Jaguar Health Stock Drops 64% to $12.35 After Fee Waiver Spike
JAGX shares fell to $12.35 on Wednesday, reversing Tuesday's 1,100% gain driven by an FDA fee waiver and low float.
Key points
- Jaguar Health stock dropped 64.16% to $12.35 on Wednesday after Tuesday's spike.
- A 1-for-15 split left only 520,088 shares in the public float.
- Q2 data showed a $12.7 million net loss against $1.2 million in revenue.
Jaguar Health Inc. shares fell 64.16% to $12.35 on Wednesday. This drop reversed Tuesday’s 1,100% surge to $34.46. The initial rally followed an FDA fee waiver for Mytesi.
A September 17 reverse split left only 520,088 public shares available. This low float amplified the price movement. Profit-taking now drives the sharp decline.
Low float amplified price swings
The FDA granted a 2027 user fee waiver for Mytesi. This provided cost relief for the company. The limited share supply made the rally extreme.
The 1-for-15 split restricted trading volume. Investors reacted quickly to the news. The subsequent sell-off was equally sharp.
Financial pressures persist despite waiver
Jaguar Health reported a $12.7 million net loss in Q2. Prescription revenue was only $1.2 million. Cash burn remains a significant challenge for the business.
The company faces over $25 million in current liabilities. Tight working capital necessitates external funding. These figures appeared in the August 19 report.
New offering seeks working capital
JAGX filed a prospectus supplement on September 3. This signals an upcoming secondary offering. The company needs funds to meet obligations. Benzinga reported these details.
