Gilead Sciences to Acquire Remaining Rights to GS-1811 from Jounce Therapeutics

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 [e-mail]

(END) Dow Jones Newswires

December 27, 2022 17:09 ET (22:09 GMT)

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