Business
Jaguar Health Secures Additional Capital Through Sale of Royalty Rights Related to Future Crofelemer and Lechlemer Revenue Stream
Transaction proceeds will be allocated to support the company's ongoing OnTarget pivotal Phase 3 clinical trial of crofelemer for prophylaxis of diarrhea in
About this update from Jaguar Health, Inc.
[{"type":"text","content":"Transaction proceeds will be allocated to support the company's ongoing OnTarget pivotal Phase 3 clinical trial of crofelemer for prophylaxis of diarrhea in adults receiving targeted cancer therapySAN FRANCISCO, CA / ACCESSWIRE / August 25, 2022 / Jaguar Health, Inc. (NASDAQ:JAGX) (\"Jaguar\" or the \"Company\"), today announced that the Company has entered into a royalty interest purchase agreement (the \"Agreement\") with Utah-based Streeterville Capital, LLC (\"Streeterville\"). Under the Agreement, Jaguar will immediately receive $4.0 million (the \"royalty purchase price\") in connection with the sale of a royalty interest to Streeterville entitling Streeterville to receive 3-fold of the royalty purchase price from future royalties on sales of crofelemer and lechlemer and certain up-front license fees and milestone payments from licensees and/or distributors, excluding any fees due to Jaguar from its crofelemer license for the European territory to Napo Therapeutics, S.p.A. (the \"Royalty Payment Amount\") and will pay interest on the Royalty Payment Amount at a rate of ten percent in annum until the same is paid in full. Royalty payments will initiate on January 1, 2024 and will involve minimum monthly payments.\"We are pleased to have executed this transaction with Streeterville during difficult capital market conditions,\" said Lisa Conte, Jaguar's president and CEO. \"This transaction follows two royalty-based deals Jaguar executed in 2020, both of which also involved allocating proceeds to progress our ongoing Phase 3 pivotal OnTarget trial of crofelemer for prophylaxis of cancer therapy-related diarrhea (CTD). In an environment where it is important to concentrate available resources on initiatives that offer the most potential near-term value, Jaguar is focused on two key development milestones that we expect to be transformative and value-creating within the next approximately 6 to 12 months with respect to turning core pipeline opportunities into important and tangible product opportunities. These initiatives include the completion of enrollment during the first half of 2023 for the OnTarget trial and the completion in 2022 of an investigator-initiated proof-of-concept study of crofelemer for short bowel syndrome (SBS), supporting the potential for reimbursed expanded patient access through programs in Europe in 20...