(Reuters) – Gilead Sciences will purchase all of the remaining rights for an experimental most cancers remedy, GS-1811, from Jounce Therapeutics for $67 million, the drugmaker stated on Tuesday.
The amended licensing deal will bolster Jounce’s money sources in a difficult marketplace for biotech firms.
Shares of Jounce greater than doubled to $1.68, whereas Gilead’s shares fell marginally in after market buying and selling.
Gilead will now be solely liable for all additional improvement and commercialization of GS-1811 globally. The amended deal is predicted to cut back its 2022 earnings per share by 4 cents on each GAAP and non-GAAP foundation.
GS-1811 is at the moment being evaluated in an early-stage trial for sufferers with strong tumors and works by selectively depleting T-cells that suppress the physique’s immune response and permit tumors to develop.
In 2020, the drugmakers had agreed to collaborate on improvement of GS-1811, when Gilead made an upfront cost of $85 million to Jounce. Beneath the preliminary phrases, Jounce was eligible to stand up to $685 million in milestone funds from Gilead, of which it has acquired $40 million to this point.
With the modification, Jounce will not obtain the remaining milestone funds or any of the sales-based royalties for the remedy.
(Reporting by Bhanvi Satija in Bengaluru; Modifying by Shailesh Kuber)