On Wednesday, H.C. Wainwright commenced coverage on Lexaria Bioscience (NASDAQ:LEXX), a clinical-stage biotechnology company, with a Buy rating and a price target of $10.00. Lexaria Bioscience specializes in developing fat-soluble active molecules leveraging its proprietary DehydraTECH drug delivery technology.
This technology is designed to enhance the efficacy of drugs by improving how active pharmaceutical ingredients (APIs) are absorbed into the bloodstream. It also aims to reduce the required dosing through oral administration.
The company's leading drug candidates include DehydraTECH-GLP-1 drugs, which utilize FDA-approved GLP-1 receptor agonists for obesity and diabetes treatment.
These drugs, specifically semaglutide and tirzepatide, are currently marketed by Novo Nordisk (NYSE:NVO) and Eli Lily under the brands Wegovy and Zepbound, respectively. Lexaria is evaluating these drugs in conjunction with DehydraTECH in human trials targeting obesity.
H.C. Wainwright's analyst highlighted that Lexaria's DehydraTECH-GLP-1 drugs are considered relatively low risk from a regulatory standpoint, given that the APIs they are based on have already received FDA approval.
Moreover, the booming sales of GLP-1 drugs for obesity, which have reached multi-billion dollar levels, also suggest a reduced commercial risk for Lexaria's drug candidates.
The firm's positive outlook on Lexaria Bioscience is based on the potential of the DehydraTECH technology to make a significant impact in the treatment of obesity and diabetes. With the initiation of coverage and the setting of a 12-month price target of $10 per share, H.C. Wainwright signals confidence in the company's prospects and the commercial viability of its DehydraTECH-GLP-1 drugs.
In other recent news, Lexaria Bioscience Corp. has made significant advancements in its drug delivery platform studies. The company successfully completed the second dosing phase of its human pilot study, GLP-1-H24-2, which examines the effectiveness of oral delivery of the diabetes and weight loss drug semaglutide using Lexaria's patented DehydraTECH technology. The final arm of the study is expected to be completed in early July.
Lexaria also initiated a 12-week animal study named WEIGHT-A24-1, to evaluate the effectiveness of its DehydraTECH technology in enhancing the delivery of GLP-1 drugs and CBD for the treatment of diabetes and weight loss. The study commenced dosing diabetic preconditioned rats with various DehydraTECH-processed compounds to determine the potential benefits in brain absorption, weight loss, and blood sugar control.
Furthermore, the company has expanded its intellectual property portfolio with the acquisition of two significant patents pertaining to the treatment of hypertension and epilepsy. This expansion brings the company's total to 43 granted patents globally.
In financial developments, Lexaria has successfully raised approximately $4.7 million from the exercise of warrants by an accredited investor. This capital is expected to extend the company's operational runway into 2025 and support the execution of their plans for 2024.
Lastly, Lexaria received approval to commence a human pilot study focused on the delivery of GLP-1 drugs using their DehydraTECH technology. The study aims to improve the oral delivery of GLP-1 drugs, which are predominantly administered via injection. These recent developments reflect Lexaria's ongoing commitment to innovation and growth in the pharmaceutical sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.