Jaguar Health shares slide in premarket on profit-taking after tripling on supply deal

Shares of Jaguar Health Inc (NASDAQ:JAGX) fell in the premarket on Wednesday in apparent profit-taking after the company’s stock more than tripled in the previous session after it signed a distribution, license and supply agreement with Knight Therapeutics Inc of Canada.

The agreement grants Knight the exclusive right to commercialize Jaguar’s Mytesi to treat noninfectious diarrhea and related products in Canada and Israel. The deal also allows a right of first negotiation to commercialize Mytesi and related products in some Latin American countries.

Shares of Jaguar Health in New York fell 16.67% to $1.40 in the premarket on Wednesday, having settled on Tuesday up by 158.46% at $1.68.

Mytesi is an FDA-approved product in the US indicated for the symptomatic relief of noninfectious diarrhea in adult patients with HIV/AIDS on antiretroviral therapy (ART).

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Jaguar is also pursuing possible follow-on indications for Mytesi in cancer therapy-related diarrhea (CTD), an important supportive care indication for patients undergoing cancer treatment; for rare disease indications for infants and children with congenital diarrheal disorders and short bowel syndrome (SBS); for irritable bowel syndrome (IBS); for supportive care for inflammatory bowel disease (IBD); and as a second-generation anti-secretory agent for use in cholera patients.

Under the terms of the agreement, Knight will be responsible for all regulatory and commercial activities for Mytesi and related products in the licensed territories.

Upon achievement of certain regulatory and sales milestones defined, Jaguar may receive payments from Knight Therapeutics in an aggregate amount of up to $18,019,743 which would be based on the September 23, 2018, US dollar-Canadian dollar exchange rate which will be payable throughout the initial 15-year term of the agreement.

Knight is is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international market. It is based in Montreal, Canada. 

Jaguar Health is a commercial stage pharmaceuticals company focused on developing novel, sustainably derived gastrointestinal products. the company is based in San Francisco. 

Story by ProactiveInvestors