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Shares of Jaguar Health jump on news federal government will help develop its cholera drug lechlemer

Contractors funded by the National Institute of Allergy and Infectious Diseases will conduct toxicology testing for seven-day rat and dog studies
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NIAID will conduct toxicology testing for seven-day rat and dog studies

Shares of Jaguar Health Inc (NASDAQ:JAQX) rose by double-digits Tuesday after announcing that its subsidiary will receive preclinical services from the federal government to support the development of drug candidate lechlemer to treat cholera.

Jaguar's wholly-owned human-health subsidiary, Napo Pharmaceutical Inc, produces lechlemer. Contractors funded by the National Institute of Allergy and Infectious Diseases will conduct toxicology testing for seven-day rat and dog studies. NIAID is part of the National Institutes of Health.

The San Francisco-based company’s stock was up 96% to $14.67 a share.

READ: Jaguar Health shares slide in premarket on profit-taking after tripling on supply deal

Lechlemer is a drug candidate under the botanical guidance of the US Food and Drug Administration. It is a standardized and proprietary botanical extract that is distinct from mytesi, Napo’s FDA-approved drug. Lechlemer is derived from the same source as mytesi: the Croton lechleri tree.

Cholera is an acute diarrheal illness that kills more 100,000 people each year around the world.

“We are grateful for NIAID's support to conduct these preclinical animal studies of lechlemer," said Jaguar CEO Lisa Conte. "We believe lechlemer, which has the same mechanism of action as crofelemer and is significantly less costly to produce, may support efforts to receive a priority review voucher from the FDA for a cholera indication.”

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