Lexaria Bioscience Corp (OTCMKTS:LXRP) concluded its first Phase R&D program of oral nicotine delivery forms using the patented DehydraTECH™ solution with Altria Venture Inc.
Lexaria concludes an R&D program on oral nicotine delivery forms
The first phase of R&D program was started to evaluate reduced health risks compared to combusted tobacco from an initial DehydraTECH™ oral nicotine form. Lexaria announced the preliminary formulation results in 2018, and showed acceptable microbiological and chemical stability. Results of the previous study indicated that the formulation was well tolerated in animal studies with no effects related to organ weight, survival, and there was no related test article to histopathological tissue outcomes
Also, there were no problems with throat irritation and burn in chew format and oral pouch at recommended commercial doses. The formulation also showed the formation of an exclusive blend of nanoparticles without forming covalently linked molecular entity construct after molecular characterization by Canada’s National Research Council.
Altria exercises “First Warrant Tranche Trigger”
Altria has exercised rights to activate “First Warrant Tranche Trigger” which indicates that the first phase of the R&D program has been concluded. This means that Altria will now have exactly 90 days for it to exercise the First Tranche through staged payment to Lexaria’s subsidiary Lexaria Nicotine according to terms of the agreement. The payment will allow Altria retain the current market exclusivity in the US for the DehydraTECH™ tech for oral nicotine delivery.
Besides exercising the First Warrant Tranche, Altria still maintains current minority interest and board representation in the subsidiary. Also, Altria still retains the non-exclusive utilization of the DehydraTECH™ outside the US and already has agreed to a previously defined royalty compensation schedule with Lexaria if it chooses to use the tech commercially.
Lexaria CEO Chris Bunka stated that the first phase R&D program findings offer significant insights into the DehydraTECH™ solution. He added that they are proud to have completed the phase and lauded the joint researchers’ efforts at NRC and Altria for working with Lexaria.