As a Result of the Merger, Jaguar Shows Positive Net Income for Q3
2017
SAN FRANCISCO--(BUSINESS WIRE)--Nov. 20, 2017--
Jaguar Health, Inc. (NASDAQ: JAGX) (Jaguar or the Company), a commercial
stage natural-products pharmaceuticals company focused on developing
novel, sustainably derived gastrointestinal products for both human
prescription use and animals on a global basis, announced that the
Company filed its first quarterly earnings report today since the merger
between Jaguar Animal Health and Napo Pharmaceuticals (Napo) became
effective on July 31, 2017. The report, filed on Form 10-Q with the U.S.
Securities and Exchange Commission (SEC), covers the third quarter of
2017. As stated in the 10-Q, Jaguar registered net income and
comprehensive income of approximately $4.75 million in third quarter of
2017.
Per the Company’s 10-Q, Jaguar’s total net revenue for the third quarter
of 2017 was $1.1 million, comprised of approximately $346,000 of revenue
for Mytesi®, approximately $82,000 of Neonorm™
product revenue, and approximately $655,000 of collaboration revenue.
Total net revenue for the third quarter of 2016 was approximately
$50,000, comprised solely of Neonorm™ product revenue.
Quarter over quarter, Jaguar’s total net revenue was approximately $1.0
million higher in 2017 than 2016.
Total net revenue for the nine months ending September 30, 2017 was
approximately $2.8 million, comprised of approximately $346,000 of Mytesi®
product revenue, approximately $236,000 of Neonorm™ product
revenue, and $2.2 million of revenue stemming from the collaboration
agreement between Jaguar and Elanco US Inc. Total net revenue for the
nine months ended September 30, 2016 was approximately $113,000.
“The third quarter of 2017 was the first period for which Jaguar
reported consolidated human and animal revenue and financial results.
Since the merger became effective July 31, 2017, there are only two
months of human-product revenue and financial results included in the Q3
earnings report we filed today and in our year-to-date financial
statements. The net income and comprehensive income figures listed in
the Q3 2017 earnings report are the result of tax consequences of the
acquisition of Napo by Jaguar, and are not an operational result that we
would expect to see repeated in the current quarter as we continue to
ramp up our sales and marketing efforts for Mytesi®. However,
Mytesi® sales are clearly benefiting from the meaningful
spend on marketing, advertising, medical education, and promotional
activities we’ve been able to put in place following the merger—in
addition to the efforts of our recently expanded team of highly
experienced HIV sales representatives,” Lisa Conte, Jaguar's president
and CEO, stated, “as evidenced by the fact that average monthly Mytesi®
sales increased 50% from August through October 30th of this year versus
the first seven months of 2017.”
As Jaguar announced on November 14, 2017 in a press release and during a
conference call, gross sales in August, September, and October of 2017,
were approximately $1.1 million for Mytesi® (crofelemer), the
first-in-class, FDA-approved anti-secretory human prescription drug
product of Napo, which is now Jaguar’s wholly-owned subsidiary. Napo’s
receipt of cash is based on gross sales, defined as cashflow from the
movement of product from our third-party logistics warehouse to
wholesalers. For the first seven months of 2017, Mytesi®
gross sales were $2.8 million. For interested individuals who were
unable to join the conference call, a replay of the webcast is available
on the investor relations section of Jaguar’s website (click
here) for 90 days following the call. Additionally, a dial-in replay
of the call is available through November 21, 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: 6593876.
GAAP Reported Mytesi® Revenues, Contrasted
with Operational Mytesi® Sales (a Cashflow
Activity)
The Company recognizes net Mytesi® revenue by
deducting allowances and medicaid charges from Mytesi® proceeds
when product moves from wholesalers to retail organizations. Gross
sales figures issued by the Company represent Mytesi® orders
placed by wholesalers with Jaguar’s third-party logistics warehouse
which generate invoiced sales and cashflow for Napo. As stated in the
third-quarter earnings report filed today by Jaguar with the SEC, which
only includes Mytesi® figures for the post-merger time period
of August and September of this year, Mytesi® revenue in
August and September totaled approximately $166,000 and $198,000,
respectively. For the month of October, 2017, Mytesi® revenue
totaled approximately $207,000.
Note Regarding Use of Non-GAAP Measures
Gross sales is used internally by management as an indicator of and to
monitor operating performance, including sales performance of Mytesi®,
salesperson performance, and product growth or declines. We believe that
the presentation of gross sales provides a closer to real-time useful
measure of our operating performance. Gross sales is not a measure that
is recognized under accounting principles generally accepted in the
United States of America (“GAAP”) and should not be considered as an
alternative to net sales, which is determined in accordance with GAAP,
and should not be used alone as an indicator of operating performance in
place of net sales. Additionally, gross sales may not be comparable to
similarly titled measures used by other companies, as gross sales has
been defined by our internal reporting practices. In addition, gross
sales may not be realized in the form of cash receipts as promotional
payments and allowances may be deducted from payments received from
certain customers.
Mytesi® is a prescription treatment for diarrhea that works
differently, by acting locally in the GI tract to normalize the flow of
water. Mytesi® does not have drug-drug interactions with ART,
does not affect GI motility, and has side effects that are similar to
placebo.
About Mytesi®
Mytesi® (crofelemer) is an antidiarrheal indicated for the
symptomatic relief of noninfectious diarrhea in adult patients with
HIV/AIDS on antiretroviral therapy (ART). Mytesi® is not
indicated for the treatment of infectious diarrhea. Rule out infectious
etiologies of diarrhea before starting Mytesi®. If infectious
etiologies are not considered, there is a risk that patients with
infectious etiologies will not receive the appropriate therapy and their
disease may worsen. In clinical studies, the most common adverse
reactions occurring at a rate greater than placebo were upper
respiratory tract infection (5.7%), bronchitis (3.9%), cough (3.5%),
flatulence (3.1%), and increased bilirubin (3.1%).
More information and complete Prescribing Information are available at Mytesi.com.
Crofelemer, the active ingredient in Mytesi®, is a botanical
(plant-based) drug extracted and purified from the red bark sap of the
medicinal Croton lechleri tree in the Amazon rainforest. Napo has
established a sustainable harvesting program for crofelemer to ensure a
high degree of quality and ecological integrity.
About Jaguar Health, Inc.
Jaguar Health, Inc. is a commercial stage natural-products
pharmaceuticals company focused on developing novel, sustainably derived
gastrointestinal products for both human prescription use and animals on
a global basis. Our wholly-owned subsidiary, Napo Pharmaceuticals, Inc.,
focuses on developing and commercializing proprietary human
gastrointestinal pharmaceuticals for the global marketplace from plants
used traditionally in rainforest areas. Our Mytesi®
(crofelemer) product is approved by the U.S. FDA for the symptomatic
relief of noninfectious diarrhea in adults with HIV/AIDS on
antiretroviral therapy. Mytesi® is in development for
multiple possible follow-on indications, including cancer
therapy-related diarrhea; orphan-drug indications for infants and
children with congenital diarrheal disorders and short bowel syndrome;
supportive care for inflammatory bowel disease (IBD); irritable bowel
syndrome (IBS); and as a second-generation anti-secretory agent for use
in cholera patients. Canalevia™ is our lead animal
prescription drug candidate, intended for treatment of various forms of
diarrhea in dogs. Equilevia™ is Jaguar’s non-prescription
product for total gut health in equine athletes. Canalevia™
and Equilevia™ contain ingredients isolated and purified from
the Croton lechleri tree, which is sustainably harvested. Neonorm™
Calf and Neonorm™ Foal are Jaguar’s lead non-prescription
animal products. Mytesi®, Canalevia™, Equilevia™
and Neonorm™ are distinct products that act at the same last
step in a physiological pathway generally present in mammals.
For more information about Jaguar, please visit jaguar.health.
For more information about Napo, visit napopharma.com.
Forward-Looking Statements
Certain statements in this press release constitute “forward-looking
statements.” These include statements regarding planned, potential
follow-on indications for Mytesi®. In some cases, you can
identify forward-looking statements by terms such as “may,” “will,”
“should,” “expect,” “plan,” “aim,” “anticipate,” “could,” “intend,”
“target,” “project,” “contemplate,” “believe,” “estimate,” “predict,”
“potential” or “continue” or the negative of these terms or other
similar expressions. The forward-looking statements in this release are
only predictions. Jaguar has based these forward-looking statements
largely on its current expectations and projections about future events.
These forward-looking statements speak only as of the date of this
release and are subject to a number of risks, uncertainties and
assumptions, some of which cannot be predicted or quantified and some of
which are beyond Jaguar’s control. Except as required by applicable law,
Jaguar does not plan to publicly update or revise any forward-looking
statements contained herein, whether as a result of any new information,
future events, changed circumstances or otherwise.
Jaguar-JAGX
View source version on businesswire.com: http://www.businesswire.com/news/home/20171120005665/en/
Source: Jaguar Health, Inc.
Jaguar Health, Inc.
Peter Hodge
phodge@jaguar.health
