It could be said that special purpose acquisition companies (SPACs) have been all the rage lately. Yet, they’re not always in the biotech sector. If you’d like to consider an interesting biopharma SPAC, Jaguar Health (NASDAQ:JAGX) is worth checking out and JAGX stock could be just what you’re looking for.
This is a stock that has made some serious moves lately. Not long after the market caught wind of Jaguar Health’s value proposition, the JAGX stock price shot higher.
Yet, that’s not the end of the tale. There was a pullback recently in the JAGX stock price, presenting an opportunity for folks who didn’t want to chase the stock on the way up.
That’s an understandable policy. So now, prospective shareholders should learn as much as possible about JAGX stock before taking a position. That can start with a closer look at the price trajectory of the stock.
JAGX Stock at a Glance
Sometimes, traders worry about a stock that trades on the Nasdaq Exchange when it stays under $1 per share. That’s because the Nasdaq has been known to sometimes de-list stocks trading below $1 for an extended period of time.
This may have been a concern with JAGX stock because it traded below $1 throughout much of 2020. Fortunately, the stock was not de-listed from the Nasdaq Exchange.
The bulls really showed some signs of life in December of last year as they pushed JAGX stock from 34 cents to $1.07 in the middle of that month.
A partial retracement of that price spike followed. The bulls then took back control and propelled JAGX stock all the way up to a 52-week high of $4.47 in early January.
Over the next couple of weeks, JAGX stock backed off of the $4 level and settled comfortably at $3 and change. As a result, JAGX shareholders can be confident that the stock is probably safe from any de-listing threat for the time being.
A Unique Biopharma Company
Before we delve into the SPAC angle of Jaguar Health, it’s worthwhile to examine the company’s unique positioning in the biotechnology space.
Of course, there are other companies competing to address health issues related to Covid-19. However, Jaguar Health’s main product, Mytesi, sets the company apart in a couple of different ways.
Specifically, Mytesi could potentially work as an anti-diarrheal treatment for “long haulers,” or patients with long-term Covid-19 symptoms.
That’s not a medical issue that’s often discussed among stock traders. Many people are solely focused strongly on vaccines for Covid-19. Yet, what Mytesi could potentially treat is an important issue that’s worth pursuing.
On top of that, Mytesi is a plant-based medicine. In fact, it’s the only oral plant-based prescription medicine approved under U.S. Food and Drug Administration (FDA) Botanical Guidance, according to Jaguar Health.
SPAC Merger Looks Likely
The plant-based angle adds value to JAGX stock. However, prospective investors should also take note of a significant upcoming meeting.
Reportedly, Jaguar Health’s wholly owned subsidiary, Napo Pharmaceuticals, is discussing enacting a SPAC merger to take anticipated subsidiary Napo EU public.
On Jan. 27, Jaguar Health plans to host a webcast meeting to discuss this proposed SPAC merger. It’s entirely possible that a game-changing announcement could be made at that virtual meeting.
For the time being, it’s probably best to call the SPAC merger “proposed” rather than “definite” since is hasn’t happened yet. Nevertheless, it appears that the merger is likely to happen.
As SPAC sponsor Andreea Porcelli explains:
Napo EU and the Post Pandemic Recovery Equity SPAC are pursuing a ‘Direct Business Combination’, which is allowed on the Professional Segment of AIM Italia, hence making the listing of the proposed SPAC and merger concurrent.
Clearly, the chief stakeholders appear ready to move forward with the SPAC merger. Perhaps a formal announcement during the meeting will solidify the details while offering the JAGX stock bulls something to be excited about.
The Takeaway
There’s been a big surge in the JAGX stock price, but there’s also been a retracement.
With the SPAC connection and Jaguar Health’s unique niche positioning, JAGX stock looks promising at the current price point.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
