Here at Insider Financial, we specialize in finding momentum BEFORE it happens. We look for bottoming patterns, breakouts, and catalysts that are likely to propel a small-cap higher. The latest small-cap biotech to pop on our radar with runner potential is Jaguar Health stock. In this article, we take a look at what is happening with the company and why we believe Jaguar Health stock is on its way back to $1.
Jaguar Health Stock
First up, here’s a little background info for those not familiar with Jaguar Health stock. 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.
Its wholly-owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary plant-based human gastrointestinal pharmaceuticals from plants harvested responsibly from rainforest areas. Jaguar’s 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.
The latest 8-K from the Jaguar Health stock is the news that the company entered into a manufacturing and supply agreement with Glenmark Life Sciences Limited. Glenmark will continue to serve as Napo’s manufacturer of crofelemer for use in Mytesi®, the Company and Napo’s human prescription drug product approved by the U.S. Food and Drug Administration, and for other crofelemer-based products manufactured by Napo or its affiliates for human or animal use. The term of the Agreement is approximately 2.5 years (i.e., until March 31, 2023) and may be extended for successive two-year renewal terms upon mutual agreement.
Canceling Convertible Preferreds
We like it when a company is being proactive and canceling convertible preferred stock to avoid dilution. Jaguar Health stock just did that. As a result of the reacquisition of all of the issued shares of Series A Convertible Preferred Stock and the conversion of all of the issued shares of each of the Series B Convertible Preferred Stock and Series B-1 Convertible Preferred Stock to Common Stock, there are no shares of Series A Convertible Preferred Stock, Series B Convertible Preferred Stock or Series B-1 Convertible Preferred Stock outstanding.
The company also reduced the total authorized number of shares of the capital stock of the Corporation by 5,524,926 shares, such that the total number of authorized shares of the Corporation shall be 204,475,074.
Furthermore, Jaguar stockholders’ equity as of September 2, 2020, is now above $5,000,000, which is the minimum stockholders’ equity requirement for initial listing on The Nasdaq Capital Market. Now, all the company needs to do is get the price over $1.
Back in May, Jaguar Health stock submitted the final major regulatory filing to support approval of its oral plant-based drug candidate Canalevia™ (crofelemer delayed-release tablets) to treat chemotherapy-induced diarrhea (CID) in dogs.
More than 230,000 dogs in the U.S. receive chemotherapy treatment for various cancers each year, and roughly one in four will experience diarrhea as a side effect of treatment. There currently is no FDA-approved anti-secretory prescription product to manage this debilitating diarrhea in dogs.
In addition to CID, Jaguar also is seeking conditional approval to market Canalevia for exercise-induced diarrhea (EID) in dogs. “We are leveraging many of the same major technical sections from our CID submission for the proposed EID indication.
Canalevia could be available under conditional approval to treat both CID and EID in the first half of 2021.
Why This Is Significant For Jaguar Health Stock
Jaguar Health stock’s Napo is pursuing the development of Mytesi to treat cancer therapy-related diarrhea in humans. Dogs undergoing chemotherapy are an important predictive model for crofelemer’s mechanism of action in humans experiencing diarrhea as a result of their cancer treatment. By undergoing the current study in dogs, Jaguar Health can use the data in upcoming human trials, which is huge.
In July, Napo completed the filing of the investigational new drug application (IND) with the U.S. Food and Drug Administration (FDA) for crofelemer (Mytesi®) for the planned indication of prophylaxis and symptomatic relief of diarrhea in adult patients with solid tumors receiving targeted therapy with or without standard chemotherapy (“cancer therapy‑related diarrhea” (CTD)). Lisa Conte, Jaguar’s president and CEO, stated:
“Many cancer patients on targeted therapy require drug holidays or dose reductions in their therapy due to diarrhea. Reducing frequency of watery stools will provide symptomatic relief of diarrhea and should allow better adherence to the therapeutic dosing of any targeted therapies, potentially leading to better clinical outcomes. We have learned from business development discussions with cancer drug manufacturers that adoption and continued use of targeted cancer therapies is directly related to the ability of patients to tolerate use of the therapies – highlighting the importance of supportive care drugs like Mytesi to help manage cancer treatment-related diarrhea in this patient population.”
For more info on Mytesi for HIV treatment, watch this interview with CEO Lisa Conte.
Jaguar Health Stock Bottom Line
Currently trading with a market cap of just $16 million, Jaguar Health stock is a low-float play that looks set to squeeze the shorts. With the company boosting shareholder’s equity, we expect the company to dropping pr’s to get the share price back above $1 for NASDAQ compliance purposes. The company is telegraphing its next moves. No reverse is coming. Jaguar Health stock will get to $1 on its merits. With the company trading at just 2.5x sales, Jaguar Health stock is a discount entry opportunity at current levels.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:JAGX or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.