Benzinga | Feb 18, 2021 01:11PM EST

Jaguar Health In MoU With Dragon SPAC As Its Subsidiary Seeks Approval For Crofelemer In Europe

* Jaguar Health Inc (NASDAQ: JAGX) has signed a Memorandum of Understanding (MoU) with the lead sponsor of the planned Dragon special purpose acquisition company, pursuing a listing on AIM Italia.

* Per the MOU, Napo EU, the company's anticipated subsidiary in Italy, will be the named target of the Dragon SPAC and has granted latter exclusivity to list on AIM Italia and negotiate and finalize documentation for the contemplated merger transaction.

* The Dragon SPAC is a newly formed initiative expected to be incorporated in Italy, with lead sponsorship by Josh Mailman.

* Napo is exploring the conditional marketing authorization of crofelemer in Europe for the proposed indication of prophylaxis and symptomatic relief of inflammatory diarrhea, initially to be studied in a "long-hauler" COVID-19 recovery patient population.

* "Based on the MOU, we anticipate providing an exclusive license to Napo EU for the development, manufacture and commercialization of all planned crofelemer indications in Europe (excluding Russia), which the combined company shall assume rights and obligations following a merger of Napo EU with the Dragon SPAC," stated Lisa Conte, Jaguar's founder, president, and CEO

* Crofelemer (Mytesi), Napo's commercialized antidiarrheal drug FDA-approved in the U.S. for the symptomatic relief of noninfectious diarrhea in adult patients with HIV/AIDS on antiretroviral therapy. It is in Phase 3 trial in the U.S. for cancer therapy-related diarrhea.

* Price Action: JAGX stock increased 9.1% at $3.01 in market trading hours on last check Thursday.