By Michael Dabaie

 

Jounce Therapeutics Inc. shares were up 54% to $7.45 in morning trading.

Gilead Sciences Inc. earlier said it agreed with Jounce, a clinical-stage company focused on cancer immunotherapies and predictive biomarkers, to exclusively license its JTX-1811 immunotherapy program.

The antibody remains on track for filing an investigational new drug application in the first half of 2021, Gilead said.

Gilead will make an $85 million upfront payment to Jounce and a $35 million equity investment at a premium, the company said. Jounce may receive up to an additional $685 million in future clinical, regulatory and commercial milestone payments, Gilead said.

Jounce will be eligible to receive royalties ranging from high-single digit to mid-teens based upon worldwide sales.

Jounce will lead development of JTX-1811 through IND clearance, and thereafter, Gilead will have the sole right to develop JTX-1811.

Gilead said it expects the transaction to close in the second half of 2020.

"JTX-1811 is complementary to our other oncology candidates and has the potential to be first in a new class of therapies as a treatment for people with both solid tumors and hematological malignancies," said William A. Lee, executive vice president of research at Gilead.

Gilead shares were down 1.7% to $65.60.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

September 01, 2020 10:06 ET (14:06 GMT)

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