KELOWNA, BC - Lexaria Bioscience Corp. (NASDAQ:LEXX), a pioneer in drug delivery platforms, has shared interim results from its ongoing diabetes study, WEIGHT-A24-1. The study examines how the company's patented DehydraTECH technology affects the delivery and effectiveness of diabetes drugs. Initial findings from the first four weeks of dosing indicate a reduction in body weight gain and, in some cases, weight loss in animal subjects.
The study utilizes diabetic, pre-conditioned Zucker rats, with the first eight arms, known as Cohort 1, having completed 28 days of dosing. Notably, formulations DehydraTECH-CBD3 and DehydraTECH-liraglutide showed the most significant weight loss, with reductions of -1.50% and -1.58%, respectively. These outcomes suggest that DehydraTECH processing, applied for the first time to the GLP-1 drug liraglutide, may enhance its performance.
Liraglutide, owned by Novo Nordisk (NYSE:NVO) and sold under the brand names Victoza and Saxenda, generated $1.6 billion in revenue in 2022. Currently, liraglutide is only available as an injectable, but the DehydraTECH-enabled oral form tested in the study could potentially lead to new oral delivery options as the related patents expire.
The study also marks the first instance of pure semaglutide being tested with DehydraTECH processing without SNAC technology, which is used in the oral tablet Rybelsus. The results so far indicate a similar performance in body weight gain attenuation to the best-performing DehydraTECH-processed reformulated Rybelsus composition that includes SNAC.
Following these preliminary outcomes, dosing in the final four study arms of Cohort 2 has commenced, which includes a positive control arm, a placebo arm, and combinations of DehydraTECH-semaglutide and DehydraTECH-CBD with DehydraTECH-liraglutide.
The study is expected to conclude in mid-October, with additional data on blood glucose and pharmacokinetics to be released in due course. Brain absorption data, which could indicate enhanced delivery across the blood-brain barrier, will be available at the study's end.
Lexaria's DehydraTECH technology is designed to improve the way active pharmaceutical ingredients enter the bloodstream orally. While these interim results are promising, they are not necessarily indicative of statistical significance due to the exploratory nature of the study and the small animal population used.
This report is based on a press release statement and does not include any claims of efficacy or endorsement of the technology.
In other recent news, Lexaria Bioscience is taking significant strides in expanding its operations and advancing its research initiatives. The company has announced a series of strategic moves, including expanding its management team and preparing for increased research and development activities. To bolster its strategic financial planning, the company has appointed Nelson Cabatuan as the consulting Chief Strategic Financial Advisor.
Lexaria Bioscience is also in the early stages of conceptualizing additional research projects focused on glucagon-like peptide-1 (GLP-1) molecules, which would expand beyond the company's current research scope. The company is also evaluating the next steps for its Phase 1b hypertension study, which has already been cleared by the FDA.
In terms of intellectual property, Lexaria has expanded its portfolio with the acquisition of two significant patents pertaining to the treatment of hypertension and epilepsy. The company has also successfully raised approximately $4.7 million from the exercise of warrants by an accredited investor, which is expected to extend its operational runway into 2025.
Analysts from H.C. Wainwright initiated coverage on Lexaria Bioscience, giving it a Buy rating based on the potential of Lexaria's DehydraTECH technology to significantly impact obesity and diabetes treatment.
The company has made advancements in its drug delivery platform studies, with successful completion of the second dosing phase of its human pilot study, GLP-1-H24-2. This study examines the effectiveness of oral delivery of the diabetes and weight loss drug semaglutide using Lexaria's patented DehydraTECH technology.
InvestingPro Insights
As Lexaria Bioscience Corp. (NASDAQ:LEXX) continues to demonstrate potential in their innovative drug delivery platforms, the financial landscape of the company offers a mixed picture. According to InvestingPro data, Lexaria holds a market capitalization of $45.85 million, reflecting the market's valuation of the company's potential.
Despite the company's promising technology, analysts are not expecting Lexaria to be profitable this year, with a negative P/E ratio of -6.23 indicating that the company has yet to turn its innovative efforts into bottom-line results.
Nonetheless, there are bright spots in the financial data that suggest a robust foundation for future growth. InvestingPro Tips highlight that Lexaria has more cash than debt on its balance sheet, which is a positive signal for investors looking for a financially stable company.
Moreover, analysts anticipate sales growth in the current year, with a significant revenue growth of 34.05% over the last twelve months as of Q3 2024. These metrics, combined with a high gross profit margin of 98.83%, may point towards an efficient cost structure and the potential for scalability.
Investors interested in a deeper dive into Lexaria's financial health and future prospects can find further InvestingPro Tips, with a total of 10 additional tips available on InvestingPro. For those considering an investment in Lexaria, or seeking to understand the financial implications of their latest study results, using the coupon code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering valuable insights to guide investment decisions.
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