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Source: Jaguar Animal Health news release

Jaguar Animal Health, Inc. (NASDAQ: JAGX) ("Jaguar"), an animal health company focused on developing and commercializing first-in-class gastrointestinal products for companion and production animals, foals, and high value horses, today announced that it has begun entry into the organic market with Neonorm Calf, following listing of Neonorm Calf with an organization that evaluates livestock products in accordance with the U.S. Department of Agriculture (USDA) National Organic Standards on behalf of specified producers in New York state.

Neonorm Calf, one of Jaguar's lead non-prescription products, has been formulated and clinically tested to help proactively retain fluid in dairy calves and reduce the severity of diarrhea-aiding the animals in avoiding debilitating, dangerous levels of dehydration associated with scours. Neonorm is a standardized botanical extract derived from the Croton lechleri tree, which is sustainably harvested.

Kathie Arnold, a dairy farmer at Twin Oaks Dairy-a Truxton, NY dairy farm that has been certified organic since 1998-commented, "Neonorm Calf gives us another welcome tool in the toolbox for our certified organic calves."

Additionally, Jaguar is applying to have Neonorm Calf listed by the Organic Materials Review Institute (OMRI). OMRI is an international nonprofit organization that determines which input products are allowed for use in organic production and processing. OMRI Listed products are allowed for use in certified organic operations under the USDA National Organic Program.

According to OMRI, agricultural products that are outputs of organic farms or processors (such as feeds, fibers and foods) can be USDA "certified organic." Input products (such as additives, fertilizers, pesticides, and so forth) are typically ineligible for organic certification. However, inputs must receive approval prior to use on a certified organic operation.

According to data from the USDA, as of November 1, 2016 there were a total of 23,116 certified organic operations throughout U.S. states and territories. California contained the largest number, with 4,713 certified organic operations, followed by Wisconsin with 1,713, New York with 1,543, Pennsylvania with 1,209, and Washington with 1,171. According to a representative of the NY Organic Dairy Initiative, in 2013 there were more than 400 certified organic dairies in New York state-which at that time amounted to about 10 percent of all New York dairy farms.

According to the Organic Trade Association's (OTA) 2016 Organic Industry Survey, the U.S. organic industry posted new records in 2015, with total organic product sales hitting a new benchmark of $43.3 billion, up 11 percent from the previous year's record level and outpacing the overall food market's growth rate of 3 percent. According to OTA, dairy, the second biggest organic food category, accounted for $6.0 billion in sales, an increase of over 10 percent, and dairy accounts for 15 percent of total organic food sales.

"Organic livestock production plays a vital role in support of a sustainable and safe farm and food system, both in the U.S. and internationally. According to a report published by Allied Market Research, the global market for organic dairy food and drinks-organic milk, yogurt, cheese, and others-is expected to grow at a compound annual growth rate of 14.25% from 2016 to reach $36.7 billion by 2022 from $14.5 billion in 2015," commented Lisa Conte, Jaguar's president and CEO.

"We're very pleased that Neonorm Calf has been listed as allowable for use at certified organic dairy farms in New York state. We believe Neonorm Calf will qualify as allowable for use on certified organic dairies throughout the U.S., and we're currently working to obtain additional required listings. Jaguar is focused on expanding market awareness regarding the novel, anti-secretory mechanism of action common to Neonorm Calf and the drug product candidates in our pipeline."

About Jaguar Animal Health, Inc.
Jaguar Animal Health, Inc. 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. Equilevia (formerly referred to as SB-300) is Jaguar's prescription drug product candidate for the treatment of gastrointestinal ulcers in horses. Canalevia and Equilevia contain ingredients isolated and purified from the Croton lechleri tree, which is sustainably harvested.

Neonorm Calf and Neonorm Foal are the Company's lead non-prescription products. Neonorm is a standardized botanical extract derived from the Croton lechleri tree. Canalevia and Neonorm are distinct products that act at the same last step in a physiological pathway generally present in mammals. Jaguar has nine active investigational new animal drug applications, or INADs, filed with the FDA and intends to develop species-specific formulations of Neonorm in six additional target species, formulations of Equilevia in horses, and Canalevia for cats and dogs.

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