Gilead to buy remaining rights for GS-1811 from Jounce Therapeutics for $67M

Gilead Sciences (GILD) and Jounce Therapeutics (JNCE) "amended their existing license agreement for GS-1811, enabling Gilead to buy out remaining contingent payments potentially due under the license agreement executed in August 2020. As part of the transaction, certain operational obligations of the parties related to GS-1811, an anti-CCR8 antibody, set forth in the license agreement have also been terminated. Gilead will acquire certain related intellectual property, including all outstanding rights of Jounce to GS-1811, pursuant to the transaction agreement. GS-1811, a potentially first-in-class immunotherapy, is designed to selectively deplete immunosuppressive tumor-infiltrating T regulatory cells in the tumor microenvironment and is currently in Phase 1 clinical development as a possible treatment for patients with solid tumors. Beginning in the first quarter of 2022, consistent with recent industry communications from the U.S. Securities and Exchange Commission, Gilead no longer excludes acquired IPR&D expenses from its non-GAAP financial measures. We expect the transaction with Jounce to reduce Gilead’s GAAP and non-GAAP 2022 EPS by approximately $0.04. Jounce will no longer be entitled to receive the remaining contingent payments of up to $645M in milestones and high single-digit to mid-teens royalties based upon worldwide sales under the original license agreement."