Stock Alert: Jounce Therapeutics Surges 50% After Inking Oncology Deal With Gilead Sciences

(RTTNews) - Shares of Jounce Therapeutics, Inc. (JNCE) surged nearly 50% on Tuesday morning after Gilead Sciences Inc. (GILD) signed an oncology deal with the company.

JNCE is currently trading at $7.15, up $2.31 or 47.73%, on the Nasdaq.

Gilead Sciences inked a deal with Jounce Therapeutics, a clinical-stage company focused on the discovery and development of novel cancer immunotherapies and predictive biomarkers, to exclusively license its JTX-1811 program.

JTX-1811 is a monoclonal antibody designed to selectively deplete immunosuppressive tumor-infiltrating T regulatory cells. The antibody remains on track for filing an Investigational New Drug application in the first half of 2021.

Under the terms of the agreement, Gilead will make a $85 million upfront payment to, and a $35 million equity investment at a premium in, Jounce upon closing.

In addition, Jounce may receive up to an additional $685 million in future clinical, regulatory and commercial milestone payments.

Jounce will also be eligible to receive royalties ranging from high single digit to mid-teens based upon worldwide sales.