Gilead Sciences to Acquire Remaining Rights to GS-1811 from Jounce Therapeutics
December 27 2022 - 5:24PM
Dow Jones News
By Denny Jacob
Gilead Sciences Inc. on Tuesday said it will acquire all
outstanding rights of Jounce Therapeutics Inc. to GS-1811 following
an amended license agreement for the antibody.
The biopharmaceutical company said the amended license agreement
for GS-1811 enables it to buy out remaining contingent payments
potentially due under the agreement struck in August 2020. Certain
operational obligations of the parties related to GS-1811 have also
been terminated as part of the transaction, Gilead said, which will
also acquire certain related intellectual property.
Jounce will receive $67 million for the deal and is no longer
entitled to receive the remaining contingent payments of up to $645
million in milestones and royalties under the original agreement,
Gilead said.
Foster City, Calif.-based Gilead said it expects the transaction
to reduce its 2022 earnings per-share and adjusted earnings
per-share by 4 cents.
GS-1811 is in Phase 1 clinical development as a possible
treatment for patients with solid tumors, Gilead said.
Shares of Jounce surged 74% to $1.28 in after-hours trading. The
stock, which closed Tuesday down 6.7% to 74 cents, is down roughly
91% on the year. Shares of Gilead were flat in after-hours trading
and are up about 17% on the year.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
December 27, 2022 17:09 ET (22:09 GMT)
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