The Canadian cannabis industry has made significant strides over the last year and although licensed producers have been in the spotlight, other companies have also benefited from this movement.
One company we have been watching is Lexaria Bioscience (OTC: LXRP) which has announced several developments over the last year that have the company well positioned for growth going forward.
Yesterday, Lexaria made a major announcement when the company received a new Notice of Allowance from the United States Patent and Trademark Office (USPTO) for the use of its technology as a delivery platform for all cannabinoids including THC; fat soluble vitamins; non-steroidal anti-inflammatory pain medications; and nicotine.
This Notice of Allowance applies to the delivery of all active pharmacological ingredients Lexaria had been seeking. While Lexaria has always had confidence in its patent applications, the rapid allowance for this broad API applicability is significantly ahead of expectations.
Focused on Strengthening its Intellectual Property Portfolio
Last year, Lexaria was issued a patent, Cannabinoid Infused Food and Beverage Compositions and Methods of Use Thereof, that covered the company’s method of improving bioavailability and taste of certain cannabinoid lipophilic active agents in food products.
Lexaria expects a formal patent to be issued for the new Notice of Allowance within three to four months which is expected to provide protection until at least 2035.
The issuance of the notice of allowance from the USPTO further strengthens Lexaria’s positioning in any potential agreements. We will keep an eye on how this development improves the company’s positioning and expect to see more announcements before year-end.
A Long-Term Opportunity
We are favorable on the long-term implications of this notice of allowance and expect to see Lexaria issued a full patent in the next quarter. This is a significant development for the company and expect to see the shares trade higher off this news.
The expansion of the patent to include all cannabinoids significantly expands the type of projects Lexaria can work on. We recommend that investors keep an eye on Lexaria as the shares look ready to break out.
Shares of Lexaria have moved well off its recent lows and the shares have been trading volatile. This volatility created a great opportunity for new investors and we recommend that investors keep Lexaria on their radar.
By Michael Berger – technical420