On Monday, an analyst from H.C. Wainwright maintained a Buy rating and a $10.00 stock price target for Lexaria Bioscience (NASDAQ:LEXX), following the company's financial results for fiscal year 2024, which ended on August 31, 2024. According to InvestingPro data, analyst targets for LEXX range from $8.00 to $12.00, suggesting significant upside potential from current levels.
The company reported revenue of $0.5 million and a net loss of $5.8 million, or ($0.47) per share, which was slightly higher than the anticipated $5.0 million loss. At the fiscal year's end, Lexaria had $6.6 million in cash and investments.
InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 7.18 and holds more cash than debt on its balance sheet. Want deeper insights? InvestingPro offers 8 additional key tips about LEXX's financial health. The company experienced cash outflows from operating activities totaling ($5.0 million) during the fiscal year.
In October 2024, Lexaria closed a registered direct offering, issuing 1.6 million shares of common stock at a price of $3.06 per share, amounting to gross proceeds of $5 million. This transaction is estimated to have bolstered the company's pro forma cash position to approximately $11.2 million.
Lexaria recently completed dosing in its human pilot study #3 (GLP-1-H24-3) of DehydraTECH-processed tirzepatide, involving nine healthy volunteers. The study included an initial and final seven-day dosing phase, with a washout period in between, and no serious adverse events were reported.
The goal of the study is to evaluate the tolerability, blood absorption levels, and blood sugar control of the compound, which is formulated using a commercially available Zepbound injectable formulation.
Tirzepatide, which is currently only available in injectable form and marketed under the brand names Zepbound and Mounjaro by Eli Lilly (NYSE:LLY; not rated), is projected to generate $15 billion in revenue in 2024. The analyst noted that positive results from this study could potentially widen the scope of DehydraTECH's delivery technology within the GLP-1 sector.
Results from the study are expected to be reported in January 2025. With LEXX trading near its InvestingPro Fair Value and showing impressive year-to-date returns of 66.4%, investors seeking detailed valuation metrics and growth forecasts can access comprehensive analysis through InvestingPro.
In other recent news, Lexaria Bioscience has been making strides in its research and development efforts. H.C. Wainwright has upheld its Buy rating on Lexaria Bioscience, reflecting positive results from the company's WEIGHT-A24-1 diabetes animal study and the potential of its DehydroTECH candidates. The study demonstrated superior body weight control and significant improvements in blood sugar levels compared to Rybelsus.
Lexaria Bioscience also launched a unique study to track the biodistribution of DehydraTECH-enabled semaglutide molecules in rodents, aiming to enhance its discussions with potential industry partners. Furthermore, the company has commenced a human pilot study to assess an oral dosage form of the diabetes treatment tirzepatide, processed with DehydraTECH technology.
In terms of corporate developments, Lexaria Bioscience has announced a combined Annual and Special Meeting of Shareholders, following a recent private placement of share purchase warrants. Moreover, the company has entered a Material Transfer Agreement with PharmaCO for pre-clinical trials of DehydraTECH.
These recent developments underscore Lexaria Bioscience's commitment to advancing its research and engaging with its shareholders while maintaining a positive outlook from analysts.
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