Jounce Therapeutics Shares Rise 13% on IND Clearance for Cancer Treatment
June 15 2021 - 1:25PM
Dow Jones News
By Chris Wack
Jounce Therapeutics Inc. shares were up 13% to $7.88 after the
company said the Food and Drug Administration has cleared its
investigational new drug application for JTX-1811, an anti-CCR8
antibody, for which Gilead Sciences Inc. has exclusive rights to
develop and commercialize.
The IND clearance triggers a $25 million milestone payment to
Jounce.
Volume for the stock was 2 million shares at 12:50 p.m. EDT,
compared to its 65-day average volume of 332,000 shares. The stock
hit its 52-week high of $14.84 on March 11.
Jounce said JTX-1811, which will be referred to as GS-1811 in
Gilead's pipeline, is a monoclonal antibody created by Jounce and
designed to selectively deplete immunosuppressive
tumor-infiltrating T regulatory cells. The target of JTX-1811 is
CCR8, a chemokine receptor enriched on TITR cells. When JTX-1811
binds to CCR8, it targets TITR cells for depletion by enhancing an
antibody-dependent cellular cytotoxicity mechanism.
Under the terms of their September 2020 agreement, Gilead
invested $35 million in Jounce's common stock and made an $85
million upfront payment to Jounce. Jounce has led the development
of JTX-1811 through IND clearance, after which Gilead now has the
sole right to develop and commercialize the program.
After receiving the $25 million milestone payment, Jounce may
receive up to an additional $660 million in future clinical,
regulatory and commercial milestone payments and will also be
eligible to receive royalties ranging from high single digit to
mid-teens based upon world-wide sales.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
June 15, 2021 13:16 ET (17:16 GMT)
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