SAN FRANCISCO - Jaguar Health, Inc. (NASDAQ:JAGX) has entered into a five-year exclusive in-license agreement with Venture Life Group PLC for the commercialization of Gelclair, an FDA-approved treatment for oral mucositis, in the United States. The company announced its plans to launch Gelclair commercially in the third quarter of 2024, marking its expansion into cancer supportive care.
Oral mucositis, commonly known as "chemo mouth," is a frequent and debilitating side effect of cancer treatments such as chemotherapy and radiotherapy. The condition manifests as painful sores in the mouth, making it difficult for patients to eat, drink, and speak. According to a National Comprehensive Cancer Network task force, up to 40% of patients receiving chemotherapy develop oral mucositis, and the incidence rises to about 90% among those with head and neck cancers undergoing combined chemotherapy and radiotherapy.
Gelclair is designed to manage and relieve oral mucositis pain through its mechanical action of adhering to the mucosal surface of the mouth. Unlike other treatments, Gelclair does not numb the mouth and is reported not to cause stinging upon application.
Lisa Conte, Jaguar's president and CEO, highlighted the importance of Gelclair in supporting cancer patients' nutritional needs and ability to continue treatment without interruptions. The product is expected to provide rapid and long-lasting relief, potentially reducing the need for parenteral nutrition and opioid analgesics.
The economic impact of oral mucositis is significant, with incremental costs exceeding $17,000 for patients with head and neck cancer. The in-licensing of Gelclair is a strategic step for Jaguar as it awaits results from its Phase 3 OnTarget trial of crofelemer for chemotherapy-induced overactive bowel.
This move into the oncology supportive care market represents a diversification of Jaguar's portfolio, which has previously focused on gastrointestinal distress treatments. The company's expansion into this new area of care is based on a press release statement and aligns with the growing need for supportive treatments in oncology due to the severe side effects of targeted cancer therapies.
InvestingPro Insights
In light of Jaguar Health, Inc.'s recent strategic move to commercialize Gelclair for oral mucositis, a closer look at the company's financial health and stock performance provides additional context for investors. According to InvestingPro data, Jaguar Health has a market capitalization of $32.81 million. The company's revenue for the last twelve months as of Q4 2023 stands at $9.76 million, though it has experienced a decline in revenue growth of -18.36% during the same period. This could be a point of concern for investors as the company gears up for the commercial launch of Gelclair.
InvestingPro Tips suggest that Jaguar Health's stock trades with high price volatility, which may be attributed to its financial performance and market sentiment. Notably, the stock has seen a strong return over the last month, with a 17.14% price total return, indicating some recent positive momentum. However, the company does not pay a dividend to shareholders, which might be a consideration for income-focused investors. Analysts do not anticipate Jaguar Health to be profitable this year, and the company has not been profitable over the last twelve months, as reflected by a negative P/E ratio of -0.51.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide more comprehensive insights into Jaguar Health's performance and future outlook. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where they can access these valuable tips to inform their investment decisions.
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