- LXRP
stock jumped by 24 percent following the FDA’s announcement
- FDA
recently granted the first-ever, modified-risk orders to eight smokeless
tobacco products
- DehydraTECH
technology enhances oral delivery of nicotine
The recent climb in the stock price of Lexaria
Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) looks to be the harbinger of
a bright future for the innovative global developer of drug-delivery platforms.
After the FDA announced it had authorized the marketing of products through the
modified-risk, tobacco-product (MRTP) pathway, LXRP stock jumped 24 percent, up
to $0.72 from $0.58 on the OTC Markets. The rapid rise in Lexaria stock price
is a sure indication that investors are betting some of those product
categories approved by the FDA could benefit from Lexaria’s drug-delivery
platform. The company’s patented DehydraTECH(TM) technology has been shown to
enhance the oral delivery of nicotine and a wide range of other active
pharmaceutical agents.
The FDA announcement is a victory of vindication for
companies such as Lexaria that are developing smokeless nicotine products and
technology. While smokeless tobacco products are widely sold, in the past they
cannot profess to be healthier than cigarettes to use. However, following the
FDA announcement, some can. On October 22, 2019, the FDA allowed (http://ibn.fm/3hCAN) eight
smokeless-tobacco products to make the claim that their use “instead of
cigarettes puts you at a lower risk of mouth cancer, heart disease, lung
cancer, stroke, emphysema, and chronic bronchitis.”
The FDA approval of the “modified risk” claims was made
after reviewing scientific evidence submitted by the manufacturer of the
products. The approvals, which are product specific and expire after five
years, do not mean the products come with no health risks. Nicotine-based
products are addictive and may, according to some studies, induce the onset of
cardiovascular, respiratory and gastrointestinal disorders.
The patented DehydraTECH drug-delivery platform mitigates a
serious limitation to nicotine ingestion. The human GI system struggles to
process nicotine in the forms in which it is presently offered, one reason why
there are currently no edible, nicotine, manufactured products available,
although some natural foods – eggplant, green pepper, potato, tomato – do
contain nicotine. However, DehydraTECH employs a delivery mechanism that
improves the bioabsorption and bioavailability of many ingestible substances,
as well as their taste and smell, by using lipophilic agents. Application of
the technology extends beyond nicotine to non-psychoactive cannabinoids,
vitamins and non-steroidal anti-inflammatory drugs (NSAIDs).
Lexaria has licensed the DehydraTECH technology to a number
of companies, including one of the world’s largest tobacco corporations, in a
collaboration to pursue the development of reduced-risk, oral-nicotine consumer
products. Lexaria recently provided an update on that partnership. “Most of the
investigation and work within this first phase of the project is either
complete or significantly underway, with one remaining aspect ready to commence
imminently,” the company reported (http://ibn.fm/5HjIX). “To date, results have been positive
and are supportive of successfully completing this first phase. Successful
completion of phase one will be the first step in developing commercially
viable products using Lexaria’s technology.”
As of July 2019, Lexaria had nine corporate licensees, with
whom it had signed 11 licensing agreements to develop products using its
DehydraTECH absorption technology (http://ibn.fm/oyRyn). These are potentially lucrative
six-figure contracts that typically yield 90 percent plus of revenues as
profit. Tobacco continues to be an area of opportunity. Presently, the tobacco
industry generates about 20 times more revenue than the cannabis industry.
For more information, visit the company’s website at www.LexariaBioscience.com
NOTE TO INVESTORS: The latest news and updates
relating to LXRP are available in the company’s newsroom at http://ibn.fm/LXRP
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