Full Press Release Details
Jaguar Health Signs Agreement for Non-dilutive
Financing Transaction Involving the Sale of Royalty Rights Related to Future Mytesi (Crofelemer) Revenue Stream for $5 Million,
with Possible Future Tranches in 2021, Totaling $16 Million
Proceeds Will Be Allocated to Support
Regulatory Activities Associated with the Company's Development Pipeline, Including Funding the Pivotal Clinical Trial
for Mytesi for Cancer Therapy-Related Diarrhea (CTD)
Pivotal CTD Trial Expected to Initiate
San Francisco, CA (October 1, 2020): Jaguar Health, Inc.
(NASDAQ: JAGX) ("Jaguar" or the "Company") today announced that the Company has signed an 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 $5 million (the "Royalty Purchase Price") a royalty interest entitling
the Lender to receive 2.0x the Royalty Purchase Price of future royalties on sales of Mytesi (crofelemer) and certain
up-front license fees and milestone payments from licensees and/or distributors (the "Royalty Repayment Amount"). Upon
mutual agreement, the parties may agree to consummate additional royalty financings of $5 million and $6 million in February 2021
and July 2021, respectively, for a total of $16.0 mm.
Jaguar intends to use the proceeds to support regulatory activities
associated with the Company's development pipeline, including funding the pivotal clinical trial for Mytesi (crofelemer)
for the proposed indication of cancer therapy-related diarrhea (CTD). The CTD trial is expected to initiate in the fourth quarter
The agreement is binding subject to certain closing conditions.
"We are very pleased to have this option for non-dilutive
funding to fulfill our strategic planning to fund the pipeline opportunities for Mytesi, a transaction which does not result in
any dilution of our shareholders," Lisa Conte, Jaguar's president and CEO, commented. "The strength in the growth
in sales of Mytesi for the current indication of HIV-related diarrhea provides basis for this important financial opportunity.
We may consider entering into similar agreements in the future and of course business development relationships as additional sources
of non-dilutive funding."
Mytesi is a non-opiate, plant-based, chloride ion channel modulating
antidiarrheal medicine that is FDA approved for the symptomatic relief of noninfectious diarrhea in adult patients with HIV/AIDS
receiving antiretroviral therapy. The only oral plant-based prescription medicine approved under FDA Botanical Guidance, Mytesi
has a novel mechanism of action that works locally in the gut by gently and effectively modulating and normalizing the flow of
water and electrolytes with minimal systemic absorption.
About Jaguar Health, Inc. and Napo Pharmaceuticals, Inc.
Jaguar Health, Inc. is a commercial stage pharmaceuticals
company focused on developing novel, plant-based, non-opioid, and sustainably derived prescription medicines for people and animals
with GI distress, specifically chronic, debilitating diarrhea. Our wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses
on developing and commercializing proprietary plant-based human gastrointestinal pharmaceuticals from plants harvested responsibly
from rainforest areas. Our Mytesi (crofelemer) product is approved by the U.S. FDA for the symptomatic relief of
noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy and the only oral plant-based prescription medicine approved
under FDA Botanical Guidance.
For more information about Jaguar, please visit https://jaguar.health.
For more information about Napo, visit www.napopharma.com.
Mytesi (crofelemer) is an antidiarrheal indicated
for the symptomatic relief of noninfectious diarrhea in adult patients with HIV/AIDS on antiretroviral therapy (ART). Mytesi
is not indicated for the treatment of infectious diarrhea. Rule out infectious etiologies of diarrhea before starting Mytesi .
If infectious etiologies are not considered, there is a risk that patients with infectious etiologies will not receive the appropriate
therapy and their disease may worsen. In clinical studies, the most common adverse reactions occurring at a rate greater than placebo
were upper respiratory tract infection (5.7%), bronchitis (3.9%), cough (3.5%), flatulence (3.1%), and increased bilirubin (3.1%).
More information and complete Prescribing Information are available
at Mytesi.com. Crofelemer, the active ingredient in Mytesi , is a botanical (plant-based) drug extracted and purified
from the red bark sap of the medicinal Croton lechleri tree in the Amazon rainforest. Napo has established a sustainable
harvesting program for crofelemer to ensure a high degree of quality and ecological integrity.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking
statements." These include statements regarding use of proceeds, the expectation that the CTD trial will initiate in the
fourth quarter of 2020, and the expectation that Jaguar may consider entering into similar agreements in the future and business
development relationships as additional sources of non-dilutive funding. In some cases, you can identify forward-looking statements
by terms such as "may," "will," "should," "expect," "plan," "aim,"
"anticipate," "could," "intend," "target," "project," "contemplate,"
"believe," "estimate," "predict," "potential" or "continue" or the
negative of these terms or other similar expressions. The forward-looking statements in this release are only predictions. Jaguar
has based these forward-looking statements largely on its current expectations and projections about future events. These forward-looking
statements speak only as of the date of this release and are subject to a number of risks, uncertainties and assumptions, some
of which cannot be predicted or quantified and some of which are beyond Jaguar's control. Except as required by applicable
law, Jaguar does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of
any new information, future events, changed circumstances or otherwise.
Source: Jaguar Health, Inc.