LEXX Stock Increased 28.07%: Why It Happened

By Amit Chowdhry ● July 22, 2021
  • The stock price of Lexaria Bioscience Corp (NASDAQ: LEXX) increased 28.07% yesterday. This is why it happened.

The stock price of Lexaria Bioscience Corp (NASDAQ: LEXX) increased 28.07% yesterday. Investors are responding positively to Lexaria Bioscience announcing that its tolerability and pharmacokinetic study VIRAL-A20-3 has been completed with positive results.

This study had demonstrated that DehydraTECH enabled colchicine — the latest of several drugs Lexaria has successfully tested with known SARS-CoV-2 antiviral properties — benefited from the company’s proprietary formulation and processing, resulting in increased delivery:

Colchicine is known as an approved therapeutic with anti-inflammatory effects that is principally used for treating gout and conditions such as cardiac inflammation (i.e., pericarditis). And it also has potent effects in mitigating the cytokine storm associated with SARS-CoV-2/COVID-19. Colchicine is occasionally recommended and used to treat emergent pericarditis in children in cases where this form of cardiac inflammation develops following administration of mRNA COVID-19 vaccines.

Similar to other antiviral agents that Lexaria processed with DehydraTECH (e.g., darunavir, efavirenz, remdesivir’s nucleoside analogue GS-441524 and ebastine), oral colchicine in its available forms today exhibits diminished bioavailability in humans — which Lexaria believes it can improve upon for better safety and efficacy outcomes. Currently available oral colchicine demonstrates bioavailability of around 45%.

Colchicine is also known for having a narrow therapeutic index, meaning the distinction between toxic and non-toxic doses is marginal and there could be significant benefits in allowing its dosing to be reduced while maintaining therapeutic delivery levels. Lexaria is hoping to improve the bioavailability of colchicine to a sufficient level which could potentially allow for lower overall dosing requirements.

The study VIRAL-A20-3 was performed using Sprague-Dawley rats, with 20 rats dosed via oral gavage using either DehydraTECH or control colchicine formulations (i.e. 10 rats per test article). And the study evaluated peak concentration (Maximum Concentration or Cmax) and total drug delivery into the rodent bloodstream (Area Under the Curve or AUClast). This study was conducted by an independent animal testing laboratory located in the United States.

The study also examined absorption with 2 other antiviral drugs previously untested by Lexaria. And the bloodstream delivery findings were unremarkable with these two drugs, which Lexaria believes was correlated to analytical methodology limitations related to discerning blood levels for the 2 drugs in question. And further work would be required should Lexaria decide to pursue additional testing with these two drugs. But Lexaria will likely focus on DehydraTECH-processed colchicine and other antiviral drugs it has tested given the superior results already demonstrated.

Lexaria is going to summarize and provide guidance on the 2021 antiviral program to date and next steps it is planning soon. The company is not making any express or implied claims that its products have the ability to eliminate, cure or contain the COVID-19 pandemic (or SARS-CoV-2 or novel Coronavirus) or any other virally induced diseases at this time.

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