Media Coverage

Stock deal may fuel Jaguar M&A plan


Jun 09, 2016 - Animal Pharm

By Joseph Harvey
Animal Pharm News
June 9, 2016


US company Jaguar Animal Health is exploring M&A strategies to further develop its early-stage business.

Since February, Jaguar and Napo Pharmaceuticals have been "engaged in exploratory discussions regarding a potential merger and/or other ways to cooperate with their respective business endeavors".

Napo owns 26.3% of Jaguar's outstanding shares. Last month, Napo took over ownership of the new drug application and commercial rights for human applications of crofelemer from Valeant Pharmaceuticals International. Jaguar is developing crofelemer in the veterinary sector.

To aid any future M&A or business development, Jaguar has agreed a $15 million common stock purchase agreement with Chicago-based institutional investor Aspire Capital Fund.

The firm's president and chief executive, Lisa Conte, added: "We expect that this agreement may serve as an important asset as Jaguar continues discussions regarding potential business development and M&A activity."

Upon execution of the deal, Aspire purchased 222,222 shares of Jaguar common stock for $500,000. Jaguar has the right to sell the remaining $14.5m of its common stock to Aspire under the terms of the agreement. This extra purchase may happen over a 30-month period at prices based on prevailing market prices at the time of each sale.

The agreement also provides San Francisco-headquartered Jaguar with the ability to support ongoing clinical activities and the commercialization of its gastrointestinal product pipeline.

In April, Jaguar filed its first financial results – the firm's initial product Neonorm Calf generated revenue of $258,000 in 2015. Neonorm Calf is a non-prescription, enteric coated bolus for the support of gut health in preweaned dairy calves and was launched in October 2014. Jaguar is currently developing the Neonorm line for other species as well, including cows and horses – it is currently in the process of launching Neonorm Foal.

Reprinted with permission of Animal Pharm News

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