Last month, we highlighted Lexaria Bioscience Corp. (Nasdaq: LEXX) as a biotech company that was trading at a discount and wanted to issue an update after it made several important announcements.
Since our last update, the stock has rallied well off its lows and we still believe that Lexaria has a favorable risk-reward profile. At current levels, we believe the stock has considerable upside potential and minimal downside risk. Due to the recent announcements, we are of the opinion that Lexaria has several major potential catalysts for growth and want our readers to be aware of the opportunity.
Earlier this month, Lexaria issued a report that covered additional findings from its diabetes animal study DIAB-A22-1, and also provided updates on two other applied R&D programs. Some important data points from the studies include:
- Lexaria found that blood glucose levels were statistically significantly lowered by 19.9 ± 7% in the obese diabetic-conditioned animals that were treated with the DehydraTECH-CBD 30 mg/Kg dose when compared to the obese vehicle control animals
- Creatinine levels improved with a 16.8% +/-7% increase in the obese animals that were receiving DehydraTECH-CBD
- Prior to these results, the company completed initial testing with DehydraTECH-CBD in its diabetes animal model study that produced three positive outcomes including weight loss in obese diabetic-conditioned animals, together with improved triglyceride and cholesterol levels.
We believe that DehydraTECH-CBD’s ability to reduce blood sugar levels in animals is very encouraging and warrants additional investigation. We are of the opinion that the market is discounting the potential value that is associated with the findings and believe the stock has significant upside potential as a result of this.
Lexaria is a biotech company that has been advancing pre-clinical and clinical trials and has a very strong IP portfolio. The biotech company operates a licensed in-house research laboratory and has more than 30 patents granted (it has roughly 50 patents pending worldwide).
For biotech companies, valuations tend to surge higher when positive clinical trial data is reported. According to Bay Bridge Bio, typical company valuations at the start of Phase I are USD $88 million and USD $248 million at the start of Phase II. Based on these valuations, we believe Lexaria has substantial upside potential.
At current levels, we believe that Lexaria has a compelling valuation and a favorable risk-reward profile. We are of the opinion that there is a major valuation disconnect between Lexaria and the stock market and expect this to change if positive clinical trial data is reported from the studies it is conducting.
If you are interested in learning more about Lexaria Bioscience, please send an email to support@onthebids.com with the subject “Lexaria Bioscience” to be added to our distribution list.
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Pursuant to an agreement between Spotlight Media and Lexaria Bioscience we have been hired for a period of 30 days beginning June 10, 2023 and ending July 10, 2023 to publicly disseminate information about Lexaria Bioscience including on the Website and other media including Facebook and Twitter. We are being paid $1,000 per month by Lexaria Bioscience and were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of Lexaria Bioscience that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of Lexaria Bioscience in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws
