- Completed upsized initial public offering
raising $117.1 million in gross proceeds -- Presented preclinical
data supporting ongoing Phase 1/2 ICONIC study -- Initiated Phase 2
portion of ICONIC study evaluating JTX-2011 in advanced solid
tumors -
Jounce Therapeutics, Inc. (NASDAQ:JNCE), a clinical stage company
focused on the discovery and development of novel cancer
immunotherapies coupled with predictive biomarkers for patient
enrichment, today reported financial results and provided a
corporate update for the first quarter ended March 31, 2017.
“Our successful IPO in the first quarter marked an important
milestone for the company and has provided us the financial
flexibility to focus on the execution of our lead clinical program,
JTX-2011, and to continue to advance our earlier-stage targets
emerging from our Translational Science Platform,” said Richard
Murray, Ph.D., chief executive officer of Jounce Therapeutics. “We
continue to execute on our goal of being a leading next-generation
immunotherapy company, having recently announced the start of the
Phase 2 portion, designed to evaluate preliminary efficacy, of our
Phase 1/2 ICONIC study of JTX-2011 in patients with advanced solid
tumors. The safety, PK and PD data from the Phase 1 portion of the
study, launched last summer, will be presented at ASCO 2017, and we
remain on track to disclose data from the Phase 2 preliminary
efficacy evaluation by the end of the year.”
Corporate Highlights:
- Completed upsized initial public offering
(IPO): In February 2017, Jounce completed its 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 underwriters of their option to purchase
additional shares. Gross proceeds from the IPO were approximately
$117.1 million, or $106.5 million after deducting underwriting
discounts and commissions and other offering expenses.
- Added to Russell Indexes®: Effective March 31,
2017, Jounce was added to the Russell 2000®, 3000® and
Microcap® Indexes as part of Russell’s quarterly additions of
companies with recent IPOs.
Clinical Highlights:
- Presented JTX-2011 preclinical data at American
Association for Cancer Research (AACR) Annual Meeting: In
April 2017, Jounce presented preclinical data during an oral
session at AACR that supports the ongoing Phase 1/2 ICONIC study of
JTX-2011, an agonist monoclonal antibody targeting ICOS (Inducible
T cell CO-Stimulator). Additionally, Jounce presented details on
the design of the ICONIC study during a poster session at the
meeting.
- Initiated the Phase 2 portion of the ICONIC study of
JTX-2011: In April 2017, the Phase 2 portion of the Phase
1/2 ICONIC study of JTX-2011 was initiated in patients with
advanced solid tumors. Patient enrollment has commenced in Part C
of the study, which evaluates JTX-2011 as a monotherapy in at least
three indication specific cohorts, including head and neck squamous
cell cancer (HNSCC) and non-small cell lung cancer (NSCLC). The
Part D portion, which is expected to begin enrolling in the second
quarter of 2017, will evaluate JTX-2011 in combination with
nivolumab and will include at least five cohorts, including HNSCC,
NSCLC, triple negative breast cancer, melanoma and gastric
cancer.
Upcoming Data Presentation:
- Jounce will report data from the Phase 1 portion of the ICONIC
study of JTX-2011 at the American Society of Clinical Oncology
(ASCO) Annual Meeting on June 2-6, 2017 in Chicago, Illinois.
The safety, PK and PD data from both monotherapy and in combination
with nivolumab (marketed as OPDIVO®), will represent the first
reported human data of the ICOS agonist approach in cancer
immunotherapy.
First Quarter 2017 Financial Results:
- Cash Position: Cash, cash equivalents and
investments as of March 31, 2017 were $340.0 million, compared to
$257.4 million as of December 31, 2016. This increase was primarily
due to the $106.5 million in net proceeds from the IPO, offset by
operating costs during the quarter.
- Collaboration Revenue: Collaboration revenue
was $20.3 million for the first quarter of 2017. Jounce did not
record any collaboration revenue during the same period in 2016.
The increase in revenue was due to the Company’s global strategic
collaboration with Celgene, which it entered into in July 2016.
Collaboration revenue in the first quarter of 2017 reflected the
amortization of the upfront payment of $225.0 million received from
Celgene in 2016.
- R&D Expenses: Research and development
expenses were $15.0 million for the first quarter of 2017, compared
to $8.3 million for the same period in 2016. The increase in
R&D expenses was primarily due to $2.7 million in increased
clinical costs related to the Phase 1/2 ICONIC study of JTX-2011
and $2.5 million in increased employee compensation costs related
to increased headcount.
- G&A Expenses: General and administrative
expenses were $5.6 million for the first quarter of 2017, compared
to $2.6 million for the same period in 2016. The increase in
G&A expenses was primarily due to $1.0 million in increased
employee compensation costs related to increased headcount, $0.9
million in increased facilities costs and $0.8 million in increased
costs related to travel, insurance and audit and tax fees.
- Net Income (Loss): Net income was $0.4 million
for the first quarter of 2017, or a basic and diluted net loss per
share attributable to common stockholders of $0.02 as a result of
preferred stock dividends that were accrued prior to the completion
of the IPO, as compared to a net loss of $10.9 million for the same
period in 2016, or a basic and diluted net loss per share
attributable to common stockholders of $6.81. The decrease in net
loss per share attributable to common stockholders is primarily due
to the completion of the IPO in February 2017, which resulted in
the sale of 7,319,750 shares of common stock and the automatic
conversion of 22,283,690 shares of convertible preferred stock into
shares of common stock.
Financial Guidance:Jounce reiterates the
financial guidance previously provided for the full year 2017.
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 its
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 in 2016.
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 Annual
Report on Form 10-K 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.
Social MediaWe use our company website
(www.jouncetx.com), investor and media relations website
(http://ir.jouncetx.com/phoenix.zhtml?c=254289&p=irol-news),
Facebook page (https://www.facebook.com/jouncetx/), LinkedIn page
(https://www.linkedin.com/company-beta/3494537/?pathWildcard=3494537)
and Twitter feed (https://twitter.com/JounceTx) as channels for the
distribution of information. The information we post through these
channels may be deemed material. Accordingly, investors should
monitor these channels, in addition to following our press
releases, Securities and Exchange Commission filings and public
conference calls and webcasts. The contents of our website and
social media channels are not, however, a part of this report.
About Jounce TherapeuticsJounce 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 www.jouncetx.com.
Jounce Therapeutics, Inc. |
Condensed Consolidated Statements of Operations
(unaudited) |
(amounts in thousands, except per share
data) |
|
|
Three Months Ended March 31, |
|
2017 |
|
2016 |
Revenue: |
|
|
|
Collaboration revenue—related party |
$ |
20,289 |
|
|
$ |
— |
|
Operating
expenses: |
|
|
|
Research
and development |
14,959 |
|
|
8,255 |
|
General
and administrative |
5,577 |
|
|
2,646 |
|
Total
operating expenses |
20,536 |
|
|
10,901 |
|
Operating loss |
(247 |
) |
|
(10,901 |
) |
Other income, net: |
|
|
|
Other
income, net |
632 |
|
|
11 |
|
Total
other income, net |
632 |
|
|
11 |
|
Net income (loss) |
$ |
385 |
|
|
$ |
(10,890 |
) |
|
|
|
|
Reconciliation of net
income (loss) to net loss attributable to common stockholders: |
|
|
|
Net income (loss) |
$ |
385 |
|
|
$ |
(10,890 |
) |
Accrued dividends on
Series A convertible preferred stock |
(268 |
) |
|
(935 |
) |
Accrued dividends on
Series B convertible preferred stock |
(318 |
) |
|
(1,109 |
) |
Accrued dividends on
Series B-1 convertible preferred stock |
(208 |
) |
|
— |
|
Net loss attributable
to common stockholders |
$ |
(409 |
) |
|
$ |
(12,934 |
) |
Net loss per share
attributable to common stockholders, basic and diluted |
$ |
(0.02 |
) |
|
$ |
(6.81 |
) |
Weighted-average common
shares outstanding, basic and diluted |
23,543 |
|
|
1,899 |
|
|
Jounce Therapeutics, Inc. |
Selected Condensed Consolidated Balance Sheet Data
(unaudited) |
(amounts in thousands) |
|
|
March 31, |
|
December 31, |
|
2017 |
|
2016 |
Cash, cash equivalents
and investments |
$ |
339,961 |
|
|
$ |
257,374 |
|
Working capital |
$ |
178,852 |
|
|
$ |
61,114 |
|
Total assets |
$ |
360,822 |
|
|
$ |
271,312 |
|
Total deferred
revenue—related party |
$ |
167,514 |
|
|
$ |
187,804 |
|
Convertible preferred
stock |
$ |
— |
|
|
$ |
139,038 |
|
Total stockholders’
equity (deficit) |
$ |
177,955 |
|
|
$ |
(69,088 |
) |
Media Contact:
Katie Engleman
Pure Communications, Inc.
(919) 333-7722
katie@purecommunicationsinc.com
Investor Contact:
Beth DelGiacco
Stern Investor Relations, Inc.
(212) 362-1200
beth@sternir.com
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