Pond Technologies

DehydraTECH(TM) Nicotine Pouches Could Make Smoking Obsolete

05 October 2021

Lexaria Bioscience Corp (NASDAQ: LEXX) is making headlines again this week. In a study conducted by a leading independent testing facility, DehydraTECH™ 2.0 nicotine pouches easily outperformed generic nicotine benzoate pouches, hitting peak delivery rates within eight minutes, and then again at thirty minutes. The generic pouches hit peak at forty-five minutes.

It's a significant disparity when comparing two similar products, but Lexaria already knows their technology works. DehydraTECH™ absorption has been extensively tested with cannabinoids since 2018. Lexaria's DehydraTECH™ CBD is currently in human clinical trials as an anti-hypertensive drug. The results there have been positive at every phase.

According to CEO Chris Bunka, "DehydraTECH™ Nicotine Pouches can deliver nicotine into the bloodstream at a rate that is ten to twenty times faster than the controls in this latest study. Our goal is to render pulmonary administration practices like smoking and vaping obsolete. Performance gains of this magnitude could make that possible."

Nicotine Absorption Rates Have Hampered the Nicotine Pouch Market

Cigarette smoking kills eight million people every year. It's also highly addictive, so smokers are reluctant to give it up for a substitute that doesn't deliver the desired dose of nicotine. That's what's been slowing the growth of the nicotine pouch market. Existing products don't deliver enough nicotine into the bloodstream to satisfy the cravings of smokers.

Vaping is not the answer. According to a study published by Harvard Medical School, "Nearly 200 e-cigarette users in twenty-two states have developed serious lung disease." It's a small data set and the link cannot be proven, but medical professionals believe it's due to chemical irritants or allergic reactions to substances in the inhaled vapors.

Nicotine pouches, on the other hand, have passed the test of time. The FDA gave authorization in 2019 for nicotine pouch manufacturers to display reduced risk claims on their packaging. The wording of these claims is, "Puts you at lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis." That's in comparison to cigarettes.

Unfortunately, if smokers quit based on health hazards alone, there wouldn't be a need for nicotine substitution. Lexaria believes the answer is to provide a nicotine pouch that delivers higher doses of nicotine to the bloodstream faster. DehydraTECH™ Nicotine Pouches accomplish that. They are the first oral deliverable that can truly satisfy the smoker's craving.

Global Nicotine Products are an $818 Billion Market

DehydraTECH™ Nicotine Pouches deliver a maximum dose of nicotine in eight minutes. The global nicotine market is estimated at $818 billion in annual global sales. That includes cigarettes, cigars, nicotine gum, lozenges, patches, and nicotine pouches, which were estimated at $2.3 billion in sales last year. DehydraTECH Nicotine Pouches are not on the market yet.

That's a small percentage of the overall nicotine market, but sales of nicotine pouches are expected to grow to $22 billion by 2027, and that's the low end of the scale. A potent oral substitute for smokers could make the number go up exponentially. With DehydraTECH™ Nicotine Pouches, Lexaria is positioned to make that happen.

Disclaimer

This communication was produced by PCG Digital Holdings, LLC, an affiliate of PCG Advisory Inc., (together "PCG"). PCG is not a registered or licensed broker-dealer nor investment adviser. No information contained in this communication constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation of any security. PCG may be compensated by respective clients for publicizing information relating to its client's securities. See www.pcgadvisory.com/disclosures.

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