Jaguar Animal Health Stumbles on Secondary Offering

Jaguar Animal Health Inc. (NASDAQ: JAGX) filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. The expected price of the 4.32 million shares is $1.20 per share. The total value for the offering is expected to be roughly $5.2 million.

Aspire Capital Fund is the only selling stockholder in the offering and it is also acting as the only underwriter as well.

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.

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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, we intend to address the important unmet medical need of Chemotherapy Induced Diarrhea (CID) with a pilot program later this year for supportive care management. In June 2015 the company completed a multi-site pilot safety study involving the anticipated commercial formulation of Canalevia for CID. We have received MUMS designation for Canalevia for the treatment of CID in dogs and are planning to bring the product to market in 2017.

The company will not receive any proceeds from the offering, instead Aspire Capital will receive all of the proceeds.

Excluding Monday’s move, the stock has underperformed the broad markets with the stock down 43% year to date. Over the past 52-weeks the stock is actually down about 60%.

Shares of Jaguar closed Monday down 7% at $1.19, with a consensus analyst price target of $6.75 and a 52-week trading range of $1.09 to $4.70.

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