Jaguar Animal Health Gears Up for Secondary Offering

Jaguar Animal Health Inc. (NASDAQ: JAGX) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The most recent closing price for the stock was $2.48 but the filing did not provide the number of shares in the offering. Instead, the filing values the offering at $12.65 million.

The sole underwriter for this secondary offering is Aegis Capital.

This animal health company is focused on developing and commercializing first-in-class gastrointestinal products for companion and production animals and high value horses. Canalevia is its lead prescription drug product candidate for the treatment of various forms of diarrhea in dogs. The company achieved statistically significant results in a canine proof-of-concept study completed in February 2015, suggesting that Canalevia treatment is superior to placebo, with 91% of the Canalevia-treated dogs achieving a formed stool during the study versus 50% of the placebo-treated dogs.

In December 2015, Jaguar initiated a pivotal trial to evaluate the safety and effectiveness of Canalevia for the treatment of acute diarrhea in dogs. Additionally, it is seeking a first to market introduction of Canalevia with a conditional approval for the indication of chemotherapy induced diarrhea (CID). In June 2015, Jaguar completed a multi-site pilot safety study involving the anticipated commercial formulation of Canalevia for CID, and in August 2015 it completed submission of all required major technical sections for a conditional approval new animal drug application for CID to the U.S. Food and Drug Administration (FDA) for a phased review.
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In the filing, Jaguar described its use of proceeds as follows:

We intend to use the net proceeds from this offering for development work for Canalevia and our other prescription drug products, for commercial activities related to Neonorm, for formulation costs and establishing contract manufacturing capabilities, and for other research and product development activities, working capital and general corporate purposes.

Shares of Jaguar down fractionally Friday morning at $2.47, with a consensus analyst price target of $10.25 and a 52-week trading range of $1.69 to $7.06.