Jaguar Health secures new patent for rare disease drug

Published 20/08/2024, 12:18 am
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SAN FRANCISCO - Jaguar Health, Inc. (NASDAQ:JAGX), a commercial stage pharmaceuticals company, has announced the issuance of a new patent by Hong Kong's Intellectual Property Department for the use of crofelemer, a plant-based prescription drug, in treating short bowel syndrome (SBS) and related conditions. This patent strengthens the company's intellectual property portfolio, which includes approximately 172 issued patents and around 61 pending applications.

The newly issued patent covers methods for treating SBS, bile acid diarrhea, and diarrhea following small intestine resection or gallbladder removal using crofelemer, which inhibits chloride-ion transport. This development is particularly significant for patients with SBS who often suffer from intestinal failure, requiring extensive parenteral nutrition, and face life-threatening complications such as severe chronic diarrhea, dehydration, metabolic disorders, and malnutrition.

Jaguar Health's subsidiary, Napo Pharmaceuticals, is currently supporting independent proof-of-concept studies for crofelemer in the treatment of SBS with intestinal failure and microvillus inclusion disease (MVID), an ultrarare congenital diarrheal disorder (CDD), across the US, EU, and Middle East/North Africa regions. The results of these studies are expected by the end of 2024 and throughout 2025.

Crofelemer, derived from the sap of the Croton lechleri tree in the Amazon (NASDAQ:AMZN) Rainforest, is the only oral plant-based prescription medicine approved under the FDA's Botanical Guidance. This approval process offers additional exclusivity due to the practical challenges in creating a generic equivalent.

Jaguar Health's family of companies, including Napo Pharmaceuticals and Napo Therapeutics, focuses on developing novel, sustainably sourced plant-based prescription medicines for gastrointestinal distress. Crofelemer is currently FDA-approved under the brand name Mytesi® for symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy.

The company's commitment to intellectual property protection and its support for clinical investigations reflect its efforts to provide early patient access to crofelemer for debilitating conditions like SBS and MVID in certain EU countries, following the region's guidelines.

This announcement is based on a press release statement from Jaguar Health, Inc., which outlines the company's latest patent acquisition and ongoing research initiatives.

In other recent news, Jaguar Health reported a 16% increase in net revenue for Q2 2024 compared to Q1 2024, totaling approximately $2.72 million. This represents a 2% increase from Q2 2023. The company's earnings call highlighted the successful Phase III OnTarget trial results of its drug crofelemer and the upcoming commercial launch of Gelclair for oral mucositis in October 2024. However, despite revenue growth, Jaguar Health reported a net loss of $8.8 million in non-GAAP recurring EBITDA for Q2 2024. The company is also preparing for the commercial launch of Gelclair in the oncology market and is working on expanding the label for crofelemer based on recent trial results. These are the recent developments at Jaguar Health.

InvestingPro Insights

As Jaguar Health, Inc. (NASDAQ:JAGX) continues to expand its intellectual property portfolio and advance its clinical studies, a look at the company's financial health and market performance is essential for investors. According to InvestingPro metrics, Jaguar Health operates with a modest market capitalization of $11.6 million. Despite the challenges, the company's gross profit margin remains high at nearly 80% for the last twelve months as of Q2 2024, showcasing the potential profitability of its core products.

InvestingPro Tips indicate that Jaguar Health is grappling with a significant debt burden and is rapidly depleting its cash reserves. This is particularly important as the company funds its ongoing research and development efforts. Additionally, the stock has experienced high price volatility, which may attract investors looking for speculative opportunities but also indicates a higher risk profile.

The company's valuation implies a poor free cash flow yield, suggesting that investors may be cautious about the company's ability to generate cash after capital expenditures. However, it's worth noting that Jaguar Health's liquid assets exceed its short-term obligations, providing some buffer against immediate financial pressures.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at: https://www.investing.com/pro/JAGX, which delve deeper into the company's financial nuances and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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