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KELOWNA, BC - Lexaria Bioscience Corp. (NASDAQ:LEXX), a small-cap biotechnology company with a market capitalization of approximately $19 million, reports that its DehydraTECH technology has demonstrated the ability to reduce side effects in the three leading GLP-1 weight loss and diabetes drugs currently on the market: semaglutide, tirzepatide, and liraglutide. InvestingPro data shows the company has achieved impressive revenue growth of nearly 50% over the last twelve months.
According to the company, the rapidly growing GLP-1 pharmaceutical sector faces significant challenges with patient retention due to adverse effects. Industry data suggests between 47% and 64% of GLP-1 users with type 2 diabetes discontinue their medication within one to two years, primarily due to gastrointestinal issues.
The GLP-1 market generated $53.5 billion in 2024 and is projected to reach $70.1 billion in 2025, representing 31% year-over-year growth. Current forecasts estimate the sector could exceed $156 billion annually by 2030. While Lexaria’s current revenue stands at $0.62 million, analysts following the stock maintain price targets ranging from $5 to $8, significantly above its current trading price of $0.98. Get more detailed analysis and 8 additional key insights with InvestingPro.
In clinical testing, Lexaria’s DehydraTECH technology has shown potential to reduce gastrointestinal side effects when used with GLP-1 medications. The company cites data from four Novo Nordisk studies across 4,218 participants showing 75.7% of people experienced gastrointestinal adverse events when taking semaglutide and CagriSema.
Lexaria is pursuing a strategy to partner with pharmaceutical companies interested in incorporating its technology into existing drug products. The company previously announced a material transfer agreement with an unnamed pharmaceutical company in September 2024 and reports ongoing collaboration on evaluating DehydraTECH compositions. According to InvestingPro metrics, Lexaria maintains a healthy current ratio of 3.9 and an impressive gross profit margin of 99.56%, though its overall financial health score remains categorized as weak.
Lexaria currently holds 50 granted patents related to its drug delivery platform, with additional patents pending worldwide, according to the press release statement.
In other recent news, Lexaria Bioscience has reported several significant developments. The company secured $2 million through a direct offering with an institutional investor, facilitated by H.C. Wainwright & Co. This capital will be directed towards working capital and general corporate purposes. In addition, Lexaria expanded its patent portfolio to 50, with new international patents, including one in Australia for treating epilepsy, which will expire in 2044. Meanwhile, H.C. Wainwright lowered its price target for Lexaria to $5.00 from $7.00 but maintained a Buy rating on the stock. This adjustment follows Lexaria’s positive partial results from a human pilot study comparing an oral version of DehydraTECH-processed liraglutide to the conventional injected Saxenda. Lexaria is also advancing its drug delivery technology through ongoing collaboration with PharmaCO, completing initial pre-clinical studies under a Material Transfer Agreement. PharmaCO is interested in further data from Lexaria’s independent human study, GLP-1-H24-4, which is expected to be released starting in Q3 2025. These recent developments highlight Lexaria’s ongoing efforts in research and strategic partnerships.
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