Products, Partnerships and Patents: Lexaria Biosciences Becoming a Force in Legal Cannabis Industry

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Friday, April 7, 2017

The legal marijuana space is an interesting proposition for early-stage investors, as there’s no denying the relaxation of marijuana laws across the U.S. and Canada and forecasts for incredible growth that accompanies legalization of medical and/or recreational marijuana.  Some market participants don’t want to gamble on growers, choosing rather to focus on tech companies, like Lexaria Bioscience Corp. (OTCQB:LXRP) (CSE:LXX), due to a perceived better risk profile and less congested market segment than the land grab of wannabe growers. 

A bioscience technology company, Lexaria is aiming to disrupt a U.S. market forecast to reach $50 billion in the next decade and a Canadian market expected to reach $4.5 billion by 2021 with its proprietary technology for improving delivery of bioactive compounds.  The technology has many potential applications, including the cannabis sector, where Lexaria’s lipophilic enhancement technology has been shown to improve taste (eliminates need for sugar-filled edibles) and enhance bioavailability of orally ingested cannabis components called cannabinoids.

The company uses long-chain fatty acids (sunflower oil, for example) to mask the unpleasant taste of active ingredients and allow them to bypass the liver for increased uptake into the body.  Simply, better bioavailability means improved benefits of “the good stuff” in a product, or benefits equal to legacy products in smaller doses.

Although some contest that evidence is purely anecdotal, advocates of cannabinoids argue that there are undeniable, medically proven benefits of cannabinoids.  Whether they include tetrahydrocannabinol (THC), the cannabinoid responsible for the euphoric “high” associated with marijuana, or not, cannabinoids are widely heralded by a growing choir of pundits for a litany of therapeutic benefits, including pain and stress relief, anti-inflammatory properties, seizure and nausea control, hunger stimulant, antibiotic/antifungal properties and much more.

It is the health benefits that underscore legalization of marijuana for medicinal purposes in 28 states, Washington, D.C., and across Canada.

Further, following voting in November, eight U.S. states have legalized recreational marijuana now and expectations are that Canada’s Prime Minister Justin Trudeau will make good on his campaign promise to legalize recreational use of cannabis nationwide.

The shifting regulatory climate in North America creates a large opportunity for Kelowna, British Columbia-based Lexaria.  The company's technology is patent-protected for cannabidiol (CBD) and all other non-psychoactive cannabinoids, and patent-pending for THC, other psychoactive cannabinoids, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules.

Lexaria backs its technology with laboratory and human research proving the benefits and superior deliverability of active ingredients.  In fact, test subjects in a human focus study evaluating a THC application ranked Lexaria formulation as best tasting, most palatable and delivering the best overall experience.

The company also has the support of Canada’s National Research Council, penning a collaborative research agreement in February to investigate opportunities associated with bioavailability enhancement of lipophilic active ingredient compositions.

Lexaria already has several products on the market, including energy bars, teas and hemp oil products.  Less than two weeks ago, the latest product, the TurboCBD™ brand of technologically enhanced, high absorption full spectrum hemp oil capsules was unveiled.  The capsules formulation includes ginseng and ginkgo biloba for supporting enhanced focus and memory and reduced stress and fatigue.

With marketed products, R&D with Canada’s premier research and technology organization and a patented technology, Lexaria is assuming a leading role covering a wide swath of the legal marijuana industry.  The company is in the unique position with diversified market opportunities to generate revenue, albeit through licensing the technology, developing or manufacturing products for others or broadening their own in-house product line.

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