Jounce Therapeutics Inc [NASDAQ:JNCE] is a top performer this afternoon. After trading in a range all through August, the stock has gapped up and is in gains of close to 50%.
This follows the company’s announcement that it was entering into an exclusive license agreement with Gilead Sciences for a novel immunotherapy program named JTX-1811. JTX-1811 is a monoclonal antibody that depletes immunosuppressive tumour-infiltrating T cells. It is currently under development and will have an investigational new drug application in H1 of 2020.
Commenting on the agreement, between the two companies, Jounce CEO Richard Murray stated that the investment that Gilead’s had made in the JTX-1811 program was a major boost to the company’s translational science program that is differentiated and focuses on sustainability in treating people with cancer but have not gained from immunotherapy.
He added that the company’s mission was to give patients the best immunotherapy treatments and that it remained focused on offering long-terms solutions such as JTX-1811. On his part, Gilead executive Vice President stated that they were happy to add JTX-`1811 to the company’s list of investigational immune-oncological treatments that have the capacity to improve the lives of cancer patients.
He added that JTX-1811 was complementary to the company’s other treatment candidates for cancer, and that, it had the potential to become a new class of treatment for haematological malignancies’ as well as for the treatment of solid tumours.
The excitement around this stock stems from the fact that the partnership with Gilead has validated the viability of the JTX-1811. Investors are expecting that the program will lead to a major breakthrough and add to Jounce revenues in the near-term.
What next for Jounce
Since the agreement hints at an IND application in H1 of 2021, there is bound to be a sustained interest in this stock until them. Any major breakthrough on the program could add to the momentum. Looking at it from the perspective of the overall market, the stock’s fundamentals could see it gain a massive boost from the increased positive sentiment in the market.
If a COVID-19 vaccine is approved soon, there is likely to be a major rally in the equity markets, and high potential stocks like Jounce stand to gain the most. That momentum has already started building up, and if Jounce holds on to today’s gains, it could mark the beginning of a significant uptrend.
About Jounce Therapeutics Inc
Jounce Therapeutics Inc is an immunotherapy company that makes cancer treatments. The company is based in Cambridge, Massachusetts.