Fintech
Winning Formulation; Lexaria Takes Strategic Aim at High Value Hypertension and Antiviral Therapeutics Markets with Robust Drug Delivery Technology
Lexaria, delivering active ingredients to patients, could deliver for investors too
The company that turns CBD into blood pressure control might be poised for a surge
Takeaways
- One critical component to over-the-counter drugs is how efficiently and how quickly (or not) they enter the bloodstream.
- Lexaria’s DehydraTECHTM platform has proven to be an effective method to deliver active ingredients, with human tests demonstrating its ability with CBD as a hypertension treatment and animal tests demonstrating its ability with various antivirals.
- DehydraTECH enabled products are on shelves in more than 7,000 retail outlets in the U.S., and use cases keep expanding.
- The book-to-market ratio suggests a great deal of confidence in management.
New York, New York–(Newsfile Corp. – August 17, 2021) – PCG Digital — Lexaria Bioscience Corp. (NASDAQ: LEXX) has been working on making pills easier to swallow since 2006, and its absorption into shareholder portfolios has been speeding up of late, just like their technology.
DehydraTECH: a cure for other cures
Lexaria’s tentpole technology is DehydraTECH, a simple, cost-effective tandem of formulation and production steps which masks unpleasant taste and odor, avoids much of the impact on the liver, increases the drug’s absorption into the body and, most of all, reduces the time before the patient starts feeling the effect.
The company recently issued partial results from a clinical study evaluating how well DehydraTECH processes CBD for potential application against hypertension. Blood pressure was reduced in both male and female volunteers within the first 10 to 50 minutes of the study, reinforcing pre-existing findings demonstrating superior performance over other CBD controls. The therapy was well-tolerated, with no serious side effects.
“We are very encouraged by these early results in our 2021 hypertension program,” said Lexaria CEO Chris Bunka. “Lexaria’s technology enabled a rapid and sustained drop in blood pressure, especially systolic pressure and particularly in Stage 2 hypertensive volunteers.”
That CBD would be among the first use cases for such a platform as DehydraTECH makes sense. FDA-approved for pediatric seizure purposes since 2018, it has gained a great deal of traction over a short period of time. While its most closely identified delivery vector is hemp cigarettes, these can damage lungs as much as pills can damage livers.
Hypertension represents a new market for CBD. And a potential huge win for Lexaria. It is among the world’s leading health issues and provides a $28 billion annual market for pharmaceuticals. Meanwhile, DehydraTECH has demonstrated the ability to increase bio-absorption for the cannabinoid by a factor of 10.
CBD at CVS?
The company, based in Kelowna – a city of 150,000 in the Canadian province of British Columbia – announced that DehydraTECH is embedded in consumer products that can be found in more than 7,000 stores in the U.S. alone.
“Lexaria’s technology is enabling increased market share and sales growth for our continually growing list of corporate clients,” Bunka said. “We are delighted to help these innovators of today and leaders of tomorrow offer their clients superior performance and experiences.”
While a great many of those clients are specific to CBD, there is a much broader market for DehydraTECH. Chief among those are antivirals which, in response to COVID-19, are having a moment. Still, the same technology can be applied to rendering treatments for AIDS and other infectious diseases more effective. Antihistamines and anti-inflammatory drugs, as well as such therapeutics as remdesivir, have all been shown to be enhanced by DehydraTECH in animal studies.
And yet, as is often the case with small biopharma firms, investors have been slow to recognize Lexaria’s upside as this company just listed on the Nasdaq in January.
Taking its own medicine
LEXX was on an upward trend and trading around $8.50 per share in mid-July, about a dollar away from a 12-month peak. That momentum gave investors the confidence to exercise another $3.8 million in existing warrants and, with the risk of dilution setting in, the stock price retreated to about $5.50. Considering Lexaria’s market cap is still almost $30 million, maybe a one-third drop in share price is a bit too excessive a reaction compared to only a one-tenth expansion in share dilution. And, the company appears to have about $12 million in cash, roughly $2 per share.
The fundamentals have only changed for the better over the past few months. The company operates an in-house research laboratory and holds a robust intellectual property portfolio with 21 patents granted and over 50 patent applications pending around the world. The company is vertically integrated with subsidiaries in the hemp, oral nicotine, and pharmaceutical industries.
It should also be noted that the July stock price surge came on the news of DehydraTECH’s efficacy in connection with a colchicine, a COVID-19 therapy.
Its balance sheet is clean, but that is in large part due to Lexaria’s ability to raise money on financial markets. Earnings are not what one would hope for, and yet the market cap is roughly 10x assets, suggesting high confidence in management. It will be interesting to see where LEXX goes from here. No need to worry about the company’s managers, though; their blood pressure is well-controlled.
Disclaimer
This communication was produced by PCG Digital Holdings, LLC, an affiliate of PCG Advisory Inc., (together “PCG”). PCG is not a registered or licensed broker-dealer nor investment adviser. No information contained in this communication constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation of any security. PCG may be compensated by respective clients for publicizing information relating to its client’s securities. See www.pcgadvisory.com/disclosures.
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As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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