Business
Jaguar Health Secures Non-dilutive Capital Through Sale of Royalty Rights Related to Future Mytesi Revenue Stream
Transaction Proceeds Will be Allocated to Support Advancement of Regulatory Activities Associated with Jaguar's Pipeline, Including the Company's Lead Product
About this update from Jaguar Health, Inc.
[{"type":"text","content":"Transaction Proceeds Will be Allocated to Support Advancement of Regulatory Activities Associated with Jaguar's Pipeline, Including the Company's Lead Product Candidate, Crofelemer, for Cancer Therapy-related DiarrheaSAN FRANCISCO, CA / ACCESSWIRE / March 5, 2020 / 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 Iliad Research and Trading, LLC (\"Iliad\"). Under the Agreement, Jaguar will immediately receive $0.350 million in connection with the sale of a royalty interest to Iliad entitling Iliad to receive $0.500 million of future royalties on sales of Mytesi® (crofelemer) and certain up-front license fees and milestone payments from licensees and/or distributors. Royalty payments will initiate in six months and will involve minimum monthly payments.Jaguar's Mytesi (crofelemer) product is approved by the U.S. Food and Drug Administration for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. As previously announced, crofelemer is in development for the possible indication of symptomatic relief of cancer therapy-related diarrhea (CTD).\"We are pleased to have secured this transaction without any dilution of our shareholders,\" Lisa Conte, Jaguar's president and CEO, commented. \"Iliad and their affiliate, Chicago Venture Partners, L.P., have previously provided financing to Jaguar that has assisted funding important initiatives associated with the commercialization of Mytesi and the development of potential crofelemer pipeline indications. The capital Jaguar will receive as a result of this Agreement will extend our cash runway as we design the pivotal trial for CTD with a plan to initiate the trial in the second half of 2020. Based on FDA feedback, we are currently focused on revising the protocol, the informed consent, the statistical analysis plan, and other requirements for this pivotal clinical study. Royalty transactions such as the one we've just entered with Iliad provide an additional source of capital for the Company, and we may consider entering into similar agreements in the future to fund possible business development relationships and clinical trial implementation.\"About Jaguar Health, Inc.Jaguar Health, Inc. is a commercial ...