Lexaria pursues oral GLP-1 drug delivery partnerships

KELOWNA, BC - Lexaria Bioscience Corp. (NASDAQ:LEXX) announced it is in early-stage discussions with several multinational pharmaceutical companies regarding its oral GLP-1 drug delivery technology, according to a press release statement issued today. The company, with a market capitalization of $18.17 million, has seen its stock decline 48.6% over the past six months despite a year-to-date gain of 18.3%.

The company is developing its DehydraTECH platform to deliver GLP-1 medications orally as an alternative to injections. Lexaria stated it aims to reduce gastrointestinal side effects commonly associated with GLP-1 drugs.

The GLP-1 market has experienced substantial growth. Eli Lilly’s tirzepatide is expected to generate $45 billion in revenue for 2026, while Novo Nordisk’s semaglutide is projected at nearly $40 billion. TD Cowen raised its 2030 sales forecast for the sector from $101 billion to $139 billion. According to InvestingPro analysis, LEXX appears undervalued at current levels, with the stock trading below its Fair Value—a potential opportunity as the company pursues this massive market.

A survey of 2,173 patients who discontinued GLP-1 drugs identified gastrointestinal discomfort and injection-related concerns as primary reasons for stopping treatment. A separate study of over 125,000 patients found that 46.5% of patients with type 2 diabetes and 64.8% without the condition discontinued GLP-1 use within one year.

Market research published in March surveyed 1,536 Canadians and 1,012 Americans, finding that 11% of American adults and 8% of Canadian adults currently use GLP-1 prescriptions. The survey indicated 12% of Americans and 6% of Canadians expressed interest in taking GLP-1 prescriptions.

Novo Nordisk’s oral semaglutide tablet received FDA approval for weight loss in January and reached over 26,000 prescriptions within two weeks. Goldman Sachs forecasts oral GLP-1s will capture 24% of the 2030 obesity drug market.

Lexaria holds over 60 granted patents for its drug delivery technology and operates a licensed research laboratory. InvestingPro Tips note the company is quickly burning through cash, though it maintains more cash than debt on its balance sheet. Investors can access 10 additional ProTips for deeper insights into LEXX’s financial health.

In other recent news, Lexaria Bioscience Corp. has launched its 2026 research and development program, focusing on advancing its drug delivery platform with new formulations. The company has outlined three studies that will be the primary focus for the first three quarters of the year. Lexaria has also achieved a significant milestone in its intellectual property strategy by securing a total of 60 patents worldwide, including new patents in Australia, the European Union, and the United States for various treatment methods. Additionally, Lexaria reported progress in its DehydraTECH technology, which showed reduced side effects in GLP-1 drugs compared to injectable versions. This development was detailed in a letter from CEO Richard Christopher, highlighting studies conducted with active ingredients from Novo Nordisk and Eli Lilly. At the recent annual shareholder meeting, Lexaria’s shareholders approved the election of board members and the appointment of an auditor. However, H.C. Wainwright has lowered its price target for Lexaria Bioscience to $1.50 from $4.00, despite maintaining a Buy rating. This adjustment follows the final results of Lexaria’s Phase 1b GLP-1-H24-4 study in Australia, involving patients with weight and diabetes-related conditions.

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