JNCE - JNCE STOCK NEWS

Jounce Therapeutics has terminated its proposed business combination with Redx Pharma due to a superior unsolicited acquisition proposal from Concentra Biosciences. Under the new agreement, Concentra will acquire Jounce for $1.85 per share in cash, representing a 75% premium to the stock price before the announcement. Jounce’s Board endorsed this decision as being in the best interest of its shareholders. As a result, the merger with Redx has been officially withdrawn, and Jounce will not hold a stockholder meeting regarding it. The U.K. Takeover Panel confirmed the end of the Redx Business Combination offer period.

Jounce Therapeutics (NASDAQ: JNCE) has entered a definitive merger agreement with Concentra Biosciences, LLC, offering $1.85 per share in cash, representing a 75% premium from the closing share price before the announcement. The transaction will involve a contingent value right (CVR) linked to future revenues from Jounce’s programs. Jounce’s Board has unanimously approved the merger, terminating its previous proposal with Redx Pharma. Additionally, Jounce plans to reduce its workforce by 84%, incurring approximately $6.5 million in restructuring costs. The acquisition is expected to close in Q2 2023, pending customary conditions.

On March 16, 2023, Jounce Therapeutics (Nasdaq: JNCE) reported promising outcomes from the INNATE Phase 2 trial for JTX-8064 in treating platinum-resistant ovarian cancer. A pre-planned data review revealed deep and durable responses in patients, with five out of 35 showing significant tumor reduction, all maintaining their treatment for over six months. The trial evaluates JTX-8064 as a monotherapy and in combination with the PD-1 inhibitor pimivalimab. The combination showed a promising response rate compared to standard pembrolizumab. Notably, two responders had a low likelihood of benefiting from conventional PD-1 therapy, highlighting the potential of JTX-8064.

The Board of Directors of Jounce Therapeutics, Inc. (NASDAQ: JNCE) announced an unsolicited proposal from Concentra Biosciences, LLC to acquire Jounce for $1.80 per share in cash, plus a contingent value right (CVR) for 80% of the net proceeds from certain legacy programs. Currently, Tang Capital Partners holds a 10.2% stake in Jounce. This proposal follows Jounce's previously announced all-share merger with Redx Pharma, anticipated to close in Q2 2023, pending regulatory and shareholder approvals. The Jounce Board is committed to evaluating the proposal in the best interests of all shareholders.

The proposed merger between Redx Pharma and Jounce Therapeutics aims to create a robust biotech entity called Redx Inc., listed on Nasdaq under the ticker REDX. This all-share transaction combines Redx's expertise in small molecule therapeutics with Jounce's immunotherapy capabilities. The lead project, RXC007, a selective ROCK2 inhibitor for idiopathic pulmonary fibrosis, is currently in Phase 2 trials with topline results expected in Q1 2024. In addition, the combined group will benefit from an estimated $130 million cash post-transaction and aims to leverage its clinical pipeline for future growth, navigating challenges like a significant workforce reduction at Jounce.

On February 22, 2023, Jounce Therapeutics (Nasdaq: JNCE) announced a 57% workforce reduction to refocus on its clinical programs, JTX-8064 and vopratelimab. The company stated that funding and scope limitations hindered its ability to independently advance these programs. Jounce plans to explore business development opportunities with third parties that can provide additional resources and a longer timeline for development. A non-recurring charge of approximately $11.2 million is expected in Q1 2023 related to this restructuring, with completion by March 31, 2023.

Jounce Therapeutics has amended its existing license agreement with Gilead Sciences, allowing Gilead to buy out remaining financial obligations for the anti-CCR8 antibody GS-1811, totaling $67 million. This transaction eliminates Jounce's responsibility for further research and commercialization of GS-1811, while Gilead assumes full control of the development. Although this strengthens Jounce's cash resources amid biotech market challenges, it also means Jounce forgoes up to $645 million in potential milestone payments and royalties related to future sales.

Gilead Sciences (GILD) has amended its license agreement with Jounce Therapeutics (JNCE) to buy out remaining financial obligations associated with GS-1811, an anti-CCR8 antibody designed for solid tumors. Jounce will receive $67 million and will forfeit up to $645 million in potential future payments. Gilead assumes full responsibility for GS-1811’s global development and commercialization, aiming to enhance its oncology portfolio. The buyout is expected to lower Gilead’s GAAP and non-GAAP EPS by approximately $0.04 in 2022.

Jounce Therapeutics announced new data from the INNATE and SELECT trials at the ESMO-IO 2022 Annual Congress. The Phase 1 INNATE trial showed that JTX-8064 was well-tolerated both as a single agent and in combination with pimivalimab, with a partial response in a patient with advanced biliary tract cancer. The SELECT trial demonstrated promising trends for low-dose vopratelimab combined with pimivalimab, showing an overall response rate of 40% compared to 27.8% for pimivalimab alone. Jounce plans to pursue partnerships for further development.