LEXX: GLP-1 Agonist Program Updates

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By John Vandermosten, CFA

NASDAQ:LEXX

READ THE FULL LEXX RESEARCH REPORT

Lexaria Bioscience Corporation (NASDAQ:LEXX) reported fiscal third quarter 2024 results along with program updates, progress in its GLP-1 trials, a capital raise and a new role for the CFO. The investigational new drug (IND) application for hypertension was cleared in March and ethics board approval was given to start the second GLP-1 agonist human pilot study. Additionally, several new patents were granted bringing the total to 43. Lexaria’s primary focus this year is to demonstrate that DehydraTECH (DHT) can be an effective delivery system serving the burgeoning GLP-1 agonist space. Oral options for GLP-1s are limited and initial data for DHT-GLP-1s promising leading to the development of a series of studies that seek to find the best approach for a more convenient delivery method. So far, we have seen preliminary data for the animal studies which look at DehydraTECH (DHT) formulated cannabidiol (CBD), liraglutide and semaglutide. Since our latest report in April, we have updated all of the GLP-1 agonist study detail sections to reflect their latest status.

Third Quarter 2024 Results

Lexaria filed its 3Q:24 Form 10-Q on July 12th, 2024. The company reported 3Q:24 revenues of $84,000, and total operating expense of $1.8 million resulting in net loss of ($1.8) million or ($0.13) per diluted common share.

For the fiscal quarter ending May 31st, 2024 and versus the comparable prior year period:1

➢ Revenue totaled $84,000, down 10% from $93,000 as increases in licensing revenues were more than offset by the absence of Product and Other revenues which together totaled $69,000 in the prior year. The rise in licensing revenues was due to an increase in minimum fees earned from the licensing agreement with Premier;

➢ Research and development expenses totaled $573,000, down 65% from $1,641,000 as a result of completing the manufacturing of DHT CBD drug for the company’s clinical studies, and the completion of other studies for nicotine replacement, diabetes and seizures. Existing spending is tied to the DHT investigational research programs underway in GLP-1 agonists and CBD;

➢ General and administrative expenses totaled $1,254,000 up 52% from $823,000 due primarily to an increase in legal and professional fees due to patent filings and other miscellaneous legal advisory work. This was partially offset by lower consulting fees, departure of two employees and lower advertising and promotion;

➢ Other loss of ($41,000) represented unrealized loss on marketable securities related to a rise in stock price during 3Q:24;

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