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Investing.com - H.C. Wainwright lowered its price target on Lexaria Bioscience (NASDAQ:LEXX) to $5.00 from $7.00 on Tuesday, while maintaining a Buy rating on the stock. The revision comes as LEXX trades near its 52-week low of $0.82, having declined over 68% in the past year. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.
The adjustment follows Lexaria’s recent report of positive partial results from its human pilot study comparing an oral version of DehydraTECH-processed liraglutide to the conventional injected Saxenda. The study enrolled 10 overweight volunteers who received either daily Saxenda injections at 0.6 mg or oral DehydraTECH-liraglutide at 45 mg for seven days.
Safety and tolerability data showed oral DehydraTECH-liraglutide had 22.7% fewer treatment-related adverse events compared to injected Saxenda. Specifically, the oral formulation demonstrated a 67% reduction in nausea and 31% reduction in gastrointestinal adverse events compared to the injection.
The study found that differences in blood glucose, insulin, and body weight measurements were not statistically significant between the two treatments. Weight loss was experienced by 9 out of 10 participants in each study arm, with slightly higher weight loss in the Saxenda arm.
H.C. Wainwright noted that with liraglutide’s patent expiration, DehydraTECH-liraglutide could advance toward a 505(b)(2) application, and Lexaria is currently seeking a pharmaceutical partner to advance the clinical program. The firm estimates Lexaria’s market value at $128 million, supporting its revised $5 price target. Currently valued at $16.95 million, Lexaria maintains a healthy balance sheet with a current ratio of 4.24 and minimal debt, though the company continues to invest heavily in R&D, with revenue growing nearly 30% year-over-year.
In other recent news, Lexaria Bioscience Corp. has expanded its patent portfolio to a total of 50, with new patents in Australia and Japan for its DehydraTECH technology. These patents focus on treating epilepsy and sublingual nicotine delivery, respectively. Lexaria also completed a direct offering, raising $2 million to support working capital and corporate purposes, with H.C. Wainwright & Co. serving as the exclusive placement agent. Additionally, Lexaria has made progress in its collaboration with PharmaCO, completing initial pre-clinical studies and planning further human clinical studies for its drug delivery technology. The company has also completed enrollment for its Phase 1b study in Australia, focusing on diabetes treatment using DehydraTECH-processed drugs. This study aims to evaluate the safety and efficacy of these formulations compared to existing treatments. Furthermore, Lexaria has initiated a human trial to compare its oral DehydraTECH-liraglutide with the injectable form, Saxenda®, targeting diabetes and weight management. These developments underscore Lexaria’s ongoing efforts to enhance drug delivery and expand its intellectual property portfolio.
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