Jaguar Health (NASDAQ:JAGX) stock is joining biopharmaceutical peers today in a massive rally. Although the company typically flies under the radar, JAGX stock is up nearly 150%. This news comes after announcing a new royalty agreement, and some exciting Covid-19 potential. So what do investors need to know now?
Importantly, Jaguar Health is a California-based biopharmaceutical firm focused on treating gastrointestinal conditions in animals and humans. And importantly, Jaguar Health largely focuses on commercial-stage medications.
Right now, the company focuses on two drugs. The first, Mytesi, has U.S. Food and Drug Administration approval for use in humans. Currently, Mytesi has approval specifically as an antidiarrheal treatment for adults with HIV/AIDS who are on antiretroviral therapies. However, Jaguar Health is hoping to expand the application of Mytesi to other sources of gastrointestinal upset. The second drug Canalevia is still in clinical stages, and focuses on treating chemotherapy-induced diarrhea in dogs.
So what has JAGX stock soaring today? Well, it looks like Mytesi is the source of the major rally. Earlier this morning, Jaguar Health announced it had signed a royalty agreement for Mytesi worth $6 million. As a result, the lender will receive twice the purchase price of future royalties of Mytesi. And most importantly, Jaguar Health will be able to use the proceeds to pursue more regulatory activity.
What do I mean? Investors should note that Jaguar Health is currently hoping to receive further FDA approval for Mytesi. The company is also betting on Mytesi as a treatment for cancer therapy-induced diarrhea.
What to Know About JAGX Stock
However, the story with Jaguar Health does not stop there.
Along with the major move in the share price today, it looks like the company is working to create a new story for itself. Jaguar Health announced that although it did receive shareholder approval for a reverse stock split, it will not effect one now. This could boost investor confidence, especially now that Jaguar Health has the funds to pursue regulatory actions, and expand the addressable market for Mytesi.
There is something else to note. Mytesi is actually a product of Napo Pharmaceuticals, a subsidiary of Jaguar Health that the company wholly owns. According to reports, Jaguar Health also wants to establish Napo EU as a subsidiary in Europe. Already, Napo EU is in talks with a blank-check company about coming public via reverse merger. But why does this matter? Napo EU is taking Mytesi and wants to focus on developing it as a treatment for patients dealing with long-term Covid-19 recovery.
Clearly, the story with JAGX stock has many twists and turns, and requires a bit of due diligence. However, with its 100%-plus move today, it is worth giving Jaguar Health a good look.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.