Jaguar Health Out-Licenses Botanical Schizophrenia Drug to Magdalena Biosciences

Jaguar Health Inc. (NASDAQ:JAGX) has announced an expansion of its out-licensing agreement with Magdalena Biosciences, Inc., a joint venture between Jaguar and Filament Health Corp. This expanded agreement will cover ethnobotanical expertise for developing a prescription drug compound derived from a specific medicinal plant, targeting schizophrenia and other psychotic disorders. The Botanical Drug Candidate shows promise due to its antipsychotic activity and a unique mechanism of action distinct from existing FDA-approved treatments.

Lisa Conte, Jaguar’s President and CEO, expressed satisfaction with the new arrangement. The amended license stipulates that Jaguar will receive 10% of upfront and milestone payments secured by Magdalena in any business partnerships concerning the Botanical Drug Candidate. Additionally, Jaguar will receive royalties on annual net sales if the drug receives FDA approval and is commercialized. The royalty rate will increase if sales exceed a specified threshold.

The U.S. market for schizophrenia treatments is projected to reach $8.06 billion by 2030, as per Market Research Future. Schizophrenia, a severe and chronic mental illness, affects about 1% of the U.S. population. Current treatments fail to help up to 34% of patients, highlighting the need for new therapeutic options. The Botanical Drug Candidate offers a new plant-based approach, potentially becoming the first in a novel class of antipsychotic drugs.

Jaguar Health, with its extensive library of approximately 2,300 medicinal plants, has pioneered the use of ethnobotanical knowledge for drug discovery. This collection, amassed over three decades by experts in various fields, serves as a valuable resource for developing new medications. Steven King, Ph.D., Jaguar's Chief Sustainable Supply and Ethnobotanical Research Officer, emphasized the importance of traditional knowledge in advancing medical science.

Magdalena Biosciences, approximately 40% owned by Jaguar, focuses on innovating plant-based treatments for mental health issues. The Botanical Drug Candidate, derived from a plant with a long history of use by traditional healers, exemplifies Magdalena’s mission to bring first-in-class plant-based medications to market.

Jaguar will participate in the Lytham Partners Spring 2024 Investor Conference on May 30, 2024. The company will present a webcast at 2:00 pm Eastern and conduct virtual one-on-one meetings with investors. This event will offer insights into Jaguar’s ongoing projects and future plans.

Botanical drugs, defined by the FDA as products derived from plant materials, algae, and macroscopic fungi, often have a documented history of safe use in traditional medicine. This history can accelerate the safety review process, making botanical drugs a cost-effective and viable option for new treatments. These drugs are also challenging to genericize, allowing for the creation of trade secrets and novel patents, further incentivizing their development.

Jaguar Health, a commercial-stage pharmaceuticals company, focuses on developing proprietary plant-based prescription medicines for gastrointestinal issues. Its subsidiary, Napo Pharmaceuticals, targets the management of neglected gastrointestinal symptoms across various diseases, with a notable drug candidate, crofelemer, currently undergoing Phase 3 clinical trials for chemotherapy-induced overactive bowel in adults. Another subsidiary, Napo Therapeutics, aims to expand crofelemer access in Europe, particularly for rare diseases.

Magdalena Biosciences, a joint venture with Filament Health Corp., emerged from Jaguar’s Entheogen Therapeutics Initiative and is dedicated to developing plant-based prescription medicines for mental health conditions. This partnership exemplifies Jaguar’s commitment to leveraging ethnobotanical knowledge in modern drug development.