Jaguar Health (NASDAQ:JAGX) just shared some big news, and it appears that Wall Street is a little late to the party. In fact, even after the company confirmed a Jaguar Health SPAC merger, JAGX stock is still sinking. So what do you need to know now?
As a quick refresher, Jaguar Health is a biopharmaceutical company aiming to treat gastrointestinal conditions in humans and animals. Its leading drug Mytesi has approval from the U.S. Food and Drug Administration. Right now, Mytesi has approval as an antidiarrheal for individuals with HIV/AIDS. However, the company is also working to expand that approval to other conditions. This is largely where the long-term excitement in JAGX stock comes in.
However, there is another unique catalyst here. In addition to its main business, Jaguar Health also has a wholly owned Napo Pharmaceuticals subsidiary. Napo Pharmaceuticals in turn is developing Napo EU. This in-development subsidiary believes that Mytesi can work as an antidiarrheal for patients with long-haul Covid-19. As doctors around the world scramble to help these individuals, companies like Jaguar Health promising to help stand out.
Beyond the Mytesi component, Napo EU has also been in the spotlight thanks to SPAC merger talks. Today, those talks became more than rumors, as Jaguar Health confirmed its subsidiary would be coming public via reverse merger. Post Pandemic Recovery, a special purpose acquisition company from Swiss Growth Forum, is the SPAC in question. Investors also learned today that Napo EU will ultimately trade on the AIM Italia exchange.
What else should investors know? Swiss Growth Forum also shared today that a group of multinational investors has already sought interest of up to 70% in the offering. The SPAC sponsor may start accepting funds for the Post Pandemic Recovery deal next week.
JAGX Stock and the Napo EU SPAC Merger
Jaguar Health and JAGX stock have captivated investors over the last several weeks, and confirmation of the Napo EU SPAC merger is yet another good sign. The hope is that European regulatory agencies will soon latch onto Mytesi for long-haul diarrhea. At the same time, Jaguar Health continues to study its drug as an antidiarrheal for cancer therapy in the U.S. Plus, the company announced another important research milestone earlier in January. Now, Jaguar hopes to use plant-based lechlemer as a treatment for cholera-induced diarrhea.
But what does the SPAC merger news really mean for JAGX stock? According to InvestorPlace analyst Louis Navellier, it could be a very good thing. Writing prior to the merger announcement, Navellier said that many things make Jaguar Health stand out. While he likes that its treatments are all derived from plants, the SPAC connection has an extra sparkle. Given the confirmation, JAGX stock looks very promising.
Keep JAGX stock on your radar here. When Wall Street picks up on the SPAC merger news, shares could pick up.
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.