Monday, August 14, 2017

Regulation Forcing Drug and Cigarette Companies to Be More Responsible is Great News for Lexaria (LXRP), says CEO

In an interview with Stock Day, CEO Chris Bunka of Lexaria Bioscience Corp. (CSE: LXX) (OTCQB: LXRP) discussed the company’s recent achievements and its plans for the near future. Revenues are climbing, exceeding, so far in 2017, the total for all of 2016, and the potential for further increases is imminent. The company is in negotiation with at least four large pharmaceutical companies to license its technology. The smallest of these could increase revenues by $1 million; the largest could increase revenues by much, much more, according to Bunka. Getting any of these deals signed will boost the bottom line almost as much as they would raise revenues. Lexaria will be employing a lucrative licensing model that is likely to yield 90-100% of revenues as profit. The company expects to have its first major agreement wrapped up by the end of the year.

Apart from attracting the attention of big pharma, Lexaria has been working with the National Research Council (NRC) of Canada, an agency of the Canadian federal government, to explore the effects of its technology. The company has developed technology that allows non-psychoactive cannabinoids, vitamins, non-steroid anti-inflammatory drugs (NSAIDs) and nicotine to be absorbed at much higher rates. Lexaria’s superior delivery system offers the promise of potentially reducing required doses of these substances, since less of them goes to waste. The technology also speeds up delivery. It can deliver payload molecules to the bloodstream in 15-25 minutes, as opposed to 60-90 minutes for current methods, and is already in use in a number of consumer products.

Lexaria recently raised $4 million in capital. The company intends to spend part of the proceeds in setting up an R&D program for nicotine. The initiative comes at an opportune time. In August, the FDA announced “a new comprehensive plan for tobacco and nicotine regulation that will serve as a multi-year roadmap to better protect kids and significantly reduce tobacco-related disease and death” (http://dtn.fm/hlb4O). The agency plans to stimulate public dialogue on lowering nicotine levels in combustible cigarettes to non-addictive levels. This is good news for Lexaria, which is hoping its technology can provide a delivery method for nicotine that is safer than smoking. As its CEO has remarked, “Regulation is great news for Lexaria.”

The interview can be heard at http://dtn.fm/194Mx

For more information, visit the company’s website at www.LexariaEnergy.com

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