- Lexaria’s patented DehydraTECH(TM) has 26 granted patents worldwide, including four in Japan
- Lexaria stands to gain substantial revenue through the licensing of DehydraTECH technology across minimum quarterly payments for license use by Premier and royalties for products sold
- By 2028, the CBD market is expected to reach US$47.22 billion, driven by increased demand for CBD use in health and wellness
Lexaria Bioscience (NASDAQ: LEXX), a global innovator in drug delivery platforms and developer of the patented DehydraTECH(TM) technology for the delivery of fat-soluble molecules and drugs, has announced that Japanese Licensee, Premier Wellness Science Co., Ltd., has officially launched the first generation of its new cannabidiol (“CBD”) products under the brand, “Ko,” on July 21, 2022, for the Japanese consumer market (https://cnw.fm/Pm6hK). The exclusive rights between Premier and Lexaria are subject to two previously issued licenses for using DehydraTECH technology in Japan for non-pharmaceutical cannabinoid products. As of July 28, 2022, Lexaria has been granted 26 patents worldwide.
Under the terms of the license agreement with Lexaria, Premier purchased rights to the company’s DehydraTECH technology for use in the non-pharmaceutical market for CBD and hemp ingredients in oral liquid and non-liquid product forms, including topical, hair-care, lip-care, and cosmetics. To retain ongoing exclusivity, the minimum quarterly payments from Premier to Lexaria will begin September 1, 2022, and will total US$4,527,500 during the first five years of the agreement. Additional payment beyond five years will be required to keep the license in good standing.
The “Ko” brand is focused on the endocannabinoid system and circadian rhythm, supporting the health and wellness of all consumers, specifically highlighting the concept of wellness for all, and will contain CBD and other botanical extracts. Ko-branded products containing DehydraTECH delivery technology are expected to be introduced during Q2 2023, following a rigorous product development process and formula optimization.
Premier will create its own e-commerce infrastructure with digital marketing campaigns in collaboration with the licensee’s parent company, Premier Anti-Aging Co, Ltd., listed on the Tokyo Stock Exchange under the ticker symbol ‘4934:JP.’ Wholesale of the “Ko” brand will be done with a third-party Japanese-based distributor, also listed on the Tokyo Stock Exchange, to expand sales reach. The distributor and logistics supplier has shipped more than 3.5 billion products during the fiscal year and comprises more than 50,000 products and over 50,000 retail locations across the cosmetics, OTC pharmaceuticals, and nutraceutical wholesale industries.
In addition to the licensee payments, Lexaria will receive royalties from DehydraTECH-enabled product sales, which are anticipated to be greater than the negotiated minimum payments for the license use if Premier reaches revenue targets. Even with the worst-case projected revenue, Lexaria could expect royalties of US$5 million annually by the fifth year of the contract.
Lexaria’s DehydraTECH technology speeds up delivery, increases bioavailability, increases brain absorption, improves drug potency, reduces drug administration costs, and masks unwanted tastes. Animal studies have demonstrated the propensity of the technology to elevate the quantity of the drug delivered across the blood-brain barrier by as much as 1,900 percent. The technology is suitable for use within a wide range of product formats, including pharmaceuticals, nutraceuticals, consumer packaged goods, and over-the-counter capsules, pills, tablets, and oral suspension.
The CBD market is primarily driven by increased demand for use in health and wellness and was valued at US$4.9 billion in 2021. The market is expected to grow at a CAGR of 21.3%, resulting in a value of US$47.22 billion by 2028 (https://cnw.fm/8yp9F). Lexaria’s DehydraTECH technology is anticipated to leverage this growing market, using its patents and exclusive licensing to support the demand created within the industry.
For more information, visit the company’s website at www.LexariaBioscience.com.
NOTE TO INVESTORS: The latest news and updates relating to LEXX are available in the company’s newsroom at https://cnw.fm/LEXX
HempWire (HW) is a dedicated information provider focused on (1) aggregating hemp-related news, (2) issuing HempNewsBreaks designed to update investors on the latest developments in the hemp market, (3) enhancing corporate news releases, (4) providing full-service distribution and social media offerings to public and private client-partners and (5) designing and implementing all-inclusive corporate communication solutions. HW is strategically positioned within the rapidly expanding hemp sector with a team of journalists working to help a growing roster of public and private companies reach a wide audience of investors, consumers and members of the media. We leverage a vast network of more than 5,000 key syndication outlets to deliver unparalleled visibility, recognition and content to the hemp industry. HempWire (HW) is where HEMP news, content and information converge.
To receive instant SMS alerts, text HEMPWIRE to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.hempwire.com
Do you have a questions or are you interested in working with HW? Ask our Editor
HempWire is part of the InvestorBrandNetwork.