Elanco US Inc. and Jaguar Animal Health Inc (NASDAQ:JAGX) reported a deal to license, advance, and commercialize lead product candidate Canalevia™. It is under investigation for cure of acute and CID in dogs.
Diarrhea comes in the list of the most popular reasons for veterinary office appointments for dogs and is the second most popular reason for calls to the veterinary emergency room. The latest deal gives Elanco exclusive international rights to Canalevia™, an offering whose active pharmaceutical component is sustainably purified and isolated from the Croton lechleri tree, for application in companion animals. Elanco and Jaguar will collaborate on the international advancement of the offering and on its commercialization in the United States.
Aaron Schacht, the VP of Elanco R&D, reported that they continue to seek unique offering for their clients and the animals they care for. They look forward to associating with Jaguar to get this potential new, thrilling solution to veterinarians across the world. Under the deal terms, Jaguar will get an upfront payment of $1.5 million and other payments upon attainment of certain development, sales and regulatory milestones in a total amount of up to $61 million due throughout the deal term; product development cost reimbursement, and royalty outlays on international sales.
The deal indicates that Jaguar will source the licensed offerings to Elanco, and that the entities will agree to fix a minimum sales prerequisite that Elanco must fulfill to keep exclusivity. Elanco will compensate Jaguar for Canalevia™-related costs, including repayment for Canalevia™-related costs in 4Q2016, certain regulatory and development expenses linked to Jaguar’s intended target animal safety trial and the closure of Jaguar’s field trial of Canalevia™ targeting acute diarrhea in dogs.
Lisa Conte, the CEO and President of Jaguar, said that they are extremely delighted to have finalized this strategic deal with Elanco, as they outspread their commitment to unique, first-in-class offerings for companion animals.