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KELOWNA, BC - Lexaria Bioscience Corp. (NASDAQ:LEXX), a leader in drug delivery platforms with a market capitalization of $31.77 million, has announced significant advancements in its DehydraTECH technology, especially within the GLP-1 sector, a major area of focus for the company. In a recent press release, CEO Richard Christopher highlighted a series of successful studies conducted in 2024 that demonstrated the potential of Lexaria’s technology to improve oral drug delivery.
Key among the 2024 highlights, Lexaria raised $13.4 million net through equity and warrant exercises to fund its operations and further its development plans for 2025. According to InvestingPro data, the company holds more cash than debt on its balance sheet, though it’s currently burning through cash at a significant rate. The company also initiated a Phase 1b registrational study in Australia and received FDA clearance for a Phase 1b hypertension study utilizing DehydraTECH-CBD.
The studies conducted last year showcased DehydraTECH’s ability to enhance the absorption of GLP-1 drugs, which are used in the treatment of diabetes and obesity. Notably, Human Pilot Study #2 (GLP-1-H24-2) indicated an 18.8% higher semaglutide level in the bloodstream compared to the control arm, and a 60% reduction in adverse events when using DehydraTECH-processed semaglutide versus the commercial Rybelsus® tablet alone.
Animal studies also yielded promising results, with DehydraTECH formulations outperforming the control arm in weight control and blood sugar reduction. Furthermore, initial results from Human Pilot Study #3 (GLP-1-H24-3) showed a 47% reduction in adverse events and comparable blood glucose reduction when comparing oral DehydraTECH-tirzepatide capsules to injectable tirzepatide.
Looking ahead to 2025, Lexaria plans to continue its focus on GLP-1 research, with further studies planned, including completing Human Pilot Study #5 (GLP-1-H25-5) focused on oral DehydraTECH-liraglutide and running additional animal studies. The company also entered a Material Transfer Agreement with an unnamed pharmaceutical company to evaluate DehydraTECH in a pre-clinical setting.
Lexaria’s strategic update underscores its commitment to improving the effectiveness and reducing the side effects of orally delivered drugs, with the aim of attracting pharmaceutical partners. The company’s share price rose by 68% in 2024, outperforming the S&P Biotech Select Industry Index, which increased by approximately 1%.
This report is based on a press release statement from Lexaria Bioscience Corp. and contains no endorsement of the company’s claims. The forward-looking statements in the press release are based on current expectations and involve risks and uncertainties.
In other recent news, Lexaria Bioscience has seen a flurry of activity. H.C. Wainwright has adjusted its price target for the company to $7, down from $10, while maintaining a Buy rating. This decision came in the wake of Lexaria Bioscience’s announcement of positive partial final results from a human pilot study. Despite the company’s strong revenue growth of 77.6% over the last twelve months, it remains unprofitable with a negative EBITDA of $7.17 million.
Lexaria Bioscience also disclosed fiscal year 2024 financial results, reporting revenues of $0.5 million and a net loss of $5.8 million. However, the company strengthened its cash position to approximately $11.2 million by issuing 1.6 million shares of common stock in a registered direct offering.
In terms of corporate governance, shareholders approved board and auditor selections, with Malone Bailey LLP appointed as the company’s auditors. Executive compensation was also approved. Significant changes in the company’s executive management were announced, as well as the establishment of a Scientific Advisory Board.
Lexaria Bioscience has also been making strides in its research and development efforts, with positive results from the WEIGHT-A24-1 diabetes animal study and the initiation of a study to track the biodistribution of DehydraTECH-enabled semaglutide molecules in rodents. These are recent developments in Lexaria Bioscience’s operations.
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