Why Is Jaguar Health (JAGX) Stock Down 55% Today?

Core Viewpoint - Jaguar Health (NASDAQ:JAGX) stock has significantly declined following the failure of a Phase 3 clinical trial for crofelemer, which did not meet its primary endpoint [2][3]. Group 1: Clinical Trial Results - The Phase 3 clinical trial evaluated crofelemer for the prophylaxis of diarrhea in adult cancer patients with solid tumors, covering 10 different tumor types [4]. - Crofelemer was only effective in patients with breast and respiratory cancers, indicating limited efficacy across the studied tumor types [2][4]. - The trial's failure has led to heavy trading activity, with over 12 million shares changing hands, far exceeding the average daily trading volume of approximately 800,000 shares [3]. Group 2: Stock Market Impact - As of Tuesday afternoon, JAGX stock has dropped by 55.2% due to the negative trial results [6]. - The significant decline in stock price has prompted traders to sell shares aggressively, reflecting investor sentiment following the trial's outcome [3][6].