Why Lexaria Bioscience Corp (OTCMKTS:LXRP) Is A Comeback Play

Lexaria Bioscience Corp (OTCMKTS:LXRP) brightest days lie ahead. The sentiments shared by Chief Executive Officer, Chris Bunka, are slowly coming to fruition, going by recent price action activity. After a steep pullback in 2019, the stock has once again started climbing higher, as investors react to milestones achieved in 2019 that affirm long-term prospects.

Lexaria Bioscience Catalysts and Price Analysis

A confirmation that the global innovator in drug delivery systems achieved almost everything it set out to accomplish in 2019 continues to strengthen market sentiments. The inking of strategic partnerships with Fortune 500 style companies is another development that the management continues to tout.

Likewise, Lexaria Bioscience succeeded in getting its DehydraTECH technology to market, consequently creating an avenue for generating long-term value. The company’s Intellectual Property strategy has also started to pay dividends, affirming what is at stake going forward. Reports that the company is already experiencing an increase in revenues is another catalyst that continues to shore the stock’s sentiments and prospects in the markets.

Lexaria Bioscience has already started bottoming out from all-time lows in what appears to be the development of a positive trend. A 10% plus rally from one-year lows continue to fuel optimism that the stock has clocked a bottom and due for a correction higher.

Standing in the way of the emerging uptrend is the $0.50 mark, which is the immediate short-term resistance level. A rally followed by a close above the critical technical level should pave the way for bulls to push the stock to the $0.70 mark, the next substantial resistance level.

For the stock to turn bullish after the underperformance of the past year, it needs to rise and find support above the $1 a share level. Conversely, failure to take out the critical resistance level would leave the stock susceptible to continued short-selling pressure.

About Lexaria Bioscience

Lexaria Bioscience bills itself as a global innovator of drug delivery platforms. Its flagship product is DehydraTECH technology designed to enhance the way active pharmaceutical ingredients enter the bloodstream. The company also operates a licensed in-house research laboratory that holds a robust intellectual property portfolio with 16 patents.

DehydraTECH Technology Strong demand

After a roller coaster 2019, the tide is slowly moving in favor of Lexaria Bioscience as investors take note of the milestone achieved that affirm long-term prospects. For instance, the company opened discussions with a number of Fortune 500 style companies that continue to ask about its DehydraTECH technology for use in the delivery of cannabis ingredients.

In addition to positioning DehydraTECH for use in the burgeoning cannabis industry, the company is also looking to gain approval for its use in the next-generation nicotine products within America and around the world. The technology has already attracted interest from Altria, a heavyweight in combustible and non-combustible tobacco products.

“Lexaria strongly believes that, given the choice, many of the world’s one billion smokers would elect to experience their nicotine in a manner that does not rely on either smoking or vaping, and Lexaria can help enable these alternatives,” said Chris Bunka, CEO of Lexaria Bioscience and Lexaria Nicotine.

Likewise, the company is looking to build upon a contractual relationship it inked with a GMP certified FDA registered production company. Under the terms of the agreement, the company is looking to get enhanced DehydraTECH powders for marketing in the U.S. The deal should help the company meet the strong demand from many companies looking for DehydraTECH bulk powders for use in specific product lines.

IP Strategy and Revenue Growth Outlook

The company’s IP strategy is already bearing fruits following the securing of patents for the use of DehydraTECH for treatment of various health conditions such as heart disease and Alzheimer in Australia

Lexaria Bioscience has also started to experience an increase in revenue, expected to support sustainable and supportive growth. Given the growing clientele base, management expects revenues to more than double in 2020.

Bottom Line

Lexaria Bioscience shares appear to be undervalued, given the milestones achieved that positions the company for accelerated growth in 2020. With the company projecting double-digit revenue growth at the back of the growing demand of the flagship DehydraTECH technology, the future certainly looks bright.

That said, the stock looks set to continue climbing higher after a steep pullback in 2019, on renewed investor interest, amidst improving fundamentals.

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Disclosure: We have no position in Lexaria Bioscience and have not been compensated for this article.