VANCOUVER, British Columbia, Nov. 24, 2014 (GLOBE NEWSWIRE) — A new study from Orrin Devinsky, MD, of the New York University School of Medicine, suggests that Cannabidiol (CBD) may radically reduce seizures in patients with epilepsy.
Dr. Devinsky administered cannabidiol to 23 patients with treatment-resistant epilepsy. Thirty-nine percent of the patients saw their seizure rates drop by more than 50%. Four patients (17%) had no seizures for the last month of treatment.
Lexaria (CSE:LXX) (OTCQB:LXRP) has acquired 51% of PoViva Corp, an innovative health company developing Cannabidiol (CBD)-infused products. Lexaria may increase its ownership position to 75% at a later date.
“Most CBD’s taste awful,” stated Lexaria CEO and Chairman Chris Bunka in an exclusive interview with Financial Press. “Marian Washington and Michelle Reillo – the two principals at PoViva – have developed patent-pending technology to bind CBD to a lipid. As well as enabling the body to process the CBDs more efficiently, this technology makes it taste much better.”
The first PoViva Tea by Lexaria will be a traditional black tea, which accounts for about 85% of all the tea consumed. Initially Lexaria will sell the CBD lipid-bound tea loosely – and then as the product line gets traction Bunka anticipates introducing flavored teas and tea bags.
In March, 2014 Lexaria entered into the medical marijuana market in Canada where it is legal federally. Its production license application is being reviewed by Health Canada.
“We continue to press for that license,” stated Bunka. “But we made an executive and board decision to build immediate value for the company pursuing opportunities in the hemp-based Cannabidiol (CBD) market – which does not require new licensing, laws or legislation.”
The Alternative Health sector is growing fast. A six year survey with 29,370 subjects monitored the adoption of “complementary and alternative medicine care professionals,” including “homeopathic, naturopathic, or herbalists.”
The study suggests that between 16.9 million and 18.5 million Americans are seeking an alternative health care professional at any given time.
“The US Department of Health has patented CBDs and claimed that they are beneficial in treating Parkinson’s, Alzheimer’s, Cancer, Cardio-vascular diseases and concussion,” stated Bunka. “An overwhelming body of research indicates that Cannabidiol has significant medicinal properties.”
Bunka sees Cannabidiol products as much more than a niche health market. There are many patients with Alzheimer’s and other diseases who don’t want to use marijuana.
Lexaria is planning to market its products to the 150 million daily tea drinkers in the United States. The market for CBDs is much larger than that of marijuana-users.
“We’re not changing focus, we’re sharpening it,” stated Bunka. “We are still in the same sector, but in a 100% legal part of it, which means we can produce foods that contain CBD and create short term cash flows for the company.”
Lexaria is in the process of launching a new e-commerce website and setting up a national distribution center, with 1-800 call ordering.
“Our marketing will include traditional media, direct marketing, and we also are building relationships with alternative health media outlets,” stated Bunka. “Some of these organizations have expressed interest in affiliate marketing campaigns so we are also exploring that.”
Bunka has a conservative approach to alternative medicine, including cannabis. The company has initiated a Responsible Marijuana Policy which states that Lexaria will not sell medical marijuana containing more than 0.3% THC to any medical marijuana patient under the age of 25.
Subsequent to Lexaria’s announcement, the College of Family Physicians of Canada created new guidelines that included the recommendation that medical marijuana in most cases would not be appropriate for patients under the age of 25.
Lexaria is currently investigating several popular food and drink sectors where its patent-pending lipid-binding Cannabidiol delivery system might prove effective. Lexaria has acquired a 3-year exclusive right to the patent-pending process to infuse CBD’s into all global markets outside of the USA.
The 2015 combined hot beverage markets of coffee and tea together, globally, is expected to be $69 Billion according to a report by Basu Majumder A., Bera B. and Rajan A.
According to the US Department of Health and Human Services Patent number 6,630,507, “Cannabidiol is particularly advantageous to use because it avoids toxicity that is encountered with psychoactive cannabinoids at high doses.”
Lexaria continues to pursue the Health Canada MMPR Licensed Producer status by way of its joint venture in Burlington Ontario with Enertopia Corp. Meanwhile Bunka is focussed on producing cash flows from new initiatives; including the CBD-sectors (like epilepsy treatment) derived from already-legal hemp.
According to the Center for Disease Control and Prevention, Epilepsy affects about 2 million people in the United States and accounts for $15.5 billion in direct costs and indirect costs.
Lexaria is currently trading at .09 with a market capitalisation of $3.1 million.
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