Drug Delivery Platform Innovator Investor Presentation February - - PowerPoint PPT Presentation

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Drug Delivery Platform Innovator Investor Presentation February - - PowerPoint PPT Presentation

Lexaria Bioscience Corp. LXX:CSE | LXRP:US Drug Delivery Platform Innovator Investor Presentation February 2019 LexariaBioscience.com 1 Disclaimer This presentation includes forward-looking statements within the meaning of Section 27A


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Lexaria Bioscience Corp. LXX:CSE | LXRP:US Drug Delivery Platform Innovator

Investor Presentation February 2019 LexariaBioscience.com

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Investor Presentation

Disclaimer

This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, evaluation of medical marijuana projects, alternative health projects or products, and cannabidiol-fortified products or services for participation and/or financing, competitive positions, growth opportunities, plans and

  • bjectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan,"

"estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions that are forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements including, without limitation, foreign exchange and other financial markets; changes of the interest rates on borrowings; whether or not the Company will be successful in executing its business plan in whole or in part; hedging activities; changes in commodity prices; changes in the marketing or capital project expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Lexaria Corp. operates. These and other risks and uncertainties are more fully described in our periodic reports and other disclosure documents filed by Lexaria Corp. from time to time with regulatory authorities available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, and the reader is encouraged to review these documents. Planned dates stated herein are estimates only, based on best information available. Dates are not assured and are subject to revision without notice. The Company assumes no obligation, except as required by law, to update any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation is not an offer to sell or a solicitation of an offer to buy securities of Lexaria Bioscience Corp. It is a short summary of certain information for introductory purposes only and is not to be relied upon for investment purposes. No statement within has been evaluated by the Food and Drug Administration, and no product or service is intended to diagnose, treat, cure or prevent any disease.

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Investor Presentation

Simple and cost effective Increases bioavailability Improves speed

  • f onset

Masks unwanted taste

Drug Delivery Platform Innovator

Eliminates the need for sugar- filled edibles. Equates that of less healthy administration methods like inhalation Effects are felt within 10-20 min (vs. 60-120 min). Easy to implement

DehydraTECHTM - Patented technology, Changing the way Active Pharmaceutical Ingredients (“APIs”) enter the body orally

Eliminates the need for sugar- filled edibles.

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Investor Presentation

Method of use & Composition of matter claims

  • Cannabinoids (CBD, THC)
  • Nicotine (and its analogs)
  • NSAIDs
  • Fat soluble vitamins

Multiple dosage forms - foods, liquid emulsions, tablets, capsules

50+

Patent Applications

10

Patent Families

10

Patents Granted 6 USA 4 Australia

DehydraTECH™ Patent Portfolio

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Nicotine NSAIDs Vitamins Cannabis

Commercial Applications

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  • Ingestible product

formats of all types,

  • Enhanced palatability,

speed of effectiveness and potency,

  • Viable and healthier

alternative to smoking/vaping.

  • Existing and new

ingestible product formats,

  • Enhanced absorption

performance for synthetics as well as natural fat soluble vitamins (A, D, K & E).

  • Alternate means to

formulate NSAIDs,

  • Higher bioavailability,
  • Lower input

requirements,

  • Less burden on liver

and kidneys (lower toxicity).

  • World’s first ingestible

nicotine products,

  • Alternative to

smoking/vaping, gums and patches,

  • High bioavailability

without first pass liver metabolism.

Estimated Global Market Sizes

Sources: ArcView Research & EuroMonitor

$13B $31B $60B $990B

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Cannabis | Cannabinoids | THC | CBD Oral Delivery

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Cannabinoids: Entering the Blood Stream

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3 prominent ways cannabinoids enter the blood stream:

Inhalation

High bioavailability (est. 30%) Harmful to Lungs

Sub-lingual (under tongue)

Medium bioavailability (est. 16%) Foul taste

Oral – Gastrointestinal Tract

Low bioavailability (est. 3-5%) Sugar filled, to mask taste

DehydraTECHTM

transforms the way cannabinoids enter the bloodstream through the Gastrointestinal Tract

Fast Acting Improved Taste Increased Bioavailability

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Consumer Shift Away From Flower

Market share for flower is eroding – even though the market is growing and prices are dropping.

66 62 59 54 44 34 38 41 46 56 2014 2015 2016 2017 Q1 2018

Colorado

54 44 46 56 Q1 '17 Q1 '18

Oregon

43 40 57 60 Jan '18 April '18

California

$372M $4.94/g Q1 2014 (Colorado) Q1 2018 Non-flower Market share % Flower Source: colorado.gov bdsanalytics.com $7.12/g $150M

Apr May Jun Jul Aug Sept Cannabis Oil 3734 4406 4124 4310 4391 4455 Dried Cannabis 2354 2310 2103 2151 2069 1755 3734 4406 4124 4310 4391 4455

Canada:

Cannabis sold to clients during 2018 (kg)

In Canada’s tightly regulated market (with limited product formats), consumers are moving away from smoking.

Source: canada.ca

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Cannabis Consumption Trends

Trend to limit dosage in edibles Trend away from smoking Trend toward beverages & edibles

DehydraTECH™ Improves cannabinoid absorption DehydraTECH™ Improves alternate delivery methods DehydraTECH™ spans foods, beverages, nutritional supplements and more

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Cannabinoid Absorption - Clinically Proven

European human clinical study Double-blind 90 mg dose 317% more CBD delivered ≤ 30 min. Higher CBD delivery throughout entire study

10 20 30 40 50 60 100 200 300 400 Plasma concentration (ng/mL) Time (min)

Plasma Concentration Comparison

TurboCBD™ DehydraTECHTM Control

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Out-license to third- party partners

High margin royalty model, Sample DehydraTECH licensees:

www.1906newhighs.com www.hillstreetbeverages.com

Demonstration products

TurboCBD™ capsules ViPova™ teas Distribution partnerships

Innovation & Research

New product development Patent applications Clinical trials

Business Model: Royalties & Sales

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Lexaria Nicotine Oral Nicotine Delivery Forms

LexariaNicotineCo.com

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Nicotine: a smoke-free future?

No Nicotine edibles

due to nicotine’s inability to securely pass through the GI tract without irritation.

Phillip Morris

pledges $1B to anti-smoking

1.1 billion

smokers globally

7 million

deaths/year globally

1 billion

deaths expected this century

lowering nicotine in cigarettes to non- addictive levels

FDA

Comprehensive regulatory plan to shift trajectory of tobacco-related disease, death Smoking is the world's leading cause of preventable death

“Ultimately, we want to be in a position to stop

selling cigarettes entirely.”

  • - André Calantzopoulos,

Phillip Morris CEO, May 30, 2018.

World Health Organization (www.who.int) Foundation for a Smoke-Free World, Inc. (www.smokefreeworld.org)

British American Tobacco

to rapidly expand “next-gen products”

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Altria Group Inc.

Funding Partner, DehydraTECH Licensee

Leading nicotine industry participant Patented

  • ral-based

delivery technique

Altria Group

Leader in authorized, non-combustible, reduced-risk products.​

Lexaria Nicotine

Leader in unique alternate gastro-intestinal delivery methods for orally- administered products.

Product development for orally- administered nicotine formats Lexaria Nicotine

  • Majority-owned subsidiary of

Lexaria Bioscience,

  • Holds DehydraTECH license

rights for nicotine related use.

Altria Group

  • DehydraTECH licensee for oral &

non-combustible nicotine formats,

  • Ownership investment in Lexaria

Nicotine to fund further research.

Definitive Agreement signed January 15, 2019

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Completing the puzzle for Oral Nicotine Forms

Market need

FDA – comprehensive plan to reduce smoking

Collaborative Research

Altria Group & Lexaria Nicotine to conduct animal & human studies

Altria Group - Strategic Funding Partner

Initial Funding: US$1 million Milestone based: up to US$12 million

DehydraTECHTM

  • Altria Group has licensed DehydraTECH

to commercialize oral, non-combustible nicotine products,

  • Exclusive license in the United States,
  • Non-exclusive globally,
  • Royalty-based payment structure.
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DehydraTECHTM: In vivo research

Study of 12 lab rats over 6 hour period showed 560% more nicotine delivered into brain tissue

April 17, 2018

Study of 40 lab rats, with focus on initial 15 minute period after dosing.

August 7, 2018

70%

more nicotine

delivered overall within first 15 min of study (p=0.0004)

90%

more nicotine

delivered at 10 minute mark (p=0.044)

94%

more nicotine

delivered over the 60 min study period (p=0.0086)

179% gain in the quantity

  • f peak nicotine delivery

to the bloodstream relative to controls

Speed of onset is of particular importance when considering non-inhalation nicotine delivery formats DehydraTECHTM delivered:

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Control DehydraTECH™ % Improvement

(10 mg/Kg) (10 mg/Kg)

Nicotine: Blood-Brain-Barrier Results

Significant nicotine absorption increase across the Blood-Brain Barrier into brain tissue:

40 lab rat test

Aug 7, 2018

Testing at

1, 4, 8, 24 hrs.

12 lab rat test

Apr 17, 2018 Maximum Brain Concentration

(Cmax; ng/ g)

427 ± 66.5 1,260 ± 200 295% Maximum Brain Concentration

(Cmax; ng /g)

51.8 ± 30.4 290 ± 197 560%

Time to Cmax 4 hours 1 hour 400%

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Total Quantity in Brain Tissue

(AUC; hr·ng/g)

5,881 ± 538 12,999 ± 1252 221%

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Key Executives

Serial entrepreneur involved in several private and public companies since the late 1980’s, Extensive experience in the capital markets, corporate governance, M&A and finance.

Experienced executive in the pharmaceutical and bioscience sectors, Specialist in development of drug delivery technologies, Former President and COO of Helix BioPharma Corp. (TSX: HBP). Named inventor on multiple issued and pending patents. M.Sc. in pharmacology and B.Sc. in toxicology from the University of Toronto.

U.S. licensed patent attorney, Doctorate in Neuroscience (with concentrations in Pharmacology and Physiology), Over 15 years of experience providing patent services to clients that have ranged from small start- ups to some of the world’s largest pharmaceutical and biotechnology companies. Co-Director for the Centre for Heart, Lung and Vascular Health, Canada, Research Chair in Cerebrovascular Physiology and Professor, School of Health and Exercise Sciences, Faculty of Health and Social Development at the University of British Columbia.

Chris Bunka Chairman & CEO John Docherty, M.Sc. Director & President

  • Dr. Edward Ergenzinger

Chief Legal, SVP Innovation

  • Dr. Philip Ainslie

Advisor

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Investor Presentation

Corporate Information

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One year stock chart – OTCQX:LXRP

Chris Bunka John Docherty Alex Blanchard

CEO President Manager Corp. Comm & IR 250 765 6424 905 439 5423 778 796-1897 Cbunka@lexariabioscience.com Jdocherty@lexariabioscience.com Ablanchard@lexariabioscience.com

Trading symbol: LXX:CSE, LXRP:OTCQX Shares o/s: 77 m Fully diluted: 86 m Recent price: C$1.90 / US$1.40 Insider ownership: 15m (20%) Fiscal year-end: August 31 Cash on hand (May ‘18) US$ 2M Recent financing (Oct ‘18) US$1.5M (US$1.60/unit)