Jaguar Health Requests and Receives Hearing on Nasdaq Listing Compliance

Rhea-AI Summary

Jaguar Health, Inc. (JAGX) provides an update on its Nasdaq listing status, facing potential delisting due to low stock prices. The company has requested a hearing, and the stock will continue trading pending the appeal decision. Jaguar is working on data analysis for its Phase 3 OnTarget trial of crofelemer for cancer therapy-related diarrhea prevention.

Insights

Financial Analyst

When a company faces potential delisting from a major stock exchange like Nasdaq, it's a significant red flag for investors and stakeholders. The minimum bid price requirement serves as a benchmark for investor confidence and the financial stability of a company. Jaguar Health's stock price falling below this threshold indicates a potential lack of market confidence in the company's value and growth prospects.

In the short term, the appeal hearing provides a lifeline for Jaguar to maintain its listing, which can prevent further erosion of investor confidence. However, the consistent low bid price and the threat of delisting could deter new investments and lead to increased volatility in the stock price. Long-term implications include the need for Jaguar to implement a robust strategy to boost investor confidence, possibly through reverse stock splits, operational restructuring, or strategic partnerships.

Market Research Analyst

The pharmaceutical sector is highly competitive, with stringent regulatory requirements. Jaguar Health's focus on a plant-based prescription drug for cancer therapy-related diarrhea represents a niche market with potential for growth, given the increasing interest in plant-based therapies. However, the company's financial health, as indicated by its stock performance, suggests market skepticism about its capacity to capitalize on this niche.

Successful Phase 3 trial results could be a catalyst for stock price recovery and could help Jaguar regain compliance with Nasdaq's listing standards. However, the market will likely remain cautious until tangible outcomes, such as FDA approval and market adoption, are realized. The company's ability to communicate the value and efficacy of crofelemer to investors and the broader market is crucial during this period.

Medical Research Analyst

The preventative treatment of cancer therapy-related diarrhea is an area of unmet medical need. If crofelemer proves effective, it could improve the quality of life for patients undergoing cancer treatment and reduce the healthcare costs associated with managing side effects. The data from the pivotal Phase 3 OnTarget trial will be critical in determining the drug's efficacy and safety profile.

Investors will be keenly interested in the outcomes of this trial, as positive results could significantly impact Jaguar's valuation and its ability to secure a stable position in the market. However, the path to FDA approval is rigorous and uncertain and Jaguar's financial challenges may impact its ability to sustain the drug's development through to commercialization.

SAN FRANCISCO, CA / ACCESSWIRE / February 23, 2024 / Jaguar Health, Inc. (NASDAQ:JAGX) ("Jaguar" or the "Company") today provided an update regarding the status of its listing with The Nasdaq Stock Market LLC ("Nasdaq").

"Jaguar requested a hearing to appeal a potential delisting of the Company's securities from Nasdaq, and I'm pleased to report that a hearing has been scheduled, " said Lisa Conte, Jaguar's president and CEO. "The Company's common stock will continue to trade on Nasdaq under the symbol ‘JAGX' pending the ultimate decision of any appeal process, and Jaguar's board remains committed to taking all required steps to remain in compliance with Nasdaq's listing standards."

As previously reported, on May 10, 2023 Jaguar was notified by Nasdaq's Listing Qualifications Staff (the "Staff") that the bid price for the Company's common stock for the last 30 consecutive business days had closed below the minimum $1.00 per share required for continued listing on Nasdaq. The Company was granted a grace period until May 6, 2024, to regain compliance.

On February 15, 2024, the Company received a letter from the Staff indicating that as of February 14, 2024, the Company's common stock had a closing bid price of $0.10 or less for 10 consecutive trading days, subjecting the Company to the provisions of Nasdaq's "Low Priced Stocks Rule," and indicating Nasdaq's intention to delist the Company's securities from Nasdaq on February 26, 2024, unless the Company requests an appeal before the Nasdaq Hearings Panel (the "Panel").

There can be no assurance that the Company will obtain an extension period from the Panel within which to regain compliance.

OnTarget Study Results
"We continue to work diligently to complete the comprehensive analysis of the data from our pivotal Phase 3 OnTarget trial of our novel plant-based prescription drug crofelemer for the follow-on indication of the preventative treatment of cancer therapy-related diarrhea."

About Crofelemer
Crofelemer is plant-based, extracted and purified from the red bark sap of the Croton lechleri tree in the Amazon Rainforest. Jaguar Health family company Napo Pharmaceuticals has established a sustainable harvesting program, under fair trade practices, for crofelemer to ensure a high degree of quality, ecological integrity, and support for indigenous communities.

About the Jaguar Health Family of Companies
Jaguar Health, Inc. (Jaguar) is a commercial stage pharmaceuticals company focused on developing novel proprietary prescription medicines sustainably derived from plants from rainforest areas for people and animals with gastrointestinal distress, specifically associated with overactive bowel, which includes symptoms such as chronic debilitating diarrhea, urgency, and bowel incontinence. Jaguar family company Napo Pharmaceuticals focuses on developing and commercializing human prescription pharmaceuticals for essential supportive care and management of neglected gastrointestinal symptoms across multiple complicated disease states. Napo Pharmaceuticals' crofelemer drug product candidate is the subject of the OnTarget study, a pivotal Phase 3 clinical trial for preventive treatment of chemotherapy-induced overactive bowel (CIOB) in adults with cancer on targeted therapy. Jaguar family company Napo Therapeutics is an Italian corporation Jaguar established in Milan, Italy in 2021 focused on expanding crofelemer access in Europe and specifically for orphan and/or rare diseases. Jaguar Animal Health is a Jaguar tradename. Magdalena Biosciences, a joint venture formed by Jaguar and Filament Health Corp. that emerged from Jaguar's Entheogen Therapeutics Initiative (ETI), is focused on developing novel prescription medicines derived from plants for mental health indications.

For more information about:
Jaguar Health, visit https://jaguar.health
Napo Pharmaceuticals, visit www.napopharma.com
Napo Therapeutics, visit napotherapeutics.com
Magdalena Biosciences, visit magdalenabiosciences.com
Visit Jaguar on LinkedIn: https://www.linkedin.com/company/jaguar-health/
Visit Jaguar on X: https://twitter.com/Jaguar_Health
Visit Jaguar on Instagram: https://www.instagram.com/jaguarhealthcommunity/

Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements." 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.

CONTACT:
hello@jaguar.health
Jaguar-JAGX

SOURCE: Jaguar Health, Inc.

View the original press release on accesswire.com

FAQ

Why is Jaguar Health (JAGX) facing potential delisting from Nasdaq?

Jaguar Health was notified by Nasdaq's Listing Qualifications Staff that its common stock bid price closed below $1.00 per share for 30 consecutive business days, leading to a potential delisting.

What steps is Jaguar Health (JAGX) taking to remain listed on Nasdaq?

Jaguar has requested a hearing to appeal the potential delisting and is committed to complying with Nasdaq's listing standards. The stock will continue trading pending the appeal decision.

What is the status of Jaguar Health's (JAGX) common stock trading on Nasdaq?

Jaguar's common stock will continue to trade on Nasdaq under the symbol 'JAGX' while the company awaits the decision of the appeal process.

What is the significance of the OnTarget trial results for Jaguar Health (JAGX)?

Jaguar is conducting a comprehensive analysis of the data from its pivotal Phase 3 OnTarget trial of crofelemer for cancer therapy-related diarrhea prevention, highlighting the importance of this study for the company's drug development.

What is the deadline for Jaguar Health (JAGX) to regain compliance with Nasdaq's listing standards?

Jaguar was granted a grace period until May 6, 2024, to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share.

What action will Nasdaq take if Jaguar Health (JAGX) does not appeal the potential delisting?

Nasdaq intends to delist Jaguar's securities on February 26, 2024, if the company does not request an appeal before the Nasdaq Hearings Panel.

Is there a guarantee that Jaguar Health (JAGX) will receive an extension period to regain compliance with Nasdaq's listing standards?

There is no assurance that Jaguar will obtain an extension period from the Nasdaq Hearings Panel to regain compliance.

Who is leading the efforts at Jaguar Health (JAGX) to address the potential delisting?

Lisa Conte, Jaguar's president and CEO, is overseeing the company's actions to appeal the potential delisting and ensure compliance with Nasdaq's listing standards.