JAGX share price increased over 55% intraday: why it happened

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  • Jaguar Health Inc’s (NASDAQ: JAGX) share price rose more than 55% during intraday trading. That’s why it happened.

Jaguar Health Inc’s (NASDAQ: JAGX) share price rose more than 55% during intraday trading, rising from a previous close of $ 1.60 to $ 2.48 during a high of the day at 12 p.m. ET. Investors are responding to the company’s announcement that it has entered into a binding terms agreement for a third non-dilutive royalty financing transaction, under which Jaguar would sell to the lender for an aggregate purchase price of $ 5 million. dollars – a royalty interest in potential future crofelemer (Mytesi) sales for the proposed indication related to COVID in long-haul patients for whom the company is currently exploring the path of a conditional marketing authorization in the European Union.

Jaguar plans to use the proceeds of the proposed transaction to support regulatory activities associated with its development pipeline, including supporting the crofelemer development program for the prophylaxis and / or symptomatic relief of inflammatory diarrhea, initially to be investigated in a long-haul COVID-19 recovering patient population. This $ 5 million royalty financing transaction follows a $ 6 million royalty transaction concluded in October 2020 and a $ 6 million royalty transaction concluded in December 2020 with affiliates of the lender and is based on similar conditions to be described at closing.

Long-haul syndrome is a recognized disease in the United States where Congress has provided $ 1.15 billion in funding over four years to the National Institutes of Health to support research into the prolonged health consequences of the disease. infection with SARS-CoV-2, the virus that causes COVID-19[FEMININE[FEMININE

And Mytesi (crofelemer delayed-release tablets), the only oral herbal prescription drug approved under FDA botanical guidelines, is a new, first-class anti-secretory agent that has a basic normalizing effect topically on the body. intestine, and this mechanism of action has the potential to benefit multiple disorders. Mytesi is a non-opioid chloride ion channel modulating antidiarrheal drug approved in the United States by the FDA for the symptomatic relief of non-infectious diarrhea in adults with HIV / AIDS on antiretroviral therapy.

KEY QUOTES:

“We are very pleased to have entered into this binding terms agreement for additional non-dilutive funding of $ 5 million to fund pipeline opportunities for crofelemer (Mytesi). We believe the proposed COVID-related indication of crofelemer has the potential to gain expedited conditional approval under an emergency review – particularly in the EU, based on the Agency’s stated requirements European Medicines Agency (EMA). “

“The COVID-related indication is the initial indication to be pursued by Napo EU, the exclusive target of the special-purpose acquisition company Dragon (the ‘Dragon SPAC’), which is expected to be listed on AIM Italia. We plan to release additional updates regarding Napo EU next week. “

– Lisa Conte, Founder, President and CEO of Jaguar

Disclaimer: This content is intended for informational purposes. Before you make an investment, you need to do your own analysis.

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