Skip to Content
Global News Select

Jounce Therapeutics Shares Rise 13% on IND Clearance for Cancer Treatment

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)

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.