Jaguar Health has decided to develop and commercialize Crofelemer for the treatment of COVID-19 recovery patients suffering from long-term diarrhea. The study is planned to begin in Europe.
Jaguar Health, Inc. (JAGX) stock is on a roll today after the company along with its wholly-owned subsidiary, Napo Pharmaceuticals announced that they are planning to develop and commercialize their novel proprietary drug, Crofelemer. This drug will be developed for the COVID-19 recovery patients that are suffering from inflammatory diarrhea or prophylaxis.
JAGX stock is skyrocketing on the initiation update of Crofelemer. The stock opened the trading at $0.21 and is currently trading at $0.36 continuing to soar by almost 74%. The trading volume is high at 90 million compared to the average volume of 6.4 million, as we write this.
Jaguar and Napo are planning to begin the study on a ‘long-hauler’ COVID-19 recovery patient population in Europe.The novel proprietary drug, Crofelemer, will indicate the symptomatic relief of inflammatory diarrhea that will be studied in the clinical testing.
The increasing COVID-19 cases have brought worse things to people as coronavirus patients are suffering from different issues. One of the major symptoms for COVID-19 patients is long-term diarrhea or other gastrointestinal disfunctions.
At the moment, the company is in talks with the Swiss Growth Forum on the potential merger of SPAC with an operational subsidiary of the Company. The subsidiary will be located in Europe that will have an exclusive license for developing and commercializing crofelemer and Mytesi®.
Based on the initial discussions, the company has reported that the agreement will include an upfront cash license fee of almost $2 million to $10 million to Napo. The cash payment will also include approximately $20 million for funding the European operation. It will also include equity ownership of 30%-49.5% for Napo in the European subsidiary, post-acquisition by the SPAC.
The agreement will also have other customary financial terms including transfer pricing and royalties upon the sale of crofelemer and Mytesi in Europe.
The “long-hauler” project is specifically associated with COVID-19 patients who have symptoms which may include diarrhea, pain, constipation, brain fog, cardiovascular effects, fatigue, and arthritis. The study will be based on solving patient problems having these symptoms.
Napo has already completed the intellectual property filings for the development of Crofelemer. With the indications of potential long-hauler project, the company is focused on IP protection.
Jaguar and Napo have defined the endpoints for the study before they commercialize their product for COVID-19 patients. The primary endpoints include prophylaxis, gut biome restoration, and reduction in inflammatory gut markers and viral fecal shedding.
