$LXRP - The Lexaria Biosciences – Altria Venture
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Posted On: 09/20/2020 3:11:19 PM
$LXRP - The Lexaria Biosciences – Altria Ventures deal
Altria Ventures will provide initial funding of $1 million for the research and development program with an option for an additional $11 million, which alludes to the potential for a longer-term relationship. Altria will also receive a license for Lexaria's proprietary DehydraTECH platform on oral nicotine exclusively in the U.S. and non-exclusively internationally. Lexaria will receive royalties on revenue generated from any Altria oral nicotine sales. This latter clause is especially compelling as the tobacco industry is estimated worth $750 billion.
More directly, the smoke cessation industry is estimated to be valued at $21.8 billion by 2024. Of the 44.5 million smokers in the U.S., 70% claimed they considered quitting and 44% attempted to quit in the past year. Additionally, Altria has reserved the right to initially appoint one of the seven directors on Lexaria Nicotine's board, with the right to appoint as many as three directors through additional phased investments.
"Lexaria Bioscience is proud that, after careful selection, Altria has chosen to fund research into DehydraTECH™ technology and potentially commercialize this technology for oral nicotine," said Chris Bunka, CEO of Lexaria Bioscience. "This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D Program and regulatory compliance process. We believe Altria is the best corporate partner we could work with to truly make a difference in the lives of millions of consumers."
"Lexaria Bioscience has repeatedly demonstrated the powerful effects of its patented DehydraTECH™ technology for enhancing the palatability and speed of onset of orally-consumed bioactive substances such as nicotine," added John Docherty, President of Lexaria Bioscience. "Laboratory research to date on oral nicotine formulations has been quite encouraging. We are very excited to advance the clinical phases of our comprehensive R&D Program together with Altria with a view to full commercial product development."
The DehydraTECH platform has produced disruptive results for bio-absorption rates, bioavailability and the speed of metabolism, and has been proven to successfully deliver ingredients through the blood-brain barrier.
Regarding nicotine, at the end of August, Lexaria released additional results from a second test on its DehydraTECH platform from an in vivo study demonstrating 90.2% more nicotine in the bloodstream at the 10-minute mark than the control. In addition, the study showed that Lexaria's formulation was four times faster at reaching peak levels in brain tissue and delivered 195% more nicotine across the blood-brain barrier.
The August second-generation study, which was conducted by a neutral, third-party laboratory, was consistent with previous test results in April 2018. Those April results signaled a breakthrough for the company, prompting Lexaria to file a patent application for "Enhancement of Delivery of Lipophilic Active Agents Across the Blood-Brain Barrier and Methods for Treating Central Nervous System Disorders," adding to an already diverse patent portfolio spanning more than 40 countries with over 53 patents filed and 10 accepted.
Essentially, DehydraTECH increases the body’s absorption of nicotine in an edible format, providing a healthier way to increase absorption than smoking. Thus, due to the effectivity of Lexaria's delivery technology, the two companies see a path forward where smaller quantities of nicotine might be substituted for larger, less effectively-delivered doses, ultimately leading to safer choices and healthier lifestyles and complying with FDA-stated goals of reduced levels of nicotine.
https://www.equities.com/news/what-lexaria-bi...bis-market
Altria Ventures will provide initial funding of $1 million for the research and development program with an option for an additional $11 million, which alludes to the potential for a longer-term relationship. Altria will also receive a license for Lexaria's proprietary DehydraTECH platform on oral nicotine exclusively in the U.S. and non-exclusively internationally. Lexaria will receive royalties on revenue generated from any Altria oral nicotine sales. This latter clause is especially compelling as the tobacco industry is estimated worth $750 billion.
More directly, the smoke cessation industry is estimated to be valued at $21.8 billion by 2024. Of the 44.5 million smokers in the U.S., 70% claimed they considered quitting and 44% attempted to quit in the past year. Additionally, Altria has reserved the right to initially appoint one of the seven directors on Lexaria Nicotine's board, with the right to appoint as many as three directors through additional phased investments.
"Lexaria Bioscience is proud that, after careful selection, Altria has chosen to fund research into DehydraTECH™ technology and potentially commercialize this technology for oral nicotine," said Chris Bunka, CEO of Lexaria Bioscience. "This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D Program and regulatory compliance process. We believe Altria is the best corporate partner we could work with to truly make a difference in the lives of millions of consumers."
"Lexaria Bioscience has repeatedly demonstrated the powerful effects of its patented DehydraTECH™ technology for enhancing the palatability and speed of onset of orally-consumed bioactive substances such as nicotine," added John Docherty, President of Lexaria Bioscience. "Laboratory research to date on oral nicotine formulations has been quite encouraging. We are very excited to advance the clinical phases of our comprehensive R&D Program together with Altria with a view to full commercial product development."
The DehydraTECH platform has produced disruptive results for bio-absorption rates, bioavailability and the speed of metabolism, and has been proven to successfully deliver ingredients through the blood-brain barrier.
Regarding nicotine, at the end of August, Lexaria released additional results from a second test on its DehydraTECH platform from an in vivo study demonstrating 90.2% more nicotine in the bloodstream at the 10-minute mark than the control. In addition, the study showed that Lexaria's formulation was four times faster at reaching peak levels in brain tissue and delivered 195% more nicotine across the blood-brain barrier.
The August second-generation study, which was conducted by a neutral, third-party laboratory, was consistent with previous test results in April 2018. Those April results signaled a breakthrough for the company, prompting Lexaria to file a patent application for "Enhancement of Delivery of Lipophilic Active Agents Across the Blood-Brain Barrier and Methods for Treating Central Nervous System Disorders," adding to an already diverse patent portfolio spanning more than 40 countries with over 53 patents filed and 10 accepted.
Essentially, DehydraTECH increases the body’s absorption of nicotine in an edible format, providing a healthier way to increase absorption than smoking. Thus, due to the effectivity of Lexaria's delivery technology, the two companies see a path forward where smaller quantities of nicotine might be substituted for larger, less effectively-delivered doses, ultimately leading to safer choices and healthier lifestyles and complying with FDA-stated goals of reduced levels of nicotine.
https://www.equities.com/news/what-lexaria-bi...bis-market
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