Another day, another major move in Jaguar Health (NASDAQ:JAGX). So what is behind the latest trek higher? And what else do you need to know about red-hot JAGX stock?
Well, as a quick refresher, Jaguar Health is a biopharmaceutical company that focuses on treating gastrointestinal conditions in both humans and animals. Its lead drug Mytesi, which has U.S. Food and Drug Administration approval, works as an antidiarrheal in individuals with HIV/AIDS who take antiretroviral medications. However, as we have reported in recent weeks, Jaguar Health is looking to seriously grow.
But there is another catalyst moving JAGX stock now. Here is what you should know:
- Jaguar Health announced earlier this week that it is investigating lechlemer, a new plant-based drug candidate.
- According to a press release, the company launched preclinical studies through its subsidiary Napo Pharmaceuticals.
- Additionally, the National Institute of Allergy and Infectious Diseases has agreed to give preclinical support to Jaguar Health.
- This support includes NIAID contractors actually conducting a 28-day study of lechlemer in dogs. These contractors previously conducted 7-day toxicology and safety studies in dogs and rats.
- So what is the deal with lechlemer? Well, Jaguar Health believes it could relieve cholera-induced diarrhea.
- Importantly, lechlemer works very similarly to crofelemer, the active component of Mytesi.
- Jaguar Health currently has U.S. Food and Drug Administration approval for crofelemer as an antidiarrheal for individuals with HIV/AIDS who take antiretroviral medications.
- It is also believes crofelemer could relieve cancer therapy-induced diarrhea as well as coronavirus-induced diarrhea.
- Lastly, crofelemer is the component in Canalevia, its candidate for chemotherapy-induced diarrhea in dogs.
- However, Jaguar Health believes that while lechlemer and crofelemer are similar, lechlemer is less costly to produce.
- Because of this, the company is hoping to receive priority review from the FDA.
What to Know About JAGX Stock
So with JAGX stock up more than 40% today, what else do you need to know about this news? And why are preclinical trials for lechlemer so exciting?
Well, as Jaguar Health highlights in its press release, cholera affects a lot of people. In fact, there are between 3 million and 5 million reported cases every year, and at least 100,000 deaths from cholera annually. As diarrhea is one of the commonly reported symptoms, Jaguar Health is hoping its lechlemer plant-based drug could make a real difference.
Additionally, the lechlemer news comes at a pivotal moment for Jaguar Health. Will regulatory proceedings work out in its favor to expand Mytesi for cancer therapy-induced diarrhea? And what is happening with its subsidiaries Napo EU and Napo Pharmaceuticals? Right now, JAGX stock is hot because of a great deal of speculation. If everything works perfectly, European regulatory agencies could snap up crofelemer as a Covid-19 symptom treatment. And, Napo EU could find itself the target of a blank-check company.
For right now though, it is important to be cautious. Jaguar Health continues to heat up, but JAGX stock is moving higher on a lot of hope.
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.