Please ensure Javascript is enabled for purposes of website accessibility

Why Jounce Therapeutics Bounced Higher Today

By Eric Volkman – Jun 15, 2021 at 6:24PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company gets a regulatory nod that will put $25 million in its pocket.

What happened

Investors were pleased with biotech Jounce Therapeutics (JNCE -2.20%) on Tuesday. So much so, that at one point they traded the stock nearly 21% higher on the day; ultimately it cooled down, but still closed the day 8% higher.

So what

The FDA cleared Jounce's Investigational New Drug (IND) application for its pipeline cancer immunotherapy JTX-1811, one of the four pipeline drugs currently being developed by the company.

This, in turn, is triggering a $25 million milestone payment from Gilead Sciences (GILD 1.49%), which holds the exclusive rights to develop and commercialize JTX-1811.

Cancer attacking an organism.

Image source: Getty Images.

The biotech said this is the fourth antibody it has managed to develop with its own resources inside a relatively narrow span of five years. CEO Richard Murray said, "The clearance of the JTX-1811 IND marks an important and validating milestone for Jounce in our approach to cancer immunotherapy treatment."

"We have now been able to bring multiple novel and diversified immunotherapy development candidates into clinical development, further enhancing our opportunity to bring benefit to cancer patients who have few options," he added.

Now what

The milestone payment from Gilead isn't the first for Jounce and its JTX-1811 program, and if all goes well it won't be the last. Gilead is on the hook for up to an additional $660 million in milestone payments that cover clinical, regulatory, and commercial events. All investor eyes will be on the clinical progress of this promising pipeline drug.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Gilead Sciences. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Jounce Therapeutics Stock Quote
Jounce Therapeutics
JNCE
$2.67 (-2.20%) $0.06
Gilead Sciences, Inc. Stock Quote
Gilead Sciences, Inc.
GILD
$63.27 (1.49%) $0.93

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.