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NEW YORK, NY -- February 09, 2021 -- InvestorsHub NewsWire
-- PCG Digital - Chris Bunka is a happy man. As CEO of Lexaria
Bioscience (LEXX)
since 2006, he’s battled to legitimize cannabinoids as a mainstream
medical solution. This week, his dream is coming true. Jazz
Pharmaceuticals, a major player with $2.3 billion in annual
revenue, has entered the fray.
The deal went down on Wednesday, February 3rd. Jazz
completed an acquisition of GW Pharmaceuticals, developers of
Epidiolex, the first cannabinoid-based medical solution to be
approved in the United States. GW reported $500 million in sales of
the drug last year.
Epidiolex was approved in 2018 for the treatment of
childhood-onset forms of epilepsy. Previous treatments for the
condition had been inconsistent. Use of the drug has since been
expanded to cover a wide range of seizure-related
illnesses.
Portfolio managers for cannabis ETFs immediately weighed in on
the deal. Dan Ahrens at AdvisorShares summed it up best.
“Cannabinoid products are rapidly gaining acceptance in the public
eye,” he said. “The news is a surprise, but the opportunity and
price are not.”
Lexaria Stock Surges Following News Release
The entrance of mainstream pharma into the cannabis market has
already created a ripple effect in the space. Lexaria (LEXX) share
prices rose 32% overnight, giving them a total net gain of 74.4%
over the past five days, with an average daily volume of over 1mm
shares traded.
Chris Bunka is not surprised. “We have an upcoming human
clinical study focused on cannabinoids for hypertension and are
exploring applications for central nervous system disorders,” he
explained. “The hypertension market is ten times larger than GW’s
seizure market. This can be massive for LEXX.”
Lexaria has already received granted patents in the EU and
Australia to use its technology to treat heart disease. The company
effected a reverse
stock split on its common stock in January, concurrent
with an $11m capital raise, earning them a timely listing on
NASDAQ.
LEXX opened at $7.60 on Thursday, up from their NASDAQ entrance
price of $4.05 on January 12th. It was at $4.84 on
February 2nd, so the majority of that growth has come
since the Jazz/GW deal was announced. It’s no surprise that company
execs are smiling this morning.
Advanced Drug Delivery Technology with Lexaria
DehydraTECH
With a current market cap under $50 million, on a comparative
basis Lexaria appears to be undervalued. Their proprietary drug
delivery technology, trademarked as DehydraTECH, is one of the main
reasons why.
This disruptive technology was developed to improve the way that
active pharmaceutical ingredients enter the bloodstream. It can be
applied to drugs and vitamins to increase absorption rates and
deliver more powerful dosages in a smaller time frame.
Lexaria is employing the use of DehydraTECH to develop
cannabinoid medical solutions and safer nicotine consumption
products, but it can also be applied to consumer-packaged goods and
most products that come in capsule, pill, tablet, or topical
application form.
The technology is available to be licensed by manufacturers.
According to Lexaria’s website, there are companies with operations
in over one hundred countries examining DehydraTECH for possible
use to more effectively deliver their products.
Lexaria CBD DehydraTECH Hypertension
Studies
Beginning with an early human clinical study in 2018, Lexaria
has been researching the effects of their patented DehydraTECH oral capsule on hypertension and the
resulting heart disease that inevitably follows that condition. A
confirmatory second human clinical study completed design last Fall
and is expected to begin the dosing phase in upcoming months.
Both studies focused on showing evidence of lowered blood
pressure, higher blood flow to the brain, and faster and more
effective delivery onset of CBD into the bloodstream. The 2018
version utilized a 90mg dosage of DehydraTECH processed CBD which
did lower blood pressure, whereas an equal dose of generic CBD did
not. The 2021 study is a human trial with a 300mg dosage.
“Positive results in the new study are expected to be of
particular interest to the antihypertensive products sector, which
is valued at over $22 billion,” stated CEO Chris Bunka. “According
to the CDC, hypertension affects over one billion people
worldwide.”
The results of the study, should they prove to be positive,
could accelerate the uptrend in Lexaria share prices. According to
Chris Bunka, positive results will “strengthen the company’s value
proposition pursuant to its intention to seek out pharmaceutical
industry partners.”
Lexaria’s Commitment to the Treatment of
Covid-19
Lexaria believes that it is possible to use DehydraTECH
technology to facilitate an oral application of anti-viral drugs
currently being administered by injection. This group includes
medications for HIV, hepatitis, influenza, and
coronavirus.
They’re not referring to vaccines. Forty-eight million people
were infected with Covid-19 during the pandemic of 2020. Many of
them will have long-term health issues resulting from their
exposure, even if symptoms are no longer visibly
apparent.
According to the company’s researchers, “Vaccines help prevent
the transmission of viral diseases. They don’t actually treat
symptoms and are only effective 50% to 80% of the time. Anti-viral
drugs will always be needed to treat people who become
infected.”
This is good news for a world where the fallout from Covid-19 is
still uncertain. It’s great news for investors eyeing Lexaria as a
money-making opportunity in 2021. The antiviral drug market is
currently estimated at $52 billion and expected to top $75 billion
by 2027.
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