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10xStockPicks wrote a post · May 2 04:27

RGLS Was Acquired This Week, Next ESPR & LEXX Have Strong Acquisition Possibilities

🚀 2 Biotech Stocks With Explosive Upside Potential: One Targeting a Mega Squeeze, the Other Tackling a $100B Market
While big pharma grabs headlines, two lesser-known biotech companies — Lexaria Bioscience (LEXX) and Esperion Therapeutics (ESPR) — are quietly positioning themselves for dramatic upside. One is addressing the biggest delivery problem in a $100B+ drug market, the other is potentially on the verge of a massive short squeeze and strategic acquisition.
💥 Esperion Therapeutics (NASDAQ: ESPR)
$1 Stock Setting Up For A Mega Short Squeeze | Zacks #2 BUY | $8 PT
Esperion Therapeutics is one of biotech’s most asymmetric setups: FDA-approved therapies, 50% YoY revenue growth, and a clear profitability path — yet the stock trades at just $1/share with a market cap under $200M.
🔍 Why This Could Explode:
– ✅ High short interest (rumored 22M shares short, likely hedged with 18M 2026 warrants)
– ✅ Tiny float, 70% institutional ownership
– ✅ Real fundamentals: Two commercial drugs (NEXLETOL®, NEXLIZET®) with 93,000+ U.S. patients
– ✅ Milestones & Royalties: $130M from Otsuka expected this year, $460M more possible
– ✅ Global expansion: Canada, Australia, Israel, and more
– ✅ Blockbuster triple-combo therapy in pipeline
– ✅ Upcoming earnings (May 6) could confirm profitability or surprise with royalty ramp
📈 Analyst Targets: $7–$9 (600–800% upside). Cantor Fitzgerald just reaffirmed an $8 target, citing execution and milestone catalysts.
With a catalyst-rich calendar and short interest at dangerous levels, any surprise could ignite a vicious squeeze. This setup is rare — and it’s real.
🔬 Lexaria Bioscience (NASDAQ: LEXX)
Under-the-Radar Tech Enabler for the $100B+ GLP-1 Market
Lexaria isn’t chasing GLP-1 drug development — it’s aiming to fix how they’re delivered.
GLP-1 drugs like Ozempic and Mounjaro are exploding in popularity for weight loss and diabetes, but they come with major flaws: injection-only options and high discontinuation due to GI side effects. Enter Lexaria’s DehydraTECH™, a patented oral delivery platform that could dramatically improve bioavailability and reduce side effects.
💡 Strategic Timing:
– Pfizer just abandoned its oral GLP-1 program after liver concerns.
– Eli Lilly’s oral GLP-1 (orfoglipron) showed promise — but still had 13–26% GI side effects.
– Lexaria has already tested its tech on semaglutide (Novo Nordisk) and tirzepatide (Eli Lilly) in humans, reporting enhanced delivery and reduced side effects.
📃 Commercial Interest is Brewing:
– Signed a Material Transfer Agreement with a major pharma partner (Sept 2024) — early-stage, but meaningful.
– GLP-1 drugs are expanding into chronic kidney disease, obesity, Alzheimer’s, and even addiction.
– Lexaria’s DehydraTECH could become essential IP for any oral GLP-1 candidate seeking fewer side effects and better absorption.
⚙️ Lexaria holds 48 patents, runs its own lab, and is quietly positioning as the tech behind the next-gen GLP-1 solutions. If just one pharma partner moves forward, the upside could be enormous.
🧠 Thoughts:
Lexaria and Esperion are two of the most intriguing biotech setups right now. One offers the potential for a massive short squeeze on strong fundamentals and milestone cash; the other could be an essential enabler in a multi-billion-dollar drug revolution.
With Lexaria targeting tech licensing in a booming market, and Esperion poised to profitably scale or be acquired, these $1 stocks could easily punch above their weight in 2025.
$Lexaria Bioscience (LEXX.US)$ 1.) Lexaria Bioscience Corp. (NASDAQ: LEXX)
Drug Delivery Disruptor Targeting the $100B+ GLP-1 Market: A High-Upside M&A Candidate
Initiating Coverage – May 2025
Analyst Summary: Lexaria Bioscience Corp. (NASDAQ: LEXX) is a deeply undervalued biotechnology innovator whose proprietary DehydraTECH™ drug delivery platform is increasingly positioned as a mission-critical solution for oral GLP-1 drugs, among other high-growth categories. In light of the exploding GLP-1 industry, serious delivery challenges, and Lexaria’s early human data suggesting enhanced delivery and reduced side effects, the company stands as a likely acquisition target — potentially at 20x its current valuation.
Company Snapshot
Ticker: LEXX
Price (as of May 1, 2025): $1.19
Market Cap: ~$12M
Sector: Biotechnology
Platform: DehydraTECH™ – Oral Drug Delivery Enhancement
Patents: 48 granted, with additional applications pending
Target Markets: GLP-1s (semaglutide, tirzepatide), CBD, nicotine, antivirals, hormones
Investment Highlights
🔹 1. GLP-1 Drug Market: A Historic Opportunity
The GLP-1 therapeutic category is undergoing explosive growth. These drugs, originally developed for diabetes, are now being approved and researched for weight loss, cardiovascular disease, chronic kidney disease (CKD), Alzheimer’s, addiction, and more. Novo Nordisk’s Ozempic® and Wegovy®, and Eli Lilly’s Mounjaro® and Zepbound®, are driving global headlines — and revenues.
Analysts forecast the GLP-1 market will eclipse $100 billion in annual revenue within the next several years, making it one of the most valuable drug classes in pharmaceutical history.
However, oral delivery remains the single biggest challenge. Pfizer recently abandoned multiple oral GLP-1 programs due to safety and liver toxicity concerns, while Eli Lilly’s oral candidate orfoglipron showed Phase 3 promise — but still came with significant side effects (up to 26% of patients experienced GI symptoms). These complications are more than tolerability issues — 47% to 64% of GLP-1 users discontinue treatment within 1–2 years, largely due to side effects.
🔹 2. Lexaria Is Positioned to Solve the GLP-1 Delivery Problem
Lexaria’s DehydraTECH™ platform has demonstrated in human testing the ability to enhance the oral delivery of both semaglutide (Novo Nordisk) and tirzepatide (Eli Lilly) — the leading GLP-1 molecules in use today. Even more significantly, the company reports a trend toward reducing gastrointestinal side effects, the top reason for patient dropout.
Lexaria’s technology may represent the missing link for the next generation of safe, effective oral GLP-1 therapies — a major unmet need that even Pfizer and Lilly have yet to fully overcome.
💡 DehydraTECH has the potential to become a platform of strategic importance to every major GLP-1 developer.
🔹 3. Big Pharma Interest Is Already at the Door
In September 2024, Lexaria signed a material transfer agreement with a large unnamed pharmaceutical company to evaluate DehydraTECH for potential licensing or partnership. This milestone, while early-stage, marks tangible industry validation of the technology.
Lexaria has also reported active testing on liraglutide (Victoza®), further expanding its GLP-1 pipeline footprint.
Given the stakes involved, the current pharma landscape suggests that a licensing deal or outright acquisition is not a matter of "if" but "when."
🔹 4. Platform Versatility Beyond GLP-1
While the GLP-1 opportunity is grabbing headlines, DehydraTECH is already showing broad application across other major drug categories:
– Cardiovascular drugs: Human testing for hypertension with encouraging BP-lowering results.
– Neurological treatments: Promising seizure-reduction performance in animal models vs. Epidiolex®.
– Oral nicotine: Faster onset and higher absorption shown in pilot trials.
– Antivirals and NSAIDs: Pipeline under active development.
With 48 patents granted worldwide, Lexaria owns a high-barrier, high-leverage platform that enhances delivery without altering the underlying molecule — a major plus for pharma partners seeking to repurpose or optimize existing compounds.
🔹 5. A $12M Valuation That Makes No Sense
Lexaria’s current market capitalization is under $15 million — an anomaly given its technology, IP strength, and alignment with multi-billion-dollar drug classes. If acquired at $20 per share, a realistic figure for a platform enabling GLP-1 drug delivery, that would represent a 2,000%+ return from today’s levels.
Put another way, Lexaria is priced like an option, but may offer real near-term catalysts that could revalue the company overnight.
Risks
– Still early-stage: Licensing or acquisition interest has not yet translated into commercial revenue.
– Data granularity: Some GLP-1 test results lack detailed public metrics.
– Regulatory uncertainty: No FDA-approved DehydraTECH-based drugs (yet).
– Capital constraints: As a pre-revenue biotech, Lexaria must manage its runway carefully.
Conclusion & Recommendation
Lexaria Bioscience is not just another micro-cap biotech — it's an overlooked, IP-rich company with a globally relevant technology targeting some of the biggest challenges in one of the fastest-growing drug classes of all time. Its DehydraTECH platform could become indispensable to the next generation of GLP-1 drugs, solving a critical commercial barrier: poor oral bioavailability and intolerable side effects.
With Big Pharma racing to find oral GLP-1 solutions, Lexaria may be one deal away from a transformational revaluation. At ~$1.20 per share, we view the stock as deeply undervalued, offering asymmetric upside potential.
✅ Investor Action:
We recommend investors consider adding a small, speculative position in LEXX to biotech or disruptive innovation portfolios. The stock offers a rare opportunity to invest at the ground floor of what could become a vital technology platform in a $100 billion+ market.
$1 Stock Setting Up For A Mega Short Squeeze. Zacks Rank #2 BUY $8 Target Average. Profitable Soon
$Esperion Therapeutics (ESPR.US)$ Esperion Therapeutics (NASDAQ: ESPR): The Biotech Sleeper Poised for a Mega Short Squeeze
Esperion Therapeutics (NASDAQ: ESPR) is setting up as one of the most asymmetric and explosive trades in biotech. With two FDA-approved therapies, growing revenue, strategic partnerships, and a clear path to profitability, ESPR is firing on all cylinders.
And yet... the stock still trades at just $1, with a market cap of $200 million—less than 1x projected 2025 sales.
🔥 This Setup Screams Short Squeeze
Here’s what makes this opportunity so rare:
✅ Heavily shorted stock
✅ Huge institutional ownership (~70%)
✅ Catalysts in motion (earnings, milestones, triple-combo)
✅ Undervalued with a market cap 1/3 of its realistic value
✅ Now—rumors that Armistice Capital is short 22 million shares
✅ Hedged with 18 million warrants expiring in 2026
This is textbook: short and suppress the float, hedge with long-dated warrants, and if a buyout comes? Pocket the spread.
But if retail or institutions start buying, and earnings or catalysts surprise?
That strategy collapses under its own weight.
🧠 Let's Talk Fundamentals
Esperion’s two commercial drugs—NEXLETOL® and NEXLIZET®—are the only FDA-approved non-statin oral LDL-lowering therapies with primary prevention labeling.
They’re already being used by over 93,000 patients in the U.S., with 50% YoY growth, and a clear path to capture 10% of the 8M-patient Ezetimibe market.
Ezetimibe
15–18%
None
NEXLETOL
25%
33%
NEXLIZET
45% avg
Yes
That’s not competition—it’s dominance.
📅 May 6 Earnings: Catalyst Incoming
Esperion reports Q1 earnings on May 6, 2025—and it could be the spark.
– Zacks ranks ESPR a #2 Buy
– Zacks expects the company to beat earnings
– Revenue is accelerating, costs are down, and milestone cash is incoming
If they confirm the path to profitability—or even surprise on royalties or international ramp—the squeeze begins.
💸 2025: Milestone-Packed
– $130M Otsuka milestone expected this year
– Up to $460M more in milestones + 15–30% royalties
– $300M milestone potential from Daiichi Sankyo
– Launches in Australia, New Zealand, Israel, and Canada
– Profitability projected this year
🔧 Insurance & Manufacturing Tailwinds
– Major payers are removing prior auth (Optum Rx drops PA in May)
– Manufacturing is 50% U.S.-based
– Daiichi Sankyo to take over global manufacturing—cutting cost, scaling supply
💊 Triple Combo Therapy: Blockbuster Potential
Esperion’s triple-combo LDL pill (under development) could reduce LDL by up to 65%, positioning it to become the strongest oral option on the market. Target market: $20B+ globally.
🧨 The Short Game Is Risky Now
Let’s be clear: if Armistice Capital is indeed short 22M shares, they’ve likely helped suppress the stock—hedged with 18M long-dated warrants expiring in 2026. That’s smart on paper…
…but deadly if this turns into a squeeze.
If earnings, milestone news, or M&A rumors surface while retail and institutions are buying? That hedge becomes worthless leverage. The pressure to cover could be unrelenting.
📈 Analyst Targets = 600–800% Upside
– Analyst PTs: $7–$9
– Cantor Fitzgerald reaffirmed $8, citing execution, milestone tailwinds
– That’s 600–800% upside from current levels
– 70% institutional ownership = little free float
🧨 Mega Squeeze Trigger Checklist
✅ High short interest
✅ Suppressed valuation
✅ Large warrant overhang (2026 expiration)
✅ Earnings catalyst in 5 days
✅ Revenue, partnerships, and profitability all trending up
✅ Analyst support
✅ Institutional backing
✅ Rumored M&A setup
🎯 I’m Long ESPR Before the Fireworks
This is the kind of setup you don’t get often: real fundamentals, massive upside, and a structural squeeze waiting to ignite.
At $1/share, Esperion has the same market cap it had before FDA approval, before commercial traction, and before royalty streams. The short thesis is crumbling.
If you own $PLUG or other speculative names, rotate into something with near-term catalysts, real cash flows, and explosive short covering potential.
RGLS Was Acquired This Week, Next ESPR & LEXX Have Strong Acquisition Possibilities
RGLS Was Acquired This Week, Next ESPR & LEXX Have Strong Acquisition Possibilities
List of stocks I own or trade > If You own $Plug Power (PLUG.US)$ I highly suggest you pick up some ESPR
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