Jounce Sells Anti-CCR8 Antibody to Gilead, Forgoing $645 Million In Milestones

Jounce Therapeutics has sold its anti-CCR8 antibody, GS-1811 (previously JTX-1811), to Gilead, transferring the fate of the development and commercialization of the solid tumor candidate to the drugmaker. Jounce will receive $67 million but will forgo up to $645 million in potential milestones as well as tiered sales royalties.

“This transaction allows us to extend our runway and remain focused on delivering meaningful and long-lasting benefits to cancer patients,” said Richard Murray, Ph.D., CEO and President of Jounce, stressing the importance of bolstering the company’s cash resources given “challenges in capital markets for biotech companies”.

The two companies originally began their collaboration on GS-1811 in 2020, which saw Gilead invest $35 million in equity and pay $85 million upfront. After successfully obtaining IND clearance for the candidate, Jounce received a $15 million milestone payment last month.

Related article: Jazz Opts Into License Zymeworks’ Solid Tumor Med With $325 Million Payment

GS-1811 Depletes Immunosuppressive T-Cells In The Tumor Microenvironment

GS-1811 is designed to deplete immunosuppressive tumor-infiltrating regulatory T-cells (Tregs) in the tumor microenvironment. The antibody achieves this by binding to CCR8, a chemokine receptor that is highly expressed in Tregs. 

GS-1811 is currently undergoing a Phase 1 study that will evaluate the candidate as a monotherapy and in combination with zimberelimab, an investigational anti-PD-1 antibody, in adults with advanced solid tumors. 

“GS-1811, with its potential new pathway of activating the immune system, gives us the opportunity to potentially change the standard of care with a treatment that works from inside cancerous cells to shrink solid tumors,” said Bill Grossman, M.D., Ph.D., Senior Vice President, Therapeutic Area Head, Gilead Oncology. 

Troubled Jounce Shores Up Cash Reserves 

In August, Jounce announced the failure of its Phase 2 trial evaluating its lead candidates vopratelimab and pimivalimab. According to the Phase 2 results, the combination therapy of the two investigational agents did not significantly reduce tumor size in a subset of non-small cell lung cancer patients (NSCLC) compared to pimivalimab alone. 

The company is also consuming cash reserves at a rapid rate, with cash burn estimates ranging from $115 million to $130 million for 2022. According to its third quarter financial report, the company has around $130.3 million worth of funds as of September 30, 2022, compared to $220.2 million as of December 31, 2021. 

Author

Joy Lin

Without knowledge, there is no imagination. Without imagination, knowledge is meaningless