Business
Jaguar Health Signs Second Agreement for $6 Million Non-dilutive Financing Transaction Involving the Sale of Royalty Rights Related to Future Mytesi (Crofelemer) and Lechlemer Revenue Stream
No royalty payments due for 18-24 monthsProceeds will be allocated to support regulatory activities associated with the Company's development pipeline,
About this update from Jaguar Health, Inc.
[{"type":"text","content":"No royalty payments due for 18-24 monthsProceeds will be allocated to support regulatory activities associated with the Company's development pipeline, including funding the recently initiated pivotal clinical trial for crofelemer (Mytesi®) for cancer therapy-related diarrhea (CTD), for which patient enrollment is progressingSAN FRANCISCO, CA / ACCESSWIRE / December 23, 2020 / Jaguar Health, Inc. (NASDAQ:JAGX) (\"Jaguar\" or the \"Company\") today announced that the Company has signed an agreement (the \"Agreement\") with a secured lender (the \"Lender\") for a non-dilutive royalty financing transaction, pursuant to which Jaguar would sell to the Lender for an aggregate purchase price of $6 million (the \"Royalty Purchase Price\") a royalty interest entitling the Lender to receive 2.0x the Royalty Purchase Price of future royalties of Mytesi® (crofelemer) and lechlemer and certain up-front license fees and milestone payments from licensees and/or distributors as well as any interest, fees, and charges in accordance with the terms set forth in the Agreement (the \"Royalty Repayment Amount\"), and to pay interest on the Royalty Repayment Amount at the rate of ten percent per annum until the same is paid in full.Jaguar intends to use the proceeds to support regulatory activities associated with the Company's development pipeline, including funding continued patient enrollment for the pivotal Phase 3 trial of crofelemer (Mytesi) for prophylaxis of diarrhea in adult cancer patients receiving targeted therapy (\"cancer therapy‑related diarrhea\" (CTD)), which the Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc. (Napo), initiated this past October. This $6 million royalty financing transaction follows an earlier $6 million royalty transaction consummated in October 2020 with an affiliate of the Lender.\"We are very pleased to have secured this additional $6 million to fund the pipeline opportunities for Mytesi, a transaction which does not result in any dilution of our shareholders and requires no royalty payments for at least 18 months and potentially as long as 24 months,\" Lisa Conte, Jaguar's president and CEO, commented. \"The timing of this transaction aligns well with the progress of the recently initiated pivotal Phase 3 trial for CTD, for which patient enrollment is progressing. The strength in the growth in sales...