KELOWNA, British Columbia - Lexaria Bioscience (NASDAQ:LEXX) Corp. (NASDAQ: LEXX & LEXXW), a company specializing in drug delivery technology, has highlighted significant growth within the glucagon-like peptide-1 (GLP-1) receptor agonist market sector. The market, which was valued at less than $4 billion in 2020, has expanded rapidly with two drugs, semaglutide and tirzepatide, capturing over 95% of the current market share.
In the second quarter of 2024, the combined revenue of semaglutide, marketed as Wegovy®, Ozempic®, and Rybelsus®, and tirzepatide, sold under the names Mounjaro® and Zepbound®, reached $11.04 billion. This marks a significant increase from $5.89 billion in the second quarter of 2023 and only $2.55 billion in the same period of 2022.
The surge in market growth is partly attributed to the expanding applications of GLP-1 drugs beyond their initial use for weight loss and diabetes control. Recent FDA approval for Wegovy® (semaglutide) to reduce cardiovascular risks has broadened its therapeutic use. Studies have shown that semaglutide injections can reduce cardiovascular risks by approximately 20%. Additionally, GLP-1 drugs have been associated with reduced harm from chronic kidney disease and lower mortality rates in type-2 diabetic patients with acute kidney disease.
Despite this growth, oral tablet forms of GLP-1/GIP drugs represent only about 10% of the market, which is still dominated by injectable delivery. However, Lexaria anticipates that the market share for oral tablets will increase as more options become available. The company's DehydraTECH drug delivery system is expected to play a significant role in this shift towards oral delivery.
Lexaria's DehydraTECH technology has demonstrated improved drug delivery kinetics and blood sugar control with semaglutide. The company continues to focus on the GLP-1/GIP drug sector with ongoing studies and evaluation.
The information for this report is based on a press release statement. Lexaria has provided evidence of DehydraTECH's efficacy, but as with all forward-looking statements, they reflect the company's current expectations and are subject to risks and uncertainties.
In other recent news, Lexaria Bioscience Corp. has appointed Richard Christopher as the new CEO and Michael Shankman as the new CFO. These changes in leadership come as the company prepares for a period of strong growth. Lexaria Bioscience has also entered into a Material Transfer Agreement with PharmaCO for pre-clinical trials of its patented drug delivery platform, DehydraTECH.
Preliminary results from Lexaria's human pilot study indicate a trend toward higher absorption of DehydraTECH-processed Rybelsus. An ongoing animal study suggests potential benefits in diabetes management and weight loss efficacy through DehydraTECH technology. In light of these recent developments, analysts from H.C. Wainwright have maintained their Buy rating for Lexaria Bioscience.
The company has emphasized that these developments are recent and further results from ongoing studies are anticipated. As always, these developments are subject to further research and regulatory approvals. Remember, this article provides an overview of the company's recent news and does not offer a comprehensive view of the company.
InvestingPro Insights
Lexaria Bioscience Corp. (NASDAQ: LEXX) is making waves in the rapidly expanding GLP-1 receptor agonist market, and recent financial data from InvestingPro provides additional context to the company's position.
According to InvestingPro data, Lexaria's revenue growth stands at an impressive 34.05% over the last twelve months as of Q3 2024, aligning with the company's focus on the booming GLP-1 market. This growth is particularly noteworthy given the company's relatively small revenue base of $0.41 million USD, suggesting significant potential for expansion as its DehydraTECH technology gains traction in the oral GLP-1 drug delivery space.
InvestingPro Tips highlight that Lexaria "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These financial strengths position the company well to continue its research and development efforts in the competitive GLP-1 market without immediate financial pressure.
However, it's important to note that Lexaria is currently not profitable, with a negative operating income of $4.66 million USD over the last twelve months. This is not uncommon for biotech companies in the development stage, and the market seems to be pricing in future potential, as evidenced by the stock's strong performance – InvestingPro data shows a remarkable 211.71% price return over the past year.
Investors interested in a deeper dive into Lexaria's financials and prospects can access 8 additional InvestingPro Tips, providing a more comprehensive view of the company's position in this exciting market segment.
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