US-based immuno-oncology company Jounce has filed to raise up to $75m in an initial public offering on Nasdaq that will provide an exit to pharmaceutical firm Celgene.
Founded in 2012, Jounce is developing immunotherapies that will target a range of the immune system’s cellular components together with non-immune cells in the tumour itself.
Jounce will use the IPO proceeds to advance its lead product candidate, a monoclonal antibody called JTX-2011, through phase I/II trials.
The rest of the proceeds will support the progress of another antibody, JTX-4014, through the investigational new drug process, and will be used to strengthen Jounce’s translational science platform as well as its research and development pipeline.
Celgene owns an 11.4% share of Jounce through its Celgene Switzerland subsidiary, having invested $36m in July 2016 as part of a strategic collaboration agreement that also included $225m in upfront payment and potentially up to $2.3bn in milestone payments and tiered royalties.
Third Rock Ventures, the venture capital firm that launched Jounce with a $47m series A investment in 2013, remains majority shareholder with a 53.5% stake. Fidelity Investments, part of the Fidelity financial group, holds 12.1%.
Pharmaceutical company Pharmstandard, Wellington Management Company, Redmile Group, Nextech Invest, Cormorant Asset Management, Omega Funds, Casdin Capital and Foresite Capital Management all took part in Jounce’s $56m series B round in 2015 but own stakes lower than 5%.
JP Morgan Securities, Cowen and Company, Wells Fargo Securities and Robert W. Baird are underwriters for the offering.