The FDA allowed the sale of certain smokeless tobacco products with a claim that they put users at lower risk than cigarettes
() (OTCMKTS:LXRP) said Thursday that it applauds the decision by the US Food and Drug Administration to authorize the marketing of certain oral nicotine products with a claim of reduced risk for the first time ever.
A statement from the FDA on Tuesday allowed for the sale of snus — smokeless tobacco pouches — produced by Swedish Match AB (OTCMKTS:SWMAY) with the claim that using them instead of cigarettes “puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”
The marketing was authorized through what the FDA called the modified risk tobacco product (MRTP) pathway.
Lexaria stock surged Thursday following the news, gaining 25% to C$0.94 on the CSE and nearly 24% to US$0.72 on OTC Markets.
The Kelowna, British Columbia-based company has its own technology, DehydraTECH, that has been shown in studies to enhance the absorption and performance of compounds, including nicotine, in ingestible products. It has had success in the CBD and hemp industry, and the company is working to develop a reduced-risk oral nicotine product as an alternative to smoking or vaping.
READ: Lexaria Bioscience tells investors its licensing agreement to build a reduced-risk nicotine product is progressing well
"Lexaria applauds this informed and forward-looking decision by the FDA to recognize improvements in delivery formats that are being made by industry," CEO Chris Bunka said in a statement. "Lexaria realized long ago that DehydraTECH could empower alternative nicotine product formats and as a result our delivery technology which is already patented in the US and patent pending around the world for enhanced oral nicotine delivery."
The company’s subsidiary Lexaria Nicotine LLC has a licensing agreement with Altria Group Inc () subsidiary Altria Ventures Inc that will pay royalties for the sale of any oral nicotine products made using DehydraTECH.
—Updated to include stock movement—
Contact Andrew Kessel at [email protected]
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