicotine development as an alternative to combusted or vaped nicotine (https://nnw.fm/wUtNT). 

Lexaria Pharmaceutical Corp. is investigating the potential for new registered drug products for hypertension, anti-viral treatments, epilepsy, some pharmaceutical applications of nicotine and other drug classes. This is where the largest long-term value creators for the Company are developed. Lexaria CanPharm Corp. operates a state-of-the-art Health Canada-licensed laboratory capable of developing novel cannabinoid and many other types of formulations for potential commercialization. Much of Lexaria’s most secret development work is carried out in that laboratory by trusted scientists employed by the Company. 

These subsidiaries sublicense DehydraTECH in their respective business sectors for the delivery of fat-soluble molecules and drugs to other companies which is Lexaria’s central plan to generate highly profitable revenue streams over long periods. Additionally, Lexaria will continue pursuing its pending patent applications to further bolster shareholder value. In addition, the company “will continue to seek beneficial acquisitions of intellectual property” if and when it believes it is advisable to do so.

Lexaria is a drug delivery company focused on developing and licensing its proprietary DehydraTECH technology for improved delivery and rapidity of bioactive compounds in orally delivered and topical products, as well as enhanced customer experiences by masking unwanted tastes. The DehydraTECH technology has been proven to enhance the bioavailability of a broad range of fat-soluble active pharmaceutical ingredients (“APIs”), thereby improving the way they enter the bloodstream, lowering dosing, and facilitating healthier oral ingestion methods. 

For more information, visit the company’s website at www.LexariaBioscience.com.

NOTE TO INVESTORS: The latest news and updates relating to LEXX are available in the company’s newsroom at https://nnw.fm/LEXX

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