Jounce Therapeutics Reports Fourth Quarter and Full Year 2018 Financial Results
- New data from two programs to be presented at AACR -
- New Phase 2 studies to be initiated in 2019 supported by established safety from dose escalation cohorts of vopratelimab (JTX-2011), with ipilimumab and with pembrolizumab -
- Ended 2018 with
- Company to host conference call and webcast today at
“2018 was an important year of learnings and significant progress for Jounce. We accomplished several milestones, most notably data readouts and analyses from the Phase 1/2 ICONIC trial for vopratelimab, formerly called JTX-2011, at
“In 2019, we plan to advance our first-in-class highly selective antibody JTX-8064, which targets the LILRB2 receptor on macrophages, by filing an IND and initiating a Phase 1 trial, supporting our goal of three immunotherapies in the clinic this year, while we continue to progress novel discovery programs toward development. We remain committed to advancing our pipeline through our unique translational approach and are convinced, more than ever, that the potential for durable survival benefit in the next generation of immunotherapies will require investment in understanding translational mechanistic science and biomarkers from the clinic,” Dr. Murray continued.
- Combination safety data supports new Phase 2 studies: Dose escalation combination cohorts with ipilimumab and with pembrolizumab began enrollment in
June 2018. Safety was acceptable with ipilimumab and with pembrolizumab, and these data support the next stage of clinical development.
- Key data readouts presented at
ASCOand SITC2018: Jounce presented Phase 1/2 ICONIC data at the American Society for Clinical Oncology( ASCO) Annual Meeting in June 2018and the Society for Immunotherapyof Cancer’s ( SITC) Annual Meeting in November 2018.
Tumor reductions were associated with an
ICOSpharmacodynamic biomarker, specifically, emergence in the peripheral blood of a population of ICOShi CD4 T cells, which have the characteristics of activated CD4 T effector cells. In a separate study, these cells were not identified in patients treated with PD-1 inhibitor monotherapy, including responders. This pharmacodynamic biomarker has been critical in the interpretation of Jounce’s clinical data and in informing the planned Phase 2 clinical studies.
Additionally, in a separate analysis, vopratelimab was demonstrated to activate CD4 T cells only if they express high levels of
ICOSper T cell. The association of the emergence of ICOShi CD4 T cells, clinical benefit and the requirement for these cells to be present for vopratelimab activity has led to two new development paths: first, vopratelimab in combination with ipilimumab and, second, patient selection with potential new predictive biomarkers that may enrich for patients whose CD4 T cells are primed to respond to vopratelimab and, therefore, may be more likely to benefit from treatment.
- Planned initiation of Phase 2 clinical studies: Based on reverse translational work to date, Jounce plans to initiate additional Phase 2 clinical studies, including one or more new dosing schedules and combination sequences, in 2019 and expects to report preliminary efficacy data from these additional clinical studies in 2020.
- Upcoming presentations of new data at AACR 2019: In
April 2019, Jounce will present two posters on vopratelimab at the American Association for Cancer Research(AACR) Annual Meeting. One poster will contain clinical data showing improved progression free survival and overall survival in ICONIC patients who have emergence of these ICOShi CD4 T cells and the other will provide more details about the characteristics of these cells.
- Initiated Phase 1 clinical trial and completed enrollment of first cohort: In late 2018, Jounce advanced JTX-4014, its PD-1 inhibitor, into a Phase 1 clinical trial and completed enrollment in the first cohort. Jounce remains on track to identify the recommended Phase 2 dose in 2019.
- Initiated IND-enabling studies: In early 2018, Jounce announced the advancement of its first tumor-associated macrophage candidate, JTX-8064, into IND-enabling studies. JTX-8064 targets LILRB2, a macrophage target which Jounce believes may act as a macrophage checkpoint. It is the first tumor-associated macrophage candidate to emerge from Jounce’s Translational Science Platform. Jounce expects to file an Investigational New Drug (IND) application and initiate a Phase 1 clinical trial of JTX-8064 later this year.
- Upcoming presentation of new data at AACR 2019: In
April 2019, Jounce will present a poster on the preclinical evaluation of JTX-8064 and its role in reprogramming tumor-associated macrophages within the tumor microenvironment.
Fourth Quarter and Full Year 2018 Financial Results:
- Cash Position: As of December 31, 2018, cash, cash equivalents and investments were
$195.9 million, compared to $257.9 millionas of December 31, 2017. Cash was utilized for operating costs incurred during the year, offset by the receipt of state and federal income tax refunds. This is in line with the 2018 cash guidance previously provided of ending cash of $185.0 million to $195.0 million.
- Collaboration Revenue: Collaboration revenue was
$20.1 millionfor the fourth quarter of 2018, compared to $13.0 millionfor the same period in 2017 and $65.2 millionfor the full year 2018, compared to $71.6 millionfor the same period in 2017. Collaboration revenue represents non-cash revenue recognition relating to the $225.0 millionupfront payment received in July 2016upon the execution of Jounce’s global strategic collaboration with Celgene.
- Research and Development (R&D) Expenses: R&D expenses were
$16.6 millionfor the fourth quarter of 2018, compared to $18.6 millionfor the same period in 2017. The decrease in R&D expenses for the fourth quarter of 2018 was primarily due to $2.8 millionof decreased external research and development costs, offset by $1.7 millionof increased external clinical and regulatory costs associated with vopratelimab as well as the initiation of the JTX-4014 Phase 1 clinical trial during the fourth quarter of 2018.
R&D expenses were
$70.1 millionfor the full year 2018, compared to $67.8 millionfor the same period in 2017. The increase in R&D expenses for the full year 2018 was due to $3.1 millionof increased employee compensation costs, including $1.7 millionof increased stock-based compensation expense, and $3.0 millionof increased external clinical and regulatory costs associated with vopratelimab as well as the initiation of the JTX-4014 Phase 1 clinical trial, offset by $2.1 millionof decreased external research and development costs and $2.0 millionof decreased lab consumables purchases.
- General and Administrative (G&A) Expenses: G&A expenses were
$6.6 millionfor the fourth quarter of 2018, compared to $6.0 millionfor the same period in 2017 and $26.4 millionfor the full year 2018, compared to $23.1 millionfor the same period in 2017. The increase in G&A expenses for both the fourth quarter of 2018 and the full year 2018 was primarily due to increased employee compensation costs.
- Net Loss: Net loss was
$2.0 millionfor the fourth quarter of 2018, or a basic and diluted net loss per share attributable to common stockholders of $0.06. Net loss was $9.4 millionfor the same period in 2017, or a basic and diluted net loss per share attributable to common stockholders of $0.29. The decrease in net loss and net loss per share attributable to common stockholders is primarily attributable to the increase in collaboration revenue and the decrease in operating expenses from the fourth quarter of 2017 to the fourth quarter of 2018. Net loss was $27.4 millionfor the full year 2018, or a basic and diluted net loss per share attributable to common stockholders of $0.84compared to $16.4 millionfor same period in 2017, or a basic and diluted net loss per share attributable to common stockholders of $0.57. The increase in net loss and net loss per share attributable to common stockholders is primarily due to the decrease in collaboration revenue and the increase in operating expenses from 2017 to 2018.
Based on its current operating and development plans, Jounce expects cash burn on operating expenses and capital expenditures for the full year 2019 to be approximately
Given the strength of its balance sheet, Jounce expects its existing cash, cash equivalents and investments to be sufficient to enable the funding of its operating expenses and capital expenditure requirements for at least the next 24 months.
Conference Call and Webcast Information:
Cautionary Note Regarding Forward-Looking Statements:
Various statements in this release concerning Jounce’s future expectations, plans and prospects, including without limitation, Jounce’s expectations regarding operating expenses, capital expenditures, collaboration revenue and other financial results; the timing, progress and release of data for Phase 2 clinical studies of vopratelimab; the timing, progress and results of the Phase 1 trial of JTX-4014; the filing of an IND and initiation of a Phase 1 trial of JTX-8064 and the timing, progress and results of preclinical studies and clinical trials for Jounce’s product candidates and any future product candidates may constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward looking statements, which often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “on track,” “plan,” “predict,” “target,” “potential” or similar terms, variations of such terms or the negative of those terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, Jounce’s ability to successfully demonstrate the efficacy and safety of its product candidates and future product candidates; the preclinical and clinical results for its product candidates, which may not support further development and marketing approval; the potential advantages of Jounce’s product candidates; the development plans of its product candidates and any companion or complementary diagnostics; actions of regulatory agencies, which may affect the initiation, timing and progress of preclinical studies and clinical trials of Jounce’s product candidates; Jounce’s ability to obtain, maintain and protect its intellectual property; Jounce’s ability to manage operating expenses; Jounce’s ability to maintain its collaboration with
Jounce Therapeutics, Inc.
Consolidated Statements of Operations (unaudited)
(amounts in thousands, except per share data)
|Three Months Ended
|Collaboration revenue—related party||$||20,100||$||12,989||$||65,201||$||71,644|
|Research and development||16,644||18,557||70,052||67,798|
|General and administrative||6,601||5,984||26,443||23,061|
|Total operating expenses||23,245||24,541||96,495||90,859|
|Other income, net||1,151||703||3,961||2,808|
|Loss before provision for (benefit from) income taxes||(1,994||)||(10,849||)||(27,333||)||(16,407||)|
|Provision for (benefit from) income taxes||46||(1,485||)||46||36|
|Reconciliation of net loss to net loss attributable to common stockholders:|
|Accrued dividends on Series A convertible preferred stock||—||—||—||(268||)|
|Accrued dividends on Series B convertible preferred stock||—||—||—||(318||)|
|Accrued dividends on Series B-1 convertible preferred stock||—||—||—||(208||)|
|Net loss attributable to common stockholders||$||(2,040||)||$||(9,364||)||$||(27,379||)||$||(17,237||)|
|Net loss per share attributable to common stockholders, basic and diluted||$||(0.06||)||$||(0.29||)||$||(0.84||)||$||(0.57||)|
|Weighted-average common shares outstanding, basic and diluted||32,750||32,234||32,567||30,055|
|Jounce Therapeutics, Inc.
Selected Consolidated Balance Sheet Data (unaudited)
(amounts in thousands)
|Cash, cash equivalents and investments||$||195,864||$||257,851|
|Total deferred revenue—related party||$||97,872||$||116,160|
|Total stockholders’ equity||$||104,129||$||167,109|
The Yates Network
Source: Jounce Therapeutics, Inc.