Jounce Therapeutics Reports Fourth Quarter and Full Year 2016 Financial Results
March 10 2017 - 08:00AM
- Completed upsized initial public offering
raising $117.1 million in gross proceeds -
Jounce Therapeutics, Inc. (NASDAQ:JNCE), a clinical stage
company focused on the discovery and development of novel cancer
immunotherapies and predictive biomarkers, today reported financial
results and provided a corporate update for the fourth quarter and
the year ended December 31, 2016.
“2016 was an important year of growth and achievement for
Jounce. We progressed into the clinic as planned with the
initiation of our Phase 1/2 ICONIC study of our lead product
candidate, JTX-2011. We are on track to report safety data in
the first half of 2017 and preliminary efficacy data in the second
half of 2017. We also substantially increased our financial
strength and strategic flexibility through our collaboration with
Celgene and our initial public offering,” said Richard Murray,
Ph.D., chief executive officer of Jounce Therapeutics. “In
addition to the ICONIC study, we remain committed to the further
discovery and development of novel immunotherapies matched to
potentially predictive biomarkers to deliver the right therapy to
the right patient."
Recent Corporate Highlights
- Completed upsized initial public offering: In
February 2017, Jounce completed its initial public offering (IPO),
of 7,319,750 shares of common stock at a public offering price of
$16.00 per share, including 954,750 shares of common stock issued
upon the full exercise by the underwriters of their option to
purchase additional shares. The gross proceeds from the IPO were
approximately $117.1 million, or $108.9 million after underwriting
discounts and offering expenses.
- Strengthened executive leadership team: In
February 2017, Jounce appointed Emma Lees, Ph.D. as Vice President,
Discovery. In this role, Dr. Lees will lead the early discovery
programs identified through the Translational Science Platform. In
March 2017, Jounce appointed Cherry Thomas, M.D. to its clinical
leadership team as Vice President, Clinical Development.
These additions follow several key appointments by Jounce in 2016
including Barbara G. Duncan and Perry A. Karsen to its Board of
Directors, and Stephen Farrand, Ph.D., as Chief Technical
Officer.
- CEO Richard Murray received WEST award: The
Women in the Enterprise of Science and Technology (WEST)
organization dedicated to supporting and advancing women in the
enterprise of science and technology, recognized Jounce CEO Richard
Murray, Ph.D. for his support and advancement of the careers of
women in biotech.
2016 Key Achievements
- Initiated Phase 1/2 ICONIC Study: In September
2016, Jounce initiated its Phase 1/2 ICONIC study of lead product
candidate, JTX-2011, in patients with advanced solid tumors who
have not responded to standard treatment options or whose cancers
have returned following standard treatment. The ICONIC trial has a
four-part adaptive design, initially assessing safety and
tolerability, and then preliminary efficacy as both a monotherapy
and in combination with a PD-1 inhibitor.
- Received $225M upfront payment from strategic
collaboration agreement with Celgene: In July 2016, Jounce
entered into a global strategic collaboration with Celgene to
develop and commercialize innovative immuno-oncology treatments for
patients with cancer. The collaboration includes options on
JTX-2011 and up to four early-stage programs to be selected from a
defined pool of B cell, T regulatory cell and tumor-associated
macrophage targets from Jounce’s Translational Science Platform and
an additional option to equally share JTX-4014, Jounce’s PD-1
product candidate. Jounce received an upfront payment of $225.0
million and a $36.1 million equity investment. Additionally,
if Celgene exercises all of its options, all programs meet all
milestones, including regulatory approvals in the United States and
outside the United States, and Celgene extends the initial four
year research term for three additional years, Jounce is eligible
to earn up to approximately $2.6 billion in clinical,
regulatory, and/or commercialization milestone payments,
option-exercise fees and research term extension fees.
Upcoming Milestones
- Jounce expects to report data from the Phase 1/2 ICONIC study
of JTX-2011, including:- Safety and PK/PD data from the Phase 1
portion of the study in the first half of 2017- Preliminary
efficacy data in the second half of 2017 in both a monotherapy
setting and combination therapy setting with anti-PD-1 antibody
nivolumab.
“The Jounce team is looking forward to an
eventful 2017. We are pleased with our clinical progress and
continued efforts on discovering novel immunotherapies,” added
Murray. “Our strong financial position is allowing the company to
execute comprehensive development programs, critical in the highly
competitive immuno-oncology environment.”
Fourth Quarter and Full Year 2016 Financial
Results
- Cash Position: Cash, cash equivalents and
marketable securities as of December 31, 2016 were $257.4 million
compared to $45.2 million as of December 31, 2015. Total cash, cash
equivalents and marketable securities at December 31, 2016 did not
include total net proceeds of approximately $108.9 million from the
Company’s IPO of 7,319,750 shares of common stock in February
2017.
- Collaboration Revenue: Collaboration revenue
was $20.3 million and $37.2 million for the fourth quarter and year
ended 2016, respectively. Jounce did not record any collaboration
revenue during the same periods in 2015. The increase in revenue
was due to the Company’s collaboration agreement with Celgene,
which it entered into in July 2016. Collaboration revenue in 2016
reflected the amortization of the upfront payment of $225.0 million
received from Celgene.
- R&D Expenses: Research and development
expenses were $10.7 million for the fourth quarter of 2016,
compared to $7.3 million for the same period in 2015. The increase
was primarily due to $1.9 million of clinical costs related to the
JTX-2011 ICONIC trial and $1.4 million in employee compensation
costs related to increased headcount. For the full year 2016,
R&D expenses were $34.9 million compared to $22.1 million for
2015. The increase was primarily due to $6.3 million in employee
compensation costs related to increased headcount and stock
compensation expense related to the achievement of milestones, $3.9
million in clinical costs related to the JTX-2011 ICONIC trial
initiated in 2016, $1.5 million in external research costs related
to the advancement of its lead programs JTX-2011 and JTX-4014 and
$0.8 million in increased facilities and operations costs.
- G&A Expenses: General and administrative
expenses were $4.7 million for the fourth quarter of 2016, compared
to $2.8 million for the same period in 2015. The increase in
G&A expenses was primarily due to $0.5 million in professional
and consulting fees, $0.7 million in employee compensation costs
related to increased headcount, and $0.4 in increased facilities
costs. For the full year 2016, G&A expenses were $16.8 million
compared to $8.3 million for 2015. The increase was primarily due
to $2.4 million in employee compensation costs related to increased
headcount, $2.0 million of legal and accounting costs related to
its prior confidential registration statement on Form S-1 filed in
2015, $1.3 million in legal fees, primarily related to business
development activities, and $0.9 million in accounting and
recruiting fees.
- Net Income/Loss: Net income was $5.5 million
for the fourth quarter of 2016, or basic and diluted net income per
share attributable to common shareholders of $0.11 and $0.05,
respectively, as compared to a net loss of $10.1 million for the
same period in 2015, or a basic and diluted net loss per share
attributable to common stockholders of $6.86. Net loss for
the full year 2016 was $13.7 million, or a basic and diluted net
loss per share attributable to common stockholders of $11.00, as
compared to $28.5 million for 2015, or a basic and diluted net loss
per share attributable to common stockholders of $23.13.
Financial Guidance
Based on its current operating plan, Jounce expects to use
approximately $100.0 to $120.0 million in cash for the full year
2017, including the projected expense of operating activities,
build out and capital costs associated with the relocation of our
lab and office space within Cambridge, Massachusetts and federal
and state income taxes related to the receipt of the Celgene
upfront payment of $225.0 million.
Jounce expects collaboration revenue for the full year 2017 of
approximately $80.0 million, representing the amortization of the
Celgene upfront payment of $225.0 million received in 2016.
Cautionary Note Regarding Forward-Looking
Statements
Various statements in this release concerning Jounce’s future
expectations, plans and prospects, including without limitation,
Jounce’s expectations regarding the timing, progress and results of
preclinical studies and clinical trials for Jounce’s product
candidates and any future product candidates; the timing, scope or
likelihood of regulatory filings and approvals; and Jounce’s
ability to identify new targets for additional product candidates,
to develop future product candidates and combination therapies, and
to successfully commercialize and market products may constitute
forward-looking statements for the purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995 and other federal securities laws and are subject to
substantial risks, uncertainties and assumptions. You should not
place reliance on these forward looking statements, which often
include words such as “anticipate,” “estimate,” “expect,” “intend,”
“may,” “on track,” “plan,” “predict,” “target,” “potential” or
similar terms, variations of such terms or the negative of those
terms. Although the Company believes that the expectations
reflected in the forward-looking statements are reasonable, the
Company cannot guarantee such outcomes. Actual results may differ
materially from those indicated by these forward-looking statements
as a result of various important factors, including, without
limitation, Jounce’s ability to successfully demonstrate the
efficacy and safety of its product candidates and future product
candidates, the pre-clinical and clinical results for its product
candidates, which may not support further development and marketing
approval, the potential advantages of Jounce’s product candidates,
the development plans of its product candidates, actions of
regulatory agencies, which may affect the initiation, timing and
progress of pre-clinical studies and clinical trials of its product
candidates, Jounce’s anticipated milestones, Jounce’s ability to
obtain, maintain and protect its intellectual property, Jounce’s
ability to enforce its patents against infringers and defend its
patent portfolio against challenges from third parties, the timing,
cost or other aspects of a potential commercial launch of Jounce’s
product candidates and potential future sales of our current
product candidates or any other potential products if any are
approved for marketing, competition from others developing products
for similar uses, Jounce’s ability to manage operating expenses,
Jounce’s ability to maintain its collaboration with Celgene and
establish or maintain future collaborations, Jounce’s dependence on
third parties for development, manufacture, marketing, sales and
distribution of product candidates, the outcome of litigation, and
unexpected expenditures, as well as those risks more fully
discussed in the section entitled “Risk Factors” in Jounce’s most
recent Registration Statement on Form S-1 filed with the Securities
and Exchange Commission as well as discussions of potential risks,
uncertainties, and other important factors in Jounce’s subsequent
filings with the Securities and Exchange Commission. All such
statements speak only as of the date made, and the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Jounce Therapeutics Jounce Therapeutics,
Inc. is a clinical stage immunotherapy company dedicated to
transforming the treatment of cancer by developing therapies that
enable the immune system to attack tumors and provide long‑lasting
benefits to patients. Through the use of its Translational Science
Platform, Jounce first focuses on specific cell types within tumors
to prioritize targets, and then identifies related biomarkers
designed to match the right therapy to the right patient. Jounce’s
lead product candidate, JTX-2011, is a monoclonal antibody that
binds to and activates ICOS and is currently in a Phase 1/2 trial.
For more information, please visit http://jouncetx.com/
Jounce
Therapeutics, Inc. |
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|
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Consolidated
Statements of Operations |
|
|
|
|
(amounts in
thousands, except share and per share data) |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenue: |
|
|
|
|
|
|
|
|
Collaboration revenue—related party |
|
$ |
20,289 |
|
|
$ |
— |
|
|
$ |
37,197 |
|
|
$ |
— |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
10,654 |
|
|
7,336 |
|
|
34,904 |
|
|
22,130 |
|
General
and administrative |
|
4,653 |
|
|
2,804 |
|
|
16,759 |
|
|
8,266 |
|
Total
operating expenses |
|
15,307 |
|
|
10,140 |
|
|
51,663 |
|
|
30,396 |
|
Operating income
(loss) |
|
4,982 |
|
|
(10,140 |
) |
|
(14,466 |
) |
|
(30,396 |
) |
Other income (expense),
net: |
|
|
|
|
|
|
|
|
Other
income (expense), net |
|
484 |
|
|
2 |
|
|
763 |
|
|
5 |
|
Other
financing income, net |
|
— |
|
|
— |
|
|
— |
|
|
1,859 |
|
Total
other income (expense), net |
|
484 |
|
|
2 |
|
|
763 |
|
|
1,864 |
|
Net income (loss) |
|
$ |
5,466 |
|
|
$ |
(10,138 |
) |
|
$ |
(13,703 |
) |
|
$ |
(28,532 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation of net
income (loss) to net income (loss) attributable to common
stockholders: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
5,466 |
|
|
$ |
(10,138 |
) |
|
$ |
(13,703 |
) |
|
$ |
(28,532 |
) |
Accretion of preferred
stock to redemption value |
|
— |
|
|
— |
|
|
— |
|
|
(1,011 |
) |
Loss on extinguishment
of convertible preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
(2,079 |
) |
Accrued dividends on
Series A convertible preferred stock |
|
(945 |
) |
|
(948 |
) |
|
(3,760 |
) |
|
(2,716 |
) |
Accrued dividends on
Series B convertible preferred stock |
|
(1,121 |
) |
|
(1,124 |
) |
|
(4,460 |
) |
|
(3,165 |
) |
Accrued dividends on
Series B-1 convertible preferred stock |
|
(735 |
) |
|
— |
|
|
(1,215 |
) |
|
— |
|
Net income applicable
to preferred stockholders |
|
(2,407 |
) |
|
— |
|
|
— |
|
|
— |
|
Net income (loss)
attributable to common stockholders |
|
$ |
258 |
|
|
$ |
(12,210 |
) |
|
$ |
(23,138 |
) |
|
$ |
(37,503 |
) |
Net income (loss) per
share attributable to common stockholders basic |
|
$ |
0.11 |
|
|
$ |
(6.86 |
) |
|
$ |
(11.00 |
) |
|
$ |
(23.13 |
) |
Net income (loss) per
share attributable to common stockholders diluted |
|
$ |
0.05 |
|
|
$ |
(6.86 |
) |
|
$ |
(11.00 |
) |
|
$ |
(23.13 |
) |
Weighted-average common
shares outstanding basic |
|
2,386,365 |
|
|
1,779,860 |
|
|
2,102,651 |
|
|
1,621,240 |
|
Weighted-average common shares outstanding diluted |
|
5,227,752 |
|
|
1,779,860 |
|
|
2,102,651 |
|
|
1,621,240 |
|
Jounce Therapeutics, Inc. |
Consolidated Selected Balance Sheet Items |
(amounts in thousands) |
(unaudited) |
|
|
|
|
|
As of December 31, |
|
|
2016 |
|
2015 |
Balance Sheet
Data: |
|
|
|
|
Cash, cash equivalents,
and marketable securities |
|
$ |
257,374 |
|
|
$ |
45,161 |
|
Working capital |
|
$ |
61,114 |
|
|
$ |
38,989 |
|
Total assets |
|
$ |
271,312 |
|
|
$ |
52,975 |
|
Convertible preferred
stock |
|
$ |
139,038 |
|
|
$ |
102,961 |
|
Total
stockholders' deficit |
|
$ |
(69,088 |
) |
|
$ |
(58,760 |
) |
|
|
|
|
|
|
|
|
|
Media Contact:
Dan Budwick
Pure Communications, Inc.
(973) 271-6085
dan@purecommunicationsinc.com
Investor Contact:
Beth DelGiacco
Stern Investor Relations, Inc.
(212) 362-1200
beth@sternir.com
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