What happened

Shares of Jaguar Health (NASDAQ:JAGX) are surging at Monday’s morning. The stock has increased over 55% during intraday trading and finally closed higher 36%. so, what happened?

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What look for

Jaguar Health on March 5,  announced that the company has entered a binding agreement of terms for a third non-dilutive royalty financing transaction. 

The transaction, Jaguar would sell to the lender for an aggregate purchase price of $5 million a royalty interest in future potential crofelemer (Mytesi) sales for the proposed COVID-related indication in long-hauler patients. The company is currently pursing conditional marketing authorization in the European Union.

This $5 million royalty financing transaction follows a $6 million royalty transaction consummated in October 2020 and a $6 million royalty transaction consummated in December 2020 with affiliates of the lender and is based on similar terms that will be outlined upon closing.

The company intends to use the proceeds from the proposed transaction to support regulatory activities associated with the Company’s development pipeline, including supporting the development program for crofelemer for the prophylaxis and/or symptomatic relief of inflammatory diarrhea.

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

- Said Lisa Conte, Jaguar’s founder, president, and CEO.

One of the big winners in biopharma companies

Jaguar Health is one of the big winners in biopharma companies. The company focuses on sourcing its ingredients responsibly from plants traditionally sourced from rainforest areas and developing novel, sustainably derived gastrointestinal products on a global basis.

Mytesi, the subject of this latest royalty financing deal, was approved in 2012 for patients with non-infectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. The oral plant-based prescription medicine was approved under FDA Botanical Guidance.

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