- The stock price of Lexaria Bioscience Corp (NASDAQ: LEXX) is trading at over 50% today. This is why it happened.
The stock price of Lexaria Bioscience Corp (NASDAQ: LEXX) is trading at over 50% today as it went from a previous close of $4.84 to $7.38 (as of 3:05 PM ET). Investors appear to be responding to a few catalysts.
Cannabis stocks have been rallying this week after 3 Democratic senators led by Majority Leader Chuck Schumer started planning to make reform legislation a priority in Congress with the goal of ending federal prohibition. Sens. Ron Wyden of Oregon and Cory Booker of New Jersey will be introducing legislation in the next few weeks.
“The War on Drugs has been a war on people—particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough,” wrote the senators in a joint statement. “As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the War on Drugs.”
There also seems to be a ripple effect from GW Pharmaceuticals getting acquired by Jazz Pharmaceuticals for $7.2 billion today. This deal was at a huge premium for GW Pharmaceuticals. GW is a biopharmaceutical company that focuses on discovering, developing, and commercializing novel therapeutics from its proprietary cannabinoid product platform.
Lexaria also recently closed oversubscribed financing of US$11 million, which greatly enhanced the company’s ability to conduct applied R&D designed to evidence the effectiveness of its patented DehydraTECHTM drug delivery technology across multiple classes of bioactive substances or drugs.
There are two new studies announced for the first time that HYPER-A21-1 and HYPER-A21-2, each of which has completed their initial design phase and contracts have been entered with the third-party laboratory that will be performing the work. And animal dosing is expected to occur in February/March with results in April/May followed by analysis and reporting when completed.
In each of the studies, up to 4 different formulations of DehydraTECH-processed CBD will be utilized including recent enhancements intended to further optimize the delivery of CBD in the animal test groups and measuring for performance indicators such as rapidity and quantity of delivery to the bloodstream and brain. And some of the formulations represent Generation 2.0 DehydraTECH improvements not yet commercially released. Additional work is expected that will also evaluate impacts upon real-time blood pressure in animals at the doses studied.
In its 2018 human clinical study, Lexaria had evidenced that DehydraTECH-processed CBD lowered human blood pressure whereas generic CBD did not. And since then, Lexaria has received granted patents in the European Union and Australia to use DehydraTECH-processed CBD to treat heart disease. So investigation of DehydraTECH processed CBD as a possible treatment for hypertension will be an ongoing pursuit during 2021.
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