Jaguar Health reduced quarterly sales and marketing spending by more than 99% after transferring U.S. commercial responsibility for Mytesi and Canalevia-CA1 to Future Pak, substantially changing the company’s cost structure and revenue model.
Second-quarter sales and marketing expense declined to approximately $5,000 from $2.5 million in the prior-year period.
The decline followed Jaguar and Napo’s January dissolution of their internal sales and marketing organization after the company entered its commercial licensing arrangement with Future Pak.
Under that agreement, Future Pak became the exclusive U.S. marketer of Mytesi and Canalevia-CA1.
All U.S. revenue generated by those products since January 12 goes to Future Pak, while Jaguar’s Napo Pharmaceuticals operation continues manufacturing crofelemer and Mytesi and supplies products to Future Pak under cost-plus terms.
The new structure creates an unusual comparison between unit activity and reported revenue.
Jaguar said the number of Mytesi bottles it sold increased significantly year-over-year during Q2, even though prescription product revenue fell 60% to approximately $1.2 million from $2.9 million.
The difference reflects the shift away from recording U.S. commercial Mytesi revenue under the new licensing model.
The deal has also provided Jaguar with non-dilutive capital.
The company recognized a $16 million upfront licensing payment from Future Pak during the first quarter, along with $3 million related to early termination of a buy-back option.
Jaguar has also satisfied the conditions necessary to receive an additional $2 million holdback from the upfront fee.
The commercial restructuring is intended to allow Jaguar to direct more of its resources toward developing crofelemer for rare intestinal-failure disorders.
Research and development expenses increased slightly to approximately $3.3 million from $3.2 million as the company advanced development of a powder formulation used in rare-disease intestinal-failure trials.
Jaguar recently reported data from an evaluation of crofelemer in a pediatric patient with ultrarare microvillus inclusion disease, showing a reduction in parenteral support normalized to body weight of as much as 48%.
The company expects its clinical package for a potential MVID New Drug Application to be ready by the end of 2026, with submission targeted for the second quarter of 2027.
Quarterly operating loss narrowed modestly to $7.6 million from $8 million as approximately $2.1 million of reduced operating expenses helped offset lower product revenue.
Net loss attributable to common shareholders nevertheless widened to about $12.7 million from $10.4 million, reflecting higher interest costs and fair-value losses on financial instruments.
Jaguar said the Future Pak licensing arrangement is aligned with its strategic focus on advancing crofelemer for rare-disease indications involving intestinal failure.
