Jaguar Health Inc. (NASDAQ:JAGX) and its wholly-owned subsidiary, Napo Pharmaceuticals Inc., have announced a development and commercialization plan for crofelemer. Crofelemer is the company’s proprietary drug for treating prophylaxis or/and symptomatic relief in inflammatory diarrhea that will initially be studied in a “long-hauler” coronavirus recovery patient population Europe.
Napo in discussions for a merger with SPAC
The company and Swiss Growth Forum, the sponsor of Post Pandemic Recovery Equity (SPAC) are engaging in initias discussions regarding a possible merger with the company’s expected European subsidiary. The subsidiary will have exclusive licenses to Mytesi® and crofelemer for indications of HIV-related diarrhea and inflammatory diarrhea. According to preliminary terms of engagement, Napo will receive an upfront license payment in cash of between $2 million and $10 million. It will also receive $20 million in backing for its European operation for pursuing crofelemer clinical development for the treatment of inflammatory diarrhea in coronavirus long-hauler patient population. Besides, Napo will receive equity ownership of between 30% and 49.9% after acquisition in the European subsidiary by SPAC. Other customary monetary terms include pricing transfer on Mytesi and crofelemer supply to the operation in Europe and royalties.
Jaguar management is on a roadshow currently with Swiss Growth Forum across Europe, looking for support for the expected European operation. The company has identified the operation as a Post Pandemic Recovery Equity SPAC target that Swiss Growth Forum is promoting.
Long-haulers experience gastrointestinal distress
The long-hauler COVID-19 patient population refers to coronavirus survivors suffering from symptoms that include gastrointestinal distress, brain fog, fatigue, cardiovascular effects, arthritis, and forgetfulness for long periods after recovery. In this case, the assumption is that the symptoms continue to persist because of the reaction of survivors’ immune system despite infection passing. Long-hauler syndrome is prevalent in young recovery patients and those that experienced asymptomatic/mild COVID-19.
Gastrointestinal inflammation manifests as diarrhea or chronic diarrhea, which is the most observable symptom that provides for early diagnosis of the syndrome. It is important to note that early diagnosis of COVID-19 syndrome can limit long-term illness burden in recovery patients.