Business
Jaguar Health Enters Binding Term Sheet for $5 Million Non-dilutive Financing Transaction Involving Sale of Royalty Rights Related to Future Potential Crofelemer (Mytesi) COVID-related Indication Revenue Stream
No royalty payments due for 36 monthsPlanned COVID-related indication in long-hauler patients is the lead focus for crofelemer at Napo EU, the exclusive
About this update from Jaguar Health, Inc.
[{"type":"text","content":"No royalty payments due for 36 monthsPlanned COVID-related indication in long-hauler patients is the lead focus for crofelemer at Napo EU, the exclusive target of the planned Dragon SPAC, which is pursuing listing on AIM ItaliaCompany expects to provide additional updates regarding Napo EU next weekSAN FRANCISCO, CA / ACCESSWIRE / March 5, 2021 / Jaguar Health, Inc. (NASDAQ:JAGX) (\"Jaguar\" or the \"Company\") today announced that the Company has entered a binding agreement of terms (the \"Term Sheet\") for a third non-dilutive royalty financing transaction, pursuant to which Jaguar would sell to the lender for an aggregate purchase price of $5 million (the \"Royalty Purchase Price\") a royalty interest in future potential crofelemer (Mytesi®) sales for the proposed COVID-related indication in long-hauler patients (as defined below), for which the Company is currently exploring the pathway of conditional marketing authorization in the European Union.Jaguar 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, initially to be studied in a long-hauler COVID-19 recovery patient population (the \"COVID-related indication\"). 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.\"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),\" stated Lisa Conte, Jaguar's founder, president, and CEO.\"The COVID-related indication is the initial indication to be pursued by Napo EU, the exclusive target of the planned Dragon special purpose acquisition company (the \"Dragon SPAC\"), which is anticipated to be listed on AIM Italia. We expect to...