Lexaria Bioscience Corp. (CSE: LXX) (OTCQB: LXRP) has developed and out-licenses its proprietary technology for improved taste, rapidity and delivery of bioactive compounds, including cannabinoids. Though boasting a wide range of health benefits, cannabinoids are traditionally poorly absorbed by the body's gastrointestinal tract. Lexaria provides a superior administration method by delivering hemp oil ingredients through a patented process within food products, as well as cannabis oil ingredients through locally licensed partners.
As a B2B enterprise, Lexaria is in licensing discussions or has existing agreements with companies in Canada, the largest-market states in the U.S., and internationally. Lexaria also has an R&D partnership with the Canadian government's National Research Council to characterize molecular bond formation theorized to occur with Lexaria's unique technology. Results from this R&D are expected to support accelerating B2B relationships in the cannabis industry, while also expected to support new B2B business relationships in the fields of vitamins, NSAIDs and nicotine delivery.
A critical component of Lexaria's business model is a strong IP portfolio that utilizes the most commonly used food processing techniques. As of 2017, the company's patent portfolio includes 19 patent applications filed and pending in more than 40 countries around the world. Lexaria expects additional new patent awards both in the USA and internationally in 2017 and 2018.
Royalties also play a vital role in Lexaria's revenue-generating business model. The company out-licenses its technology (royalty) to third party partners, and has several deals signed and/or pending. Corporate growth initiatives are guided by a management team with years of combined experience in pharmaceutical and bioscience sectors, invention, toxicology, consumer goods, and other relevant skillsets.
- Patented lipophilic delivery system proven to increase bio-absorption for improved efficacy
Patents cover a variety of lipophilic bio-actives, including cannabinoids, nicotine and vitamins
Growing portfolio of intellectual property includes 19 patents filed across 44 countries
Canadian market for cannabis extracts and oils expected to top C$1.6 billion by 2020
North American market legal cannabis market of US$22.6 billion by 2021
Positioned for growth in expanding Canadian cannabinoid market
First international patent issued and approved in Australia
The key differentiator between Lexaria's products and others on the market is the company's disruptive technology proven to enhance the speed and overall absorption of orally ingested cannabinoids while improving the "unusual" taste of cannabinoids and allowing for lower overall dosing with higher efficacy.
Lexaria's process changes the way edible cannabinoids enter the body to:
- Mask the unusual taste of cannabinoids, eliminating the need for sugar-filled edibles
Reduce the time of onset; THC effects are felt within 15-20 minutes vs. 60-120 minutes
Increase bio-absorption by 5-10x, equal to the absorption achieved by inhalation
Utilizing this process, Lexaria has developed two distinct brands utilizing its patented technology to infuse hemp oil ingredients within lipids in popular foods. These food products demonstrate the effectiveness of Lexaria's key asset: its technology.
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In 2015, Lexaria introduced its ViPova™ black tea to the market. Derived from the Chinese province of Yunnan, the tea is hemp oil-infused within dried evaporated non-fat milk, and it is available in several flavors and varieties. Expanding its addressable market to include other beverage lines, Lexaria in 2016 launched ViPova™ coffee and hot chocolate, applying its patented technology to remove the "unusual" tastes associated with most hemp oil cannabinoid products. ViPova™ teas are sold through www.vipova.com and ship nationwide.
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The Lexaria Energy brand caters to the busy, fitness-oriented consumer. Also containing Lexaria's patented technology, Lexaria Energy efficiently delivers hemp oil ingredients in nutritious and delicious formulations that are low in sugar and high in protein. Lexaria Energy is working to deliver a line of food products that are nutritious, responsibly produced, often gluten-free, and always infused with hemp oil so consumers don't have to compromise between convenience and healthy eating. Lexaria Energy bars are sold online at www.LexariaEnergyFoods.com
A critical component of Lexaria Bioscience's business model is a strong intellectual property portfolio that utilizes the most commonly used food processing techniques. As of 2017, the company's patent portfolio includes 19 patent applications filed and pending in more than 40 countries around the world. These patent applications for lipid-based delivery mechanisms cover but are not limited to molecules such as tetrahydrocannabinol, cannabidiol, nicotine, aspirin, ibuprofen and vitamin E.
Via an international patent application under the Patent Cooperation Treaty (PCT) procedure, Lexaria can pursue patent applications of its core technology in up to 148 countries in such major markets as China, India, Japan, the US, the EU and the UK, among others.
Potential IP Applications
Lexaria continues to investigate and allocate research and development dollars on additional related methods and techniques, striving to find the most efficient methods of achieving the highest bioavailability possible.
Nicotine: More than 99% of all nicotine that is consumed worldwide is delivered via the 5.7 trillion cigarettes sold to the world's more than 1 billion smokers. Approximately 6 million deaths per year, worldwide, are attributed primarily to the delivery of nicotine through the act of smoking, according to the Centers for Disease Control and Prevention.
Relevance: Lexaria postulates that delivery of nicotine to satisfy current demand, utilizing its patented lipid-delivery technology in common food groups, could shift demand from smoking cigarettes to alternative nicotine-based food products. Since most of the adverse health outcomes of nicotine consumption are associated with the delivery method and only to a lesser degree to the actual ingestion of nicotine, there could be a vast positive community health outcome through the reduction in smoking cigarettes. Lexaria is still in the investigative stage of this application, though nicotine is a named molecule in the latest Lexaria patent applications.
Non-Steriodal Anti-Inflammatories: The global pain management market was estimated at $22 billion in 2011, with $5.4 billion of this market being served by Non-Steroidal Anti-Inflammatories (NSAIDs). Opioids, such as morphine, form the largest single pain management sector. Though they are commonly used as pain killers, opioids have numerous significant side effects such as addiction, sedation, respiratory depression, hormone imbalance and more. Some of the most commonly known NSAIDs are aspirin, ibuprofen, and acetaminophen. Although NSAIDs are generally a safe and effective treatment method for pain, they also have been associated with a number of gastrointestinal problems, including dyspepsia and gastric bleeding.
Relevance: Lexaria postulates that delivery of NSAIDs through a lipid-based mechanism could provide the beneficial properties of pain relief with lessened negative gastrointestinal effects, and also potentially deliver lower dosages of active ingredients with similar pain management outcomes as current pill forms at higher dosages. Lexaria is still in the investigative stage of this application, though aspirin, piroxicam, diclofenac, indomethacin, ibuprofen and acetaminophen are all named molecules in the latest Lexaria patent applications.
Vitamins: The global vitamin and supplement market is worth $68 billion, according to Euromonitor. However, because of their synthetic form, many vitamins are not efficiently absorbed by the GI tract outside of their natural food sources. For this reason, non-plant-based vitamins in pill form are often in much higher dosages than is preferable. The introduction of large volumes of vitamins can stress the body's liver and other functions.
Relevance: Lexaria postulates that delivery of fat-soluble vitamins through its patented lipid-based delivery mechanism may result in less waste and lower dosages required than most current pill forms. As well, ingestion of pills is an unpleasant experience for many people so it is possible that vitamin delivery through common food groups could vastly expand market demand for this sector. Lexaria hopes to conduct experiments that could lead to lower initial dosages of vitamins that would reduce potential stress on the body through the elimination process, reducing waste and leading to more comforting delivery. Vitamin E is a named molecule in the latest Lexaria patent applications.
In the Lab
Lexaria has focused on discovering new technologies that can more efficiently deliver cannabinoids to the bloodstream where they can have their desired effect. As part of this strategy, Lexaria recently commenced laboratory work under its collaborative research program with the National Research Council of Canada ("NRC"), under which several studies will be initiated in the coming months designed to optimize Lexaria's patented technology, enabling delivery of lipophilic active agents within foods, beverages, capsules and other ingestible formats. These studies will investigate lipophilic active agent classes including cannabinoids, vitamins, NSAIDs, and nicotine.
Advanced analytical techniques, including mass spectrometry and nuclear magnetic resonance testing, will be used to evaluate the chemical nature of the molecular association that Lexaria's technology is believed to form between lipophilic active agents and the flavor and delivery enabling fatty acid agents that are integral to Lexaria's formulation methodologies. Practical applications of this work could include further broadening or strengthening of Lexaria's intellectual property portfolio and may also provide the foundation for new commercial arrangements.
From June 2015 to August 2015, the company also commissioned an independent, third-party laboratory to test its technology under carefully monitored in vitro conditions. The in vitro lab experiments greatly expanded the company's understanding of the most efficient ways to deliver cannabinoids through ingestion.
Under these initial tests, the company found that by utilizing a mixture of hemp oil, black tea and select lipids, and processed with a patented technological method, intestinal tissue CBD permeability was 325% higher than CBD mixed with black tea and water. When that same mixture is processed with the patented technological method and then compared to the absorption of CBD and water alone, the absorption levels into the human intestinal cells rose to a 499% improvement.
The benefits are obvious: a person requiring 10mg of a substance to achieve a desired outcome would have to consume 200mg of that substance, if the bioavailability is only 5%. Raise the bioavailability rate 30%, however, and consumption drops to 33mg. This is a massive reduction in intake with a lower risk of over-dosage, and leads to a potentially lighter workload on the liver accompanied by certain reductions in waste and consumer cost.
With the benefit of a strong balance sheet, Lexaria has announced a million-dollar R&D budget expected to pave the way to additional commercial applications of the core technology. Already in 2017, Lexaria filed additional applications related to its technology utilizing microwave processing.
The company's growth initiatives are guided by a management team headed by CEO Chris Bunka, a serial entrepreneur who has raised more than $50 million in working capital for the companies he has led over the course of his career. He is supported by a team of professionals with extensive experience in pharmaceutical and bioscience sectors, invention, toxicology, consumer goods, and other relevant skillsets.
Chris Bunka, CEO
Chris Bunka has been involved in several private and public companies. He was well known in Canada for more than a decade as a part-time business commentator in print and radio, and as an author. He has extensive experience in the capital markets, corporate governance, project acquisition and finance, having assisted in the raising of well over $50 million.
John Docherty, President
John Docherty is a senior operations and management executive with over 20 years of experience in the pharmaceutical and biopharmaceutical sectors. Docherty has worked with large multinational companies and emerging, private and publicly held start-ups, and is the former president and chief operating officer of Helix BioPharma Corp. (TSX: HBP), where he led the company's pharmaceutical development programs for its plant and recombinantly derived therapeutic protein product candidates. At Helix, Docherty was also instrumental in the areas of investor/stakeholder relations, capital raising, capital markets development, strategic partnering, regulatory authority interactions and media relations, and he also served as a management member of its board of directors. Prior to this, Docherty was president and a board member of PharmaDerm Laboratories Ltd., a Canadian drug delivery company that developed unique microencapsulation formulation technologies for use with a range of active compounds. Docherty has also held positions with companies such as Astra Pharma Inc., Nu-Pharm Inc. and PriceWaterhouseCoopers' former global pharmaceutical industry consulting practice. He is a named inventor on issued and pending patents and he has a M.Sc. in pharmacology and a B.Sc. in toxicology from the University of Toronto.
Nick Baxter was appointed as a member of the board of directors of Lexaria Corp. in 2009. Baxter received a Bachelor of Science (Honours) from the University of Liverpool in 1975, and has worked on oil & gas projects in many areas of the world. Since the 1980s he has worked with companies in the public markets both in the UK and in Canada, and as a board member brings extensive real-world experience to Lexaria.
Ted McKechnie was appointed as a member of the board of directors of Lexaria Corp. in 2015. McKechnie is a senior entrepreneurial executive with extensive board and senior management experience in the consumer goods industry with a proven track record for achieving corporate financial and growth objectives. He is the former president and COO of Maple Leaf Foods and has held executive positions with Kraft, Frito Lay, General Foods, PepsiCo, and Philip Morris Companies. He is the founder, chairman and CEO of Canada's Technology For Food.
Lexaria is fortunate to be the recipient of widely varying experience and knowledge from a diverse group of advisors who from time-to-time consult with the company. Though each advisor contributes knowledge and experience on an irregular basis, Lexaria benefits from their involvement and their presence.
Dr. Edward Ergenzinger
Dr. Ed Ergenzinger serves as outside patent counsel to Lexaria. He is a U.S. licensed patent attorney who also holds a doctorate in neuroscience (with concentrations in pharmacology and physiology). Dr. Ergenzinger has over 15 years of experience providing patent services to clients that have ranged from small start-ups to some of the world's largest pharmaceutical and biotechnology companies. His professional experience includes serving as director of Intellectual Property and Legal Affairs at the Duke Human Vaccine Institute where he managed intellectual property assets arising from over $50 million per year of extramural grants. He also provided seminal patent prosecution and worldwide portfolio management services for a second-generation vaccine that generated $4.5 billion in revenue in 2014. He is lead author or co-author on over 40 scientific and legal publications.
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New ViPova Products Introduced
Kelowna, BC / August 12, 2015 / Lexaria, Corp. (OTCQB:LXRP) (CSE:LXX) (the “Company”) is pleased to announce a suite of new ViPovaTM products available for purchase immediately. The new products all utilize Lexaria’s patent-pending technology designed to enhance bioavailability.
In addition to the new products listed below, Lexaria is pleased to announce that ViPovaTM brand coffee and hot chocolate are expected to be available in September; and that the much-anticipated Lexaria Energy protein bar is expected to be available around the end of September, in two initial flavors. More information on these products will be released as available.
Among the highest selling tea categories in the world are Black, De-Caf, Green, and Earl Gray – and Lexaria is pleased to inform its stakeholders that with today’s announcement, we now offer teas in most of the worlds favored categories. This is an additional important step in delivering the superfood goodness of hemp through popular foods.
The new ViPovaTM brand teas that are now available are:
Earl Gray Tea
Rich Bergamot flavored broken orange pekoe and infused hemp oil. The distinctive citrus flavor comes from the oil extracted from the rind of the bergamont orange, a small citrus tree grown mostly in Italy. For those craving something more exotic, try “London Fog” comprised of ViPovaTM Earl Gray tea, steamed milk and a touch of vanilla.
Herbal Cherry Black Tea
Fruity, sweet cherry and safflower combined with black tea and hemp oil. With the traditional caffeine content of black tea, this is a bright and flavorful pick-me-up in the morning or mid day. Delicious.
Low-Caf Organic Evening Green Tea
Blended organic green teas and rich hemp oil with a nutty flavor and reddish-gold appearance. Low in caffeine, ViPovaTM Evening Green Tea is perfect as a calming, soothing brew in the afternoon and evening, and only ViPovaTM brand Evening Green Tea contains hemp oil specially formulated for enhanced absorption.
De-Caf English Breakfast Tea
A smooth, traditional broken orange pekoe modernized with our patent-pending hemp oil infusion. You may have tried orange pekoe before, but nowhere else will you find our patent pending formula. Naturally de-caffeinated, you can enjoy this day and night while experiencing hemp’s superfood qualities.
Herbal Masala Chai Tea
ViPovaTM has developed unique spiced tea formulations you simply cannot find anywhere else! A sweet & spicy blend of rooibos, ginger, cinnamon, cardamom, vanilla, and hemp oils. Rooibos contains polyphenols and is high in ascorbic acid. Naturally free of caffeine, this wonderful blend can be enjoyed any time of day or evening.
Herbal Bengal Chai Tea
Our most complex blend of rooibos, pepper, cloves, ginger, cinnamon, cardamom, vanilla and hemp oils. Rooibos is caffeine-free, does contain polyphenols and is naturally high in ascorbic acid. The cinnamon and vanilla make it sweet, but you’ll appreciate its spicy side too.
All the teas listed above are in stock now and available for immediate shipping directly to consumers at just $24 for 8-bag packs, with incentives for larger quantities. Wholesalers are always welcome to make contact to discuss commercial terms. Order at www.vipova.com
The new tea flavors join the existing two tea lines – ViPovaTM Starter and ViPovaTM Original Yunnan Black – to now offer consumers a total of 8 different ViPovaTM tea experiences. ViPova Starter 4-bag tea packs are an entry-level product with our lowest price to the consumer at just $10.
Lexaria believes the greatly expanded line of tea flavors and recent lower pricing will together combine to offer consumers their most compelling options in the marketplace today, for flavorful foods delivering the goodness of hemp oil compounds. Together with the ever expanding number of online and traditional locations to buy the products, Lexaria believes it is on the cusp of a meaningful increase in sales revenues.
Lexaria also points out the balanced offering of caffeinated and de-caffeinated products. Containing caffeine are the VipovaTM Starter; ViPovaTM Original Yunnan; Earl Gray; Herbal Cherry; and Low-caf Evening Green. Free of caffeine are the English Breakfast; Masala Chai; and Bengal Chai.
Seperately, Lexaria also announces that it has signed a license agreement with 51%-owned subsidiary PoViva Tea LLC, formalizing and granting Lexaria a 35-year worldwide license to use and re-license the patent-pending technology covered under four different US Provisional Patent Applications, one US Utility Patent Application, and one PCT Patent Application.
Lexaria’s technology is designed to allow for higher bioavailability rates for THC and for CBD than is possible without lipophilic enhancement technology. This can allow for lower overall dosing requirements and/or higher effectiveness in active molecule delivery. Lexaria’s innovative lipid formulation process is designed to allow the delivery of molecules such as are contained within hemp oil without the harmful side effects of ingestion via smoking, and should be embraced for the benefits to public health.
Lexaria is a food sciences company focused on the delivery of hemp oil compounds procured from legal, agricultural hemp, through gourmet foods based upon its proprietary infusion technologies. www.lexariaenergy.com
ViPovaTM uses only legal hemp oil extracts, grown from agricultural hemp in locations where it is legal to do so, in ViPovaTM-branded tea. ViPovaTM uses its patent-pending process to infuse concentrated amounts of hemp oil within lipids in its tea, providing more bioactivity and comfort to the body during the absorption process. Only ViPovaTM has this ground-breaking technology for hemp oil/lipid infusion. www.vipova.com
Lexaria Files U.S. Utility and International Patent Applications Encompassing Expanded Uses for Its Core Technology
Kelowna, BC / June 11, 2015 / Lexaria, Corp. (OTCQB:LXRP) (CSE:LXX) (“Lexaria” or the “Company”) provides the following information regarding existing and new patents pending.
Lexaria has initiated the simultaneous filing of a U.S. utility patent application and an International patent application under the Patent Cooperation Treaty (PCT) procedure, both at the U.S. Patent and Trademark Office. These applications follow the Company’s 2014 and 2015 family of provisional patent application filings in the U.S. and serve two additional broad purposes:
- Lexaria is seeking protection of its intellectual property under international treaties. To this end Lexaria has filed for PCT patent application protection. There are 148 countries that are signatories to the Patent Cooperation Treaty, including such major markets as Canada, China, India, much of Europe and the Middle East, the United Kingdom and Japan among others.
Lexaria believes its lipid infusion technology has applications beyond the delivery of just cannabinoids. Based on further formulation testing, Lexaria has included additional lipophilic molecules that may be delivered via food and beverage formats utilizing its technology, widely encompassing three major new market opportunities for the Company: Nicotine; Nonsteroidal Anti-Inflammatories (NSAIDs); and Vitamins.
Lexaria notes that although additional testing and examination of these formulations is planned prior to any potential market introduction for these three new market opportunities, the Company owes a fiduciary duty to its shareholders to protect the intellectual property associated with its inventions. Since the relevance of this technology has the potential to be markedly material, the Company is of the view that reporting these developments is warranted. Additional details are provided below, and further information will be provided in the future.
“Our technology opens up whole new avenues for delivering numerous bioactive compounds of interest into the body as part of anyone’s normal diet,” said John Docherty, President. “We believe that consumer demand could be enormous for these new product formats because they could offer both high bioavailability and a safe and naturally formulated alternative relative to their conventional predecessors.”
INTERNATIONAL PATENT PROTECTION
When Lexaria first began examining the legal medical cannabis market in 2013, and entered the market in 2014, the Company believed it could make an impact in perhaps both the Canadian and U.S. marketplaces. Our pursuit and development of technology has expanded our potential area of impact, both geographically and by sector. Because of the applicability of our technology to markets outside of the legal cannabis sector, we have taken the necessary steps to protect that intellectual property within larger global markets, regardless of whether they lie within the medical cannabis sector or in other unrelated sectors.
NICOTINE. More than 99% of all nicotine that is consumed worldwide is delivered through smoking cigarettes. Approximately 6,000,000 deaths per year, worldwide, are attributed primarily to the delivery of nicotine through the act of smoking according to the Centers for Disease Control and Prevention, which also estimates that over $170 billion per year is spent just in the USA on direct medical care costs for adult smokers. 69% of U.S. adult smokers want to quit smoking and 43% of US adult smokers have attempted to quit in any twelve month period.
Worldwide, retail cigarette sales were worth $722 billion in 2013, with over 5.7 trillion cigarettes sold to more than 1 billion smokers.
RELEVANCE: Lexaria postulates that delivery of nicotine to satisfy current demand, utilizing our patent pending lipid-delivery technology in common food groups, could shift demand from smoking cigarettes to alternative nicotine-based food products. Since most of the adverse health outcomes of nicotine consumption are associated with the delivery method and only to a lesser degree to the actual ingestion of nicotine, there could be a vast positive community health outcome through the reduction in smoking cigarettes. Additional research and regulatory compliant investigations would need to be conducted before otherwise healthy foods such as tea, coffee or energy bar snacks containing nicotine could be introduced. Nicotine is a named molecule in the latest Lexaria patent applications.
NSAID. Nonsteroidal Anti-inflammatories are the second-largest category of pain management treatment options in the world. The global pain management market was estimated at $22 billion in 2011, with $5.4 billion of this market being served by NSAID’s. The U.S. makes up over one-half of the global market. The opiods market (such as morphine) form the largest single pain management sector but are known to be associated with serious dependence and tolerance issues.
Some of the most commonly known NSAIDs are ASA (Aspirin), Ibruprofen (Advil, Motrin), and Acetaminophen (Tylenol). (Acetaminophen is not accepted by all persons to be an NSAID.) Although NSAIDs are generally a safe and effective treatment method for pain, they have been associated with a number of gastrointestinal problems including dyspepsia and gastric bleeding.
RELEVANCE: Lexaria postulates that delivery of NSAIDs through a lipid-based mechanism could provide the beneficial properties of pain relief with lessened negative gastrointestinal effects, and also potentially deliver lower dosages of active ingredients with similar pain management outcomes as current pill forms at higher dosages. ASA, Piroxicam, Diclofenac, Indomethacin, Ibruprofen, and Acetaminophen are all named molecules in the latest Lexaria patent applications.
VITAMINS. The global vitamin and supplement market is worth $68 billion according to Euromonitor. The category is both broad and deep, comprised of many popular and some lesser known substances. Vitamins in general are thought to be an $8.5 billion annual market in the U.S. The U.S. is the largest single national market in the world, and China and Japan are the 2nd and 3rd largest vitamin markets.
Vitamin E is fat soluble and can be incorporated into cell membranes which can protect them from oxidative damage. Global consumption of natural source vitamin E was 10,900 metric tons in 2013 worth $611.9 million.
RELEVANCE: Lexaria postulates that delivery of fat soluble vitamins through its patent-pending lipid-based delivery mechanism may result in less waste and lower dosages required than most current pill forms. As well, ingestion of pills is an unpleasant experience for many people so it is possible that vitamin delivery through common food groups could vastly expand market demand for this sector. Vitamin E is a named molecule in the latest Lexaria patent applications.
“Lexaria’s groundbreaking new technology offers a new way of delivering active ingredients. Not only are there a number of important benefits associated with higher absorption rates of beneficial ingredients, but there is a crucial public health benefit associated with any reduction in cigarette or cannabis smoking,” said Chris Bunka, CEO of Lexaria. “I am incredibly proud of the Lexaria team as we continue to investigate whether we have found the first viable alternative to smoking.”
Lexaria is increasingly focused on its pursuit of intellectual property and an expanding portfolio of patent pending applications. The Company continues to work on introducing an expanding variety of consumer food products which remains on target for 2015 delivery.
Lexaria is a food sciences company focused on the delivery of cannabinoid compounds procured from legal, agricultural hemp, through gourmet foods based upon its proprietary infusion technologies. www.lexariaenergy.com
ViPovaTM uses only legal CBD oil extracts, grown from agricultural hemp in locations where it is legal to do so, in ViPovaTM-branded tea. ViPovaTM uses its patent-pending process to infuse concentrated amounts of CBD within lipids in its tea, providing more bioactivity and comfort to the body during the absorption process. Only ViPovaTM has this ground-breaking technology for CBD/lipid infusion. www.vipova.com https://www.vipova.com/
Share structure as of August 9, 2015:
|Outstanding Shares ||39,932,984 ||a/o Aug 09, 2015 |