US-based immunotherapy developer Jounce Therapeutics received $36m in equity funding and $225m in upfront payment from healthcare company Celgene on Tuesday as part of a strategic collaboration deal.
Jounce will also get up to $2.3bn in regulatory, development and net sales milestone payments and tiered royalties on sales outside the US.
Jounce is working on immuno-oncology treatments, and its lead drug candidate, JTX-2011, activates a protein present on certain T cells – a part of the body’s immune system – to spark an immune response to solid tumours.
The agreement with Celgene includes options on JTX-2011 and up to four other early-stage programs yet to be selected from Jounce’s platform. The deal also includes an option to equally share one checkpoint immuno-oncology program.
Once Celgene has exercised its options, Jounce will be responsible for the global development and US commercialisation of JTX-2011 and one additional program.
Celgene may opt in to any of the programs at certain development stages, from which point onwards the two companies will share US profits and losses. In the case of JTX-2011, the Jounce will take 60% of the profits, and the startup will retain 25% of profits on the first additional program.
Jounce and Celgene have agreed to equally share profits on up to three more programs. Following an opt-in, the development costs will be split consistent with rights.
Celgene will obtain exclusive international commercialisation rights for each program, providing royalties on sales to Jounce. The two partners will share global profits for the checkpoint program.
Jounce Therapeutics raised $56m in an April 2015 series B round featuring pharmaceutical firm Pharmstandard, Wellington Management Company, Redmile Group, Nextech Invest, Cormorant Asset Management, Omega Funds, Casdin Capital and Foresite Capital Management.
Third Rock Ventures initially launched Jounce Therapeutics in 2013 with $47m of series A capital.