On Monday, H.C. Wainwright reaffirmed a Buy rating with a $10.00 price target on shares of Lexaria Bioscience (NASDAQ:LEXX), representing significant upside from the current price of $2.23. According to InvestingPro data, analyst targets for LEXX range from $8 to $12, with the stock showing impressive momentum through a 72.87% return over the past year.
The firm’s analyst highlighted the recent commencement of a Phase 1b study by Lexaria Bioscience, which began patient dosing on December 19. The study is being conducted in Australia and is designed to assess the efficacy and safety of the company’s DehydraTECH technology in reducing side effects and improving the efficacy of existing GLP-1 drugs used to treat patients who are overweight, obese, or have pre- or type 2 diabetes.
The clinical trial, known as the GLP-1-H24-4 study, includes four DehydraTECH formulation arms and one Rybelsus comparator control arm. The DehydraTECH formulations being tested are CBD capsules, semaglutide capsules, a combination of semaglutide with CBD capsules, and an optional tirzepatide capsules arm, which will be added based on positive outcomes from an ongoing separate study. Rybelsus tablets serve as the control arm for the trial. Each of the first four arms aims to enroll 20 patients across seven clinical sites.
Quality control release testing for the clinical test articles involved in the study has been successfully completed. This step is crucial to ensure the safety and reliability of the formulations being administered to participants.
The significance of this study lies in its potential to demonstrate DehydraTECH’s ability to enhance the performance of GLP-1 drugs. Lexaria Bioscience’s management has indicated that once the study is completed, it is expected to be recognized as a Phase 1b study by the U.S. Food and Drug Administration (FDA). With a market capitalization of $38.92 million and a strong current ratio of 7.18, the company maintains robust liquidity to support its research initiatives.
H.C. Wainwright’s continued support for Lexaria Bioscience is based on these developments, which could signal important progress in the treatment of conditions related to diabetes and obesity. The firm’s reiterated Buy rating and price target reflect confidence in the company’s ongoing research and potential market impact. InvestingPro analysis reveals the company maintains a FAIR overall financial health score, with particularly strong metrics in growth potential. Investors should note that the company’s next earnings report is scheduled for January 15, 2025, which could provide additional insights into its development progress.
In other recent news, Lexaria Bioscience Corp. reported fiscal year 2024 financial results, revealing revenues of $0.5 million and a net loss of $5.8 million. The company also closed a registered direct offering, issuing 1.6 million shares of common stock, which strengthened its pro forma cash position to approximately $11.2 million. H.C. Wainwright analysts have consistently maintained a Buy rating for the company.
Additionally, Lexaria Bioscience formed a Scientific Advisory Board (SAB) to guide its development strategies in the pharmaceutical industry. The SAB, led by Lexaria’s President and Chief Scientific Officer John Docherty, comprises of four experts with diverse backgrounds in pharmacology, regulatory strategy, and cardiovascular research.
In the research and development sector, the company reported positive results from its WEIGHT-A24-1 diabetes animal study and initiated a new study tracking the biodistribution of DehydraTECH-enabled semaglutide molecules in rodents. Furthermore, Lexaria Bioscience entered a Material Transfer Agreement with PharmaCO for pre-clinical trials of DehydraTECH. These are the recent developments in the company’s operations.
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