Jaguar Animal Health Inc (NASDAQ:JAGX)
Shareholders of Jaguar Animal Health Inc (NASDAQ:JAGX) and Napo Pharmaceuticals have now approved the merger of the two companies. The deal was first announced on March 8, 2017 when JAGX shares closed trading at $0.68. The following day JAGX shares gapped up to open at $1.03 and hit a high of $1.23 before closing back at $1.03. In the subsequent weeks JAGX shares continued to rise and hit around the $1.50 level. Then the sellers came in and by the end of June, JAGX shares were trading below $0.60 for weeks. Today, based on news of the merger approval, JAGX shares are up over 13% at 11:20 AM EST and trading around $0.75.
Lisa Conte, Jaguar’s president and CEO and Napo’s interim CEO stated “Today’s votes represent a pivotal development in the evolution of both companies. It is truly transformational for Jaguar Health to forward-integrate into an important revenue stream from Mytesi®, for which the company will hold unencumbered global rights and is pursuing multiple follow-on indications for various chronic gastrointestinal disorders. This merger speaks to the shared vision and persistence of the dedicated and talented team members at both Jaguar and Napo—some of whom have worked for more than 20 years to change the standard of care for gastrointestinal disease in humans and animals,”
Napo develops and commercializes gastrointestinal prescription products from plants used traditionally in rainforest areas. Jaguar Animal Health Inc. (NASDAQ:JAGX) develops and commercializes gastrointestinal products for companion animals, horses and production animals. Napo’s proprietary, patented gastrointestinal compound, crofelemer, is an anti-secretory agent sustainably harvested from the rainforest. The merger of the two companies will provide Jaguar with an important prescription revenue stream from sales of Mytesi™ (crofelemer 125mg delayed-release tablets), a Napo prescription product formerly known as Fulyzaq.
A replay of the webcast, in which management discusses the merger, will be available on the investor relations section of Jaguar’s website for the next 90 days. Also, a dial-in replay of the call will be available through August 4, 2017, at 844-512-2921 (U.S. Toll Free) or 412-317-6671 (International). Participants must use the following code to access the dial-in replay of the call: 4112552.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.