Shares of Jounce Therapeutics (NASDAQ: JNCE) have jumped higher on Tuesday after Gilead Sciences (NASDAQ: GILD) announced an agreement with Jounce to exclusively license its JTX-1811 program.
The program is a “monoclonal antibody designed to selectively deplete immunosuppressive tumor-infiltrating T regulatory (TITR) cells,” the company said in its statement…
Yeah, I’m not too sure on what all of those words mean either, so let’s move on to the deal itself…
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The agreement will see Gilead pay $85 million upfront and make a $35 million equity investment, at a premium, in Jounce when the deal is closed.
Jounce could also receive up to $685 million in future milestone payments, while also receiving royalties based on worldwide sales.
Jounce stock price…
Source: TradingView
Jounce’s stock surged after the announcement and is currently trading 45% higher at $7.02 after closing Monday at $4.84. It had reached $8.57 per share earlier today.
Jounce’s Chief Executive and President, Richard Murray PhD, stated that:
“Gilead’s investment in Jounce and, specifically, JTX-1811 reinforces the value of our Translational Science Platform and differentiated and sustainable approach to novel immuno-oncology programs, focused on patients with cancer who have yet to benefit from immunotherapy. We look forward to seeing JTX-1811 progress to the clinic.”