Jaguar Health Inc (NASDAQ:JAGX) subsidiary, Napo Pharmaceuticals, has struck a new licensing deal with Woodward Specialty.
Jaguar Health stock is showing exceptional strength. What’s behind JAGX gains?
The Rights Granted To Woodward Specialty
According to the company’s SEC filing, Napo signed an agreement granting Woodward Specialty — an affiliate of Future Pak — exclusive, non‑transferable, royalty‑free rights to commercialize Mytesi and Canalevia in the United States.
The agreement calls for an $18 million upfront payment, with $16 million delivered at signing and another $2 million dependent on certain conditions being met within the next six months. Beyond that, Napo could earn up to an additional $17 million in milestone payments as the partnership hits specific commercial or regulatory targets.
A notable feature of the agreement is a buy‑back option that allows Napo to reacquire all licensed rights beginning five years after the effective date, provided the company or its affiliates secure FDA approval for new Mytesi indications.
In addition, Napo entered into a manufacturing and supply agreement under which it will continue producing Mytesi for the U.S. market and supplying it to Woodward Specialty at agreed‑upon pricing.
Can Jaguar Health Reverse Its Declining Trend?
Jaguar Health is currently showing a mixed technical picture, with its price trading above the 20-day simple moving average (SMA) but struggling significantly below longer-term averages. This setup suggests a potential short-term bounce, but the overall trend remains bearish given its position relative to the 50-day, 100-day and 200-day SMAs.
The RSI is currently at 33.26, indicating that Jaguar Health’s stock is in neutral territory but close to oversold conditions. This could suggest that a reversal might be on the horizon, especially since the RSI recently dipped into oversold territory on January 13, which often precedes a price bounce.
Currently, the MACD is below its signal line, indicating bearish pressure on Jaguar Health’s stock. This suggests that momentum is still weak, and traders should be cautious about expecting a strong recovery in the near term.
Jaguar Health’s stock has not experienced a golden cross or death cross recently, which means traders should focus on the current moving average relationships. The 20-day SMA is above the 50-day SMA, but the longer-term averages are significantly higher, indicating a persistent downtrend.
Over the past 12 months, Jaguar Health has plummeted by 95.02%, reflecting a severe decline in value. This long-term performance underscores the challenges the company faces and suggests that any short-term gains may not be sustainable without a fundamental shift in its business outlook.
JAGX Price Action: Jaguar Health shares were up 92.87% at $1.47 at the time of publication on Friday. The stock is trading near its 52-week low of $0.64, according to Benzinga Pro.
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