30 December 2022 - - US-based biopharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) and immunotherapy company Jounce Therapeutics, Inc. (NASDAQ: JNCE) have amended their existing license agreement for GS-1811 (formerly JTX-1811), enabling Gilead to buy out remaining contingent payments potentially due under the license agreement executed in August 2020, the companies said.

As part of the transaction, certain operational obligations of the parties related to GS-1811, an anti-CCR8 antibody, set forth in the license agreement have also been terminated.

Gilead will acquire certain related intellectual property, including all outstanding rights of Jounce to GS-1811, pursuant to the transaction agreement.

GS-1811, a potentially first-in-class immunotherapy, is designed to selectively deplete immunosuppressive tumor-infiltrating T regulatory cells in the tumor microenvironment and is currently in Phase 1 clinical development as a possible treatment for patients with solid tumors.

Jounce will receive proceeds of USD67 m for this transaction, and Gilead will be solely responsible for all further research, development and commercialization of GS-1811 globally.

Beginning in the first quarter of 2022, consistent with recent industry communications from the US Securities and Exchange Commission, Gilead no longer excludes acquired IPR&D expenses from its non-GAAP financial measures.

We expect the transaction with Jounce to reduce Gilead's GAAP and non-GAAP 2022 EPS by approximately USD 0.04.

Jounce will no longer be entitled to receive the remaining contingent payments of up to USD 645m in milestones and high single-digit to mid-teens royalties based upon worldwide sales under the original license agreement.

Jounce Therapeutics, Inc. is a clinical-stage immunotherapy company dedicated to transforming the treatment of cancer by developing therapies that enable the immune system to attack tumors and provide long-lasting benefits to patients through a biomarker-driven approach.

Jounce currently has multiple development-stage programs ongoing while simultaneously advancing additional early-stage assets from its robust discovery engine based on its Translational Science Platform.

Jounce's highest priority program, JTX-8064, is a LILRB2 receptor antagonist shown to reprogram immune-suppressive tumor-associated macrophages to an anti-tumor state in preclinical studies.

JTX-8064 is being investigated alone and in combination with pimivalimab (formerly JTX-4014), Jounce's internal PD-1 inhibitor, in one monotherapy and seven indication-specific combination therapy cohorts in the Phase 1/2 INNATE trial and is currently enrolling patients with advanced solid tumors in the Phase 2 portion of the study.

Jounce's most advanced product candidate, vopratelimab, is a monoclonal antibody that binds to and activates ICOS, and is currently being studied in the SELECT Phase 2 trial.

Pimivalimab is a PD-1 inhibitor intended for combination use with Jounce's broader pipeline.

Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people.

The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, and cancer.

Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California.