Jaguar Health considers cryptocurrency for treasury reserves

SAN FRANCISCO - Jaguar Health, Inc. (NASDAQ:JAGX), a micro-cap pharmaceutical company with a market capitalization of just $3.86 million, announced Thursday that its Board of Directors has unanimously authorized the company to include cryptocurrency as a treasury reserve asset. According to InvestingPro data, the company currently operates with a significant debt burden and has been rapidly burning through cash.

The pharmaceutical company, which develops plant-based medicines for gastrointestinal conditions, is evaluating proposals from several banks and an investor regarding potential cryptocurrency transactions. With revenue of $11.55 million in the last twelve months and a concerning debt-to-capital ratio of 87%, the company faces significant financial challenges. InvestingPro analysis reveals 12 additional key insights about the company’s financial health and future prospects.

"Cryptocurrencies continue to gain investor attention and acceptance as a major asset class," said Lisa Conte, Jaguar’s Founder and CEO, in a press release statement. "We believe selected cryptocurrencies could serve as a strong treasury reserve asset for the Company."

The company indicated it is assessing how this treasury diversification might benefit shareholders and support its core development programs for crofelemer, its plant-based prescription medicine. This strategic move comes as the company’s stock has experienced a significant decline, with a year-to-date return of -88.44%. Despite these challenges, InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.

Jaguar Health has three main development initiatives for crofelemer: an orphan disease intestinal failure program, treatment for cancer therapy-related diarrhea in metastatic breast cancer patients, and expanding access for Canalevia (crofelemer delayed-release tablets) in dogs.

The company stated it aims to forge corporate partnerships for these programs to secure non-dilutive funding.

Jaguar Health specializes in developing prescription medicines derived from plants for people and animals with gastrointestinal distress, including chronic diarrhea, urgency, bowel incontinence, and cramping pain.

The announcement comes as more companies explore cryptocurrency as a potential treasury asset, though such investments remain relatively uncommon in the pharmaceutical sector.

In other recent news, Jaguar Health, Inc. has announced several key developments. The company is pursuing European regulatory approval for its canine diarrhea treatment, Canalevia, targeting general diarrhea in dogs across the EU. This follows a study involving 200 dogs, where revised endpoints showed significant improvement with Canalevia compared to a placebo. Additionally, Jaguar Health has extended the maturity date for $2.57 million in convertible promissory notes, aiming to support its development programs for crofelemer, a plant-based prescription medicine. In related news, the company reported a 25% enrollment in its Phase 2 study of crofelemer for pediatric microvillus inclusion disease, with promising initial results from an ongoing trial in Abu Dhabi.

Moreover, Jaguar Health is seeking FDA orphan drug designation for crofelemer to treat cancer therapy-related diarrhea in metastatic breast cancer patients. This follows a Type C meeting with the FDA discussing significant results from the Phase 3 OnTarget trial. The company has also initiated a $1.5 million direct offering to raise funds for general corporate purposes, including growth and capital expenditures. H.C. Wainwright & Co. is serving as the exclusive placement agent for this transaction. These developments highlight Jaguar Health’s active efforts to expand its product offerings and secure financial stability for future projects.

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