Why Jounce Therapeutics (JNCE) Shares Are Soaring Today

Gilead Sciences Inc GILD and Jounce Therapeutics Inc JNCE amended their existing license agreement for GS-1811 (formerly JTX-1811), enabling Gilead to buyout remaining contingent payments potentially due under the license agreement executed in August 2020.
GS-1811, an immunotherapy, is designed to selectively deplete immunosuppressive tumor-infiltrating T regulatory cells in the tumor microenvironment.
It is currently in Phase 1 development for solid tumors.
Jounce will receive proceeds of $67 million for this transaction, and Gilead will be solely responsible for all further research, development, and commercialization of GS-1811 globally.
Gilead expects the transaction with Jounce to reduce its GAAP and non-GAAP 2022 EPS by approximately $0.04.
Jounce will no longer be entitled to receive the remaining contingent payments of up to $645 million in milestones and high single-digit to mid-teens royalties based upon worldwide sales under the original license agreement.
Price Action: JNCE shares are up 68.2% at $1.24 during the premarket session on the last check Wednesday.

Gilead Sciences Acquires Jounce Therapeutics Cancer Immunotherapy Program