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Jaguar, Elanco to jointly develop, promote canine diarrhea treatment

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Agreement provides Elanco with license rights to Jaguar's crofelemer-based drug product candidates for treating diarrhea in companion animals.

Jaguar Animal Health Inc. and Elanco US Inc., a subsidiary of Eli Lilly & Co., announced an agreement to license, develop and commercialize Canalevia, a Jaguar drug product candidate under investigation for the treatment of acute and chemotherapy-induced diarrhea (CID) in dogs.

Diarrhea is one of the most common reasons for veterinary office visits for dogs and is the second most common reason for visits to the veterinary emergency room.

The agreement grants Elanco exclusive global rights to Canalevia — a product whose active pharmaceutical ingredient is sustainably isolated and purified from the Croton lechleri tree — for use in companion animals. Jaguar and Elanco will collaborate on the global development of the product and on its commercialization in the U.S.

“Elanco continues to seek innovative solutions for our customers and the animals they care for,” Aaron Schacht, vice president of Elanco research and development, said. “We look forward to collaborating with Jaguar to bring this potential new, exciting solution to veterinarians around the world.”

Under the terms of the agreement, Jaguar will receive an upfront payment of $1.5 million and additional payments upon achievement of certain development, regulatory and sales milestones in an aggregate amount of up to $61 million, payable throughout the term of the agreement; it will additionally receive product development expense reimbursement and royalty payments on global sales.

The agreement specifies that Jaguar will supply the licensed products to Elanco and that the parties will agree to set a minimum sales requirement that Elanco must meet to maintain exclusivity.

Elanco will also reimburse Jaguar for Canalevia-related expenses, including those incurred during the fourth quarter of 2016, certain development and regulatory expenses related to Jaguar's planned target animal safety study and the completion of Jaguar's field study of Canalevia for acute diarrhea in dogs.

“We are very happy to have entered into this strategic collaboration with Elanco as they extend their commitment to novel, first-in-class products for companion animals,” Jaguar president and chief executive officer Lisa Conte said. “Elanco is a recognized leader in animal health, with great commercial reach. We believe this agreement will significantly expand market awareness regarding the novel, anti-secretory mechanism of action of crofelemer and its potential to serve as a new method of treating diarrheal diseases. We anticipate that commercialization of Canalevia will expand our range of first-in-class gastrointestinal products beyond production animals, horses and foals to companion animals in need around the world, and we believe that the collaboration with Elanco will provide broad access to key markets globally.”

Jaguar has retained the commercial responsibility for the CID indication of Canalevia in dogs, which has received minor use/minor species designation from the Food & Drug Administration and which the company expects will be the first indication available commercially in the next year. The company has established a foundation of direct educational and promotional capabilities for novel anti-secretory agents through its non-prescription product line for production animals.

Jaguar is an animal health company focused on developing and commercializing first-in-class gastrointestinal products for companion and production animals, foals and high-value horses. Canalevia is Jaguar's lead prescription drug product candidate, intended for the treatment of various forms of diarrhea in dogs.

Elanco provides comprehensive products and knowledge services to improve animal health and food animal production in more than 70 countries and has more than 6,500 employees worldwide. Together with its customers, Elanco is committed to raising awareness about global food security and celebrating and supporting the human/animal bond.

TAGS: News Business
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