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 in Q4 2020
SAN FRANCISCO, CA / ACCESSWIRE / 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 of 2020.
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 the 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.
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