Jaguar Health (NASDAQ: JAGX) stock soared following the announcement that GEN will commercialize Jaguar’s crofelemer in Turkey and eight neighboring countries. GEN also pledged a $2 million investment in Jaguar stock at a 75% premium to the market value.
Jaguar Health (JAGX), a pharmaceutical company, has signed an exclusive license and commercialization agreement. The agreement inked with Turkish specialty pharmaceutical company Gen Ilac Ve Saglik Urunleri Sanayi Ve Ticaret, A.S. (GENIL.IS), covers Jaguar’s innovative plant-based, FDA-approved prescription drug crofelemer.
The agreement involves a $2 million investment by GEN in Jaguar stock at a 75% premium to the market price. It also includes payment of double-digit royalties to Jaguar on all finished crofelemer products sold in the licensed territory and transfer pricing terms for crofelemer supplied by Jaguar. This investment will result in GEN owning 6.7% of the shares of Jaguar common stock outstanding as of March 18, 2024.
The agreement covers Jaguar’s FDA-approved indication of crofelemer (trade name Mytesi®) for HIV-related diarrhea and all potential crofelemer follow-on indications. These include cancer therapy-related diarrhea, the subject of Jaguar’s placebo-controlled pivotal Phase 3 OnTarget trial, as well as the rare disease indications short bowel syndrome (SBS) and microvillus inclusion disease (MVID), and any other possible future human indications for crofelemer.
The agreement permits GEN to manufacture crofelemer finished product and market the drug for all the above-referenced indications in Turkey, Belarus, Ukraine, Azerbaijan, Uzbekistan, Kazakhstan, Turkmenistan, Russia, and Georgia. However, this is contingent on GEN obtaining regulatory approval for crofelemer for these indications in these countries.
Lisa Conte, Jaguar’s president and CEO, said,
“We are very happy about the commitment Jaguar and GEN have made to enter an exclusive license and commercialization agreement.”
She added,
“This initiative underscores Jaguar’s mission and common vision with GEN to provide patients around the world with access to prescription pharmaceuticals for essential supportive care and management of neglected symptoms across multiple complicated disease states such as cancer, SBS, and MVID.”
Jaguar Health (NASDAQ: JAGX) Stock Reaction
JAGX stock surged 15.97% to close at $0.08 on Wednesday. The traders had exchanged hands with 197,780,596 (197.78 million) shares compared to the average daily trading volume of 30.69 million.
