Jaguar Health, Inc. (NASDAQ:JAGX) has secured a renewal from the U.S. Food and Drug Administration (FDA) for the conditional approval of Canalevia-CA1, a drug specifically designed to treat chemotherapy-induced diarrhea (CID) in dogs. This extension, valid until December 21, 2025, allows Jaguar Health to continue marketing the medication while actively pursuing full FDA approval.
Canalevia-CA1, formulated as a crofelemer delayed-release tablet, received its initial conditional approval from the FDA in December 2021. This conditional status requires Jaguar Health to demonstrate ongoing progress toward providing "substantial evidence of effectiveness." According to Dr. Michael Guy, Jaguar's Vice President of Preclinical and Nonclinical Studies, the company is pleased with the FDA's decision, emphasizing the drug's importance for veterinarians and dogs suffering from CID.
The Impact of CID in Canine Cancer Treatment
CID is a frequent and debilitating side effect of cancer treatment in dogs, recognized as one of the three most common adverse reactions. Data from the American Veterinary Medical Association indicates that approximately 25% of dogs will develop cancer during their lifetime. Effective management of CID is crucial for maintaining the continuity and success of cancer treatment in canines.
Path to Full Approval
Jaguar Health has reached an agreement with the FDA regarding the design and execution of a clinical field study aimed at achieving full approval for Canalevia-CA1. The drug is currently available in the U.S. through major veterinary distributors, including Chewy. Canalevia-CA1 is unique as the only FDA conditionally approved oral, plant-based prescription treatment for CID in dogs, derived from the Croton lechleri tree. Jaguar Health underscores its dedication to enhancing the quality of life for animals undergoing cancer therapy.
Safety Considerations
Important safety information for Canalevia-CA1 advises against its use in dogs with known hypersensitivity to crofelemer. It is also recommended to rule out infectious causes of diarrhea before initiating treatment. The most commonly reported adverse reactions include decreased appetite, reduced activity levels, dehydration, abdominal pain, and vomiting.
Jaguar Health's Broader Developments
In addition to the Canalevia-CA1 renewal, Jaguar Health has reported a 16% increase in net revenue for Q2 2024, reaching $2.72 million. The company has also obtained new patents in Jordan and Hong Kong for the use of crofelemer in treating short bowel syndrome and related conditions. Furthermore, Phase 3 trial data suggests benefits of crofelemer for adult breast cancer patients experiencing diarrhea due to cancer therapy.
Financial Overview
While the FDA's renewal of Canalevia-CA1's conditional approval represents a positive step, investors should be aware of Jaguar Health's financial standing. With a market capitalization of $9.84 million, the company is considered a small-cap player in the pharmaceutical sector. Revenue for the last twelve months as of Q2 2023 was $10.19 million, but showed a decline of -7.89% over the same period. InvestingPro data indicates that Jaguar Health is "quickly burning through cash" and "operates with a significant debt burden," potentially impacting its ability to fund future R&D initiatives. Analysts do not anticipate the company to be profitable this year, aligning with an operating income margin of -308.15% for the last twelve months as of Q2 2023.
