Jounce Therapeutics Inc. JNCEshares jumped more than 70% in after-hours trading Tuesday, following an announcement that Gilead Sciences Inc. GILDwould completely acquire rights to an immunotherapy drug from Jounce. Gilead said it would buy out its remaining obligations under a licensing agreement executed in 2020 between the two companies and acquire intellectual property and rights to the cancer treatment, known as GS-1811. Jounce will receive $67 million, and Gilead will be solely responsible moving forward for the drug, which is in Phase 1 clinical development for treatment of solid tumors. “It was important for Jounce at this time to bolster our cash resources, given challenges in capital markets for biotech companies,” Jounce Chief Executive Richard Murray said in a statement. Jounce stood to receive milestone payments up to $645 million as well as royalty payments in the future if the drug proved successful. Gilead stated that annual earnings would be about 4 cents less this year than previously stated due to incurring expenses related to the drug. Gilead shares were unchanged in the extended session.
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