Gilead investing 67 million for cancer therapy
2022.12.28 01:45
Gilead investing 67 million for cancer therapy
Budrigannews.com – (NASDAQ:) Gilead Sciences will acquire from Jounce Therapeutics (NASDAQ:) all remaining rights to an experimental cancer treatment known as GS-1811. for $67 million, the pharmaceutical company stated on Tuesday.
In a competitive market for biotech companies, the amended licensing agreement will increase Jounce’s cash resources.
Gilead’s shares fell slightly after the market, while Jounce’s shares more than doubled to $1.68.
All future global development and commercialization of GS-1811 will now be handled solely by Gilead. The altered arrangement is supposed to decrease its 2022 profit for each offer by 4 pennies on both GAAP and non-GAAP premise.
GS-1811 works by selectively depleting T-cells that suppress the body’s immune response and permit tumor growth in an early-stage trial for patients with solid tumors.
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When Gilead paid Jounce an upfront payment of $85 million in 2020, the pharmaceutical companies had agreed to work together on the development of GS-1811. Jounce was entitled to up to $685 million in milestone payments from Gilead under the initial terms, of which it has received $40 million thus far.
Jounce will no longer receive any of the therapy’s sales-based royalties or the remaining milestone payments as a result of the amendment.
