JNCE - Earnings call transcript Q4 2017

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Operator

Good morning, ladies and gentlemen, and welcome to the Jounce Therapeutics Fourth Quarter and Full-Year 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, this conference is being recorded at the company's request. I will now turn the call over to your host, Komal Joshi, with Jounce Therapeutics. ahead. go Please

Komal Joshi

the Good Investors fourth Chrystal. call. welcome the Web is www.jouncetx.com. which to morning discuss at plan Thank The site Media today. and morning, section full-year Therapeutics release outlines release press quarter issued in conference that XXXX Jounce we we to the you, available a and topics and financial This our results of

Risk expectations, statements plans, remind to prospects Securities those Before discussed filings. SEC XXXX. we the about indicated of Actual that in discussion statements our a will would future of Reform forward-looking from Harbor forward-looking these begin, the materially constitute as statements everyone differ include important Factors purposes the and Private by various today's Litigation result our that like results the Act provisions of I may for Safe under including factors

as and as In views our addition, March only date. subsequent views relied upon today forward-looking be XXXX, statements any representing of any not of X, as our represent should

is provide Dr. may we While who key future, at CEO point Drapkin, change. will statements some update our do financial will and update today's guidance. forward-looking on review preclinical President, XXXX even these full-year the views Leading who call our to XXXX obligation Jounce's value Kim and our and discuss financial if clinical our by disclaim development in for drivers provide so Rich any specifically and results Murray, CFO, an activities, XXXX elect to our we followed

the will questions. your open then We call for

that, the over during Dr. be Officer, to Rich. pleasure to Beth turn also Medical call available Our my the With Q&A portion. is will it Chief Trehu,

Rich Murray

year. the our was some this quick everyone like year for from Thanks, start first past million a January to I’d and of XXXX, including expanded on our in for $XXX broader to and an capabilities as We maintain morning's and financial team, launched facilities strong Jounce thank to of We raising XXXX a as review our proceeds, execute call you Komal. gross mission. our support us year pipeline of to publicly a Board, company. of strategy. our in Good position traded execution important our accomplishments us. well as joining morning, IPO with and allowing our

now program front, clinical that several combination the milestones. on great Phase into and On profile, executed leverage established progress initiated the of four We monotherapy our development JTX-XXXX, and our value We lead to the around Phase X our X of plan we and identified dose, drivers. momentum safety enrollment cohorts. therapy achieving key XXXX

with JTX-XXXX. assessment. This were the triple fewest with submission Consistent an patient for types needs, cancer the least enabled tumor and ASCO fastest. abstract targets announce Meeting. gastric two with We're of pleased enrollment X our cancer of combination trial, have gastric breast one our met cohorts that options their cancer today breast has cancer of efficacy and Annual First, have of negative negative triple enrolled the the to Phase at ICONIC completion patients advanced XXXX

of previously cohorts investigator ongoing practice with consistent to faster to we the the As and support monotherapy enroll facilitate landscape. pleased the also mentioned, continue overall than combination been enrollment. We’ve with IO pace clinical trial

cohorts JTX-XXXX new in beyond we inhibitor year, to combination plan and For that a initiate and the our CTLA-X combination inhibitor the adaptive pleased announce PD-X this our XXXX. second value ongoing driver to ICONIC program expand within we're trial JTX-XXXX

a a sequence by was important the and events implicated science by undergoing from take cells was JTX-XXXX was the key had relationship there in CDX initially development positive Jounce our our this treatment work finding away subsequently Jim which Doctors platform. with prioritized leading back the patients translational cofounders: in the seminal tumor. work of in of reminder, supported if outcome As persistent that That based ICOS high target from tumor a Sharma their ICOS on supported of outcome animal on two anti-CTLA-X Pam Allison, When was treatment ICOS studies. the increase lab, the in to blood T better reduction. to brought tumor The

Now that our we're new the combination profile the we’ve inhibitor safety important in by demonstrated of in potential combination. PD-X excited studies, with this JTX-XXXX ongoing

file IND to this the internal respect for inhibitor. we our year JTX-XXXX, Third, PD-X

therapy candidate, tumor first combination IND across the development are to an our efforts an types macrophage enabler macrophages coming immunotherapy, build cancer that view belief is enabling continued tumor of our to our prevalent layer value mainstay for studies. our first-in-class driver we science important XXXX a indications the reflecting advanced candidate pipeline. into of fourth will our Immunosuppressive as programs. believed Given certain add are within in and tumor translational our from additional We’ve next immunosuppression be microenvironment. associated And platform immunotherapy

macrophages convert, immunosuppressive an engaging is response the deplete in immune to thus to goal state, not Our cancer. innate but the system immunostimulatory to

like Celgene in at two expect this We're high-level for macrophage way in on to the the laid what provide more efforts to modify details as a this focus areas. potential candidate could excited become and to the about to XXXX, program. Additionally, the Having groundwork optioned lead progresses. on I'd a program expect these tumor microenvironment

in far. and the today patterns context some evolving fact few broader the have IO We we for we as especially to emerged results second, a wanted some to moments progress five our to our context. view abstract to the for we And XXXX treatment around provide the First, Jounce JTX-XXXX. thus key of We pivotal provide believe immuno-oncology a pipeline, IO and represents ASCO landscape pace landscape. take acknowledge year submitted XXXX.

IO when First, more occur, of responses standards durable than previous they’re care.

indication. inhibitors to Second, approve vary by response rates significantly PD-X can

may represent at finally, faster using treat, a to to significant rates response type. tumor a difficult the as the also a match Fourth, may approval. in ICONIC, the be increase right select medical move relapsed we're mission to are biomarker Critical therapy patients. biomarkers Jounce, to In patients And to but response improve a approach for likely more who lines to earlier aim we need JTX-XXXX. biomarkers from to enrich benefit rates. patients patients of most you path therapy on to refractory at Third, the advanced our unmet focused up given to potentially use with right

across refractory Additionally, JTX-XXXX medical interpretation we’re we're tumor of based of shown platform, with assessing in tumor prevalence selected ICONIC methods solid those need. in The in within the In translational tumor areas data. multiple combination immune patients other patients options. alone high no to ICOS-positive we science aid the all the ICONIC, types each exploratory biomarker unmet advanced of higher treatment in nivolumab for as our on of types Phase X cells evaluating are standard preclinical with ICONIC types results. in a Using X cancer relapsed clinical and cohort parts Phase

the goal head to patient At to all in like gastric deliver as patients. the to the our Monday, combination of trial, types to breast a breast move Responses in rather naïve. forward monotherapy population efficacy job date the and combination enrolled following. patients submit as options Phase excellent driven treatment an we on the triple types data the supports. is cancer cohorts, gastric been Our to on and into context abstract, triple thank and and these to take enabling are patients. complex and care now cancer low. Phase tumor a ASCO cohorts, the moment to cohort. In execution safety who gastric almost X cancer cohorts, monotherapy IO therapy inhibitors are the either triple negative lines breast patient have combination progressed all extremely immunotherapies preliminary Investor team options. our of from XXXX patients such and negative have Phase refractory relapsed X the March to cell provide are data our lung therapy collectively contains from in available cancer with limited program patients the both but those on quickly in other PD-X move of novel populations which Cowen PD-X cancer, X us melanoma, vision neck tumor They’ve increasing our I’d includes In of additional Conference types, non-small XX, standard and and cancer, by negative for inhibitors predominantly in will done data earlier which investigators, or advanced, the

data Phase these have from not will in specific gastric X. did with the and the we efficacy preliminary we Although the negative patients cohorts who cancer provide Phase enrolled breast types tumor triple X, in

data itself, patients, provide ASCO to mature. Between also and exploratory biomarkers included in enrichment provide will longer-term abstract other well immunohistochemistry ICOS-positive as follow-up, biomarker trial. on by patient on additional we methods the therefore submitting We that information. the data additional and and as meeting the data We expect available will

our in report two platform from negative the pipeline at us we poster tumor be gastric data presentations. cancer the capabilities We additional an April preliminary important needs. potential aimed interrogate first-in-class that efforts Jounce enrollment translational as and has and well inclusion unmet the AACR the will believe highlighting involving efficacy XX, to cohorts at microenvironment, met. positions breast scientific unique approach that biomarker up for targets, informed supported of science Monday, the a is translational ICONIC Coming will with on the that work to future, and cancer continue In with triple target trial summary, we oncology addressing in

the the by the on further our to progress communicate drivers science, four of excited company and value pipeline growth throughout more expect year. are We and

Kim Now XXXX guidance. our I'd over and for to a financial results the turn please CFO, XXXX of provide to go ahead. like Drapkin, our Kim, to call discussion full-year

Kim Drapkin

to program, discovery Rich. Jounce a investments earlier, in lead and financial our including the you, to operate that maintaining advancing strong position Good advancing our outlined our from our clinical continues Rich morning, activities development Thank everyone. candidate platform. support

IPO to reported net cash, by equivalents release, we increase investments ended we million was driven proceeds in $XXX.X morning's As of cash compared totaling press for the primarily with $XXX.X million This net XXXX. and XXXX Overall, this the Jounce cash for XXXX, cash for guidance. offset with million million activities $XXX.X and utilized our investing by was and consistent financial used full-year our in from $XXX.X throughout the operating year.

Turning to to XXXX in $XXX approximately revenue million our the of XXXX. $XX for to $XX.X $XX.X received reflects $XX Celgene that the million. with stated in non-cash was collaboration million the line of in revenue XXXX. revenue is of guidance million upfront P&L, compared July recognition Recall full-year currently our previously million payment This collaboration

administrative million to clinical trial for costs and R&D higher was driven related attributable costs and facilities The is external XXXX compensation $XX.X were General and of activity. related in primarily compared incurred to $XX.X increase million the G&A to research headcount, compensation by related to employee $XX.X we expenses attributable in increase XXXX, million to research expenses increased for and for increased employee ICONIC to costs primarily XXXX. During costs manufacture of other and headcount, materials the the following: costs The result higher XXXX. expenses as trial clinical development public operating a company. in and to $XX.X million development related compared costs expenses the

increase the XXXX the as XXXX share or a for $XX.X of due post for legal previously was the diluted $X.XX the The by we stock And as full-year of to full-year And and per costs IPO in million period share of loss from compared XXXX, for shares addition, the our written days. written per in loss and per net to as or were of year XXXX a basic expenses basic accounting result a $XX the net million is ended a to million XX to XXXX expenses. decrease of result, XXXX and reported of in during full-year In share. diluted finally, $XX.X $X in postponement G&A costs for net G&A capitalized a outstanding excess offset primarily of IPO. off the increase an of loss off common

approximately Looking million million. expenses burn expect full-year ahead, expenditure to $XXX capital operating cash XXXX and $XX we be on could for the

received the of approximately from to $XX million $XX upfront XXXX record payment XXXX. collaboration to in in the expect continued We in Celgene recognition million revenue

the and we Given the that past our be very requirements continue strength capital XX the to our expect We're by expenditure to months. sufficient balance least cash the us sheet, and next encouraged expenses during investments to at year. enable cash, equivalents operating we’ve made for fund of will progress existing our

XXXX, build value we to while portfolio towards we momentum, to a on diversified this broad the aim to work establish right points on focused throughout key the As and inflection right bringing therapies patients. continuing

continuing strategic we turn with over Rich. productive to are this and look We our partner also Celgene established forward now call global with pleased I to will working collaboration. the relationship that, the back have With

Rich Murray

Kim. Thanks,

correct think may is statement have I I a about maybe said I abstract. take the will that do a incorrectly think moment ASCO what to I

X back did will the have in breast So safety from all specific to triple these that cohorts from Phase negative not I’m and combination both breast tumor combination who triple and provide X, as data And in and tumor the negative in cancer although we combo Phase the abstract. the efficacy types Phase cancer efficacy through gastric to cancer patients preliminary data monotherapy preliminary monotherapy X includes the types, go from going XXXX X. with X data ASCO Phase we cohort. did enroll Phase gastric cohorts, which

exploratory on trial. methods biomarkers provide We data available by as included will in the ICOS-positive as immunohistochemistry enrichment other we that and patient also well

comments. translational I’d see Okay we've how none science, we correction, month hard just an employees a great reflects we’ve our today. our with X-year Jounce's first-in-class really our culture Jounce of would believe to And opened with a years through the five Last that working closing remarkable platform, made focus approach group are to that come. developed develop team immunotherapy far what of have on differentiated immunotherapies, marked In and the labs and dedicated strong pipeline in some building establishment possible successfully without XXXX anniversary. it's put which been a that to We work. like exceptional innovative who of science

multiproduct aim build we company. a to, sustainable, to alluded Kim As

you to like begins cancer helping Our I’d is our in our patients patients. novel and of and enrolled course, patients goal have thank to this immunotherapies foremost who to first deliver take these with And mission to opportunity excited the come the your look trial. We'd from open I to with forward and beyond. and now I'm to in sharing what's more call to our XXXX Jounce, our team and questions. at Operator? like about for approach

Operator

Jim Instructions] Fargo Birchenough question first our from Securities. comes [Operator Thank And you. from Wells

Your line open. is

Jim Birchenough

two of expression could have they event? you ICOS those the program, line you to have those are as two XXXX finally, Yes. do are all of of, in bit XXXX Hi, and Congrats we sense and when ASCO levels triple is? might inhibition across us what second screening Monday, tumors in the cohorts, a rate more breast to a remind you’ve progress what a you what PD-X gone on see to Celgene, could by would sense for gastric of cohorts? update. preview us give triggers that, that seen of and opt-in the a guys. just the might [ph] with for PD-X then, itself negative question, of you give the some And what as expectations on looking for through Is success then, cancer, just with or think a you and happen? you Maybe ICOS-positive expected what what threshold part overall and the say if were Thanks. forward by general that the do And

Beth Trehu

is then I over Rich. turn This the Jim. Beth to it and first Thanks, two take will Trehu. questions,

to was breast we we approval you Cowen rate cancer, PD-X approved on in color an So, key responses. us of think X% of will third have response line drug more obviously inhibitor most on no We focus response rate. at in is It’s rates data what durability But the few rate, important triple mentioned, to just like, is response the the but negative know, and success are points. There a quality about KEYTRUDA acceptable obviously as KEYTRUDA in needs the providing response for be the profile. is safety for terms gastric the XX%. immunotherapy not there of the recent cancer a looks of any based as since but importance

of patients. enhances have meaningful will a obviously because helps informs to and identify approach, similar data the drug patients response have our We in our the we that to also relevant be biomarker compared for to understanding stage activity, of efficacy drug, benchmark of looking and and demonstration mechanism to clinically the biomarker

questions. -- that’s those I your were what think two

So I over will XXXX regarding turn Rich, program. the to, it

Jim Birchenough

Great.

Rich Murray

Okay, great.

have option the ICONIC study. Jim, think mentioned Celgene, -- the the is we terms the agreement. For tied option The predetermined were we I in to

on not timing got relationship option the Celgene, exact with contract. and has are specificity the that. a providing agreed We been We’ve good that beyond very criteria to in

Jim Birchenough

saw gastric then I screening on would expect negative ICOS And for you missed positivity and and just ICONIC? what the it, guys Thanks. you rate that for of on triple

Beth Trehu

Yes. Thanks, Jim.

of are terms have very with Sorry tumor much the rate expectations. enrichment line archival actually patient we in in about our at what that. the in which the Yes, look first samples been so

are little triple cancer a in tumor the information patients samples and samples and fresh at and consistent then well will gastric the been translational And from in positivity lower RNA tumor with providing not cancer about expectations the our work XX% have tumor Some biopsies in XX% high on looking both be estimated we bit to to looking at We archival be trial. actual ICOS than negative breast our data. that. the ASCO in as

Jim Birchenough

Thanks for the taking Great. questions.

Operator

from from question And our next you. Kasimov Thank J.P. comes Morgan. Cory

open. is line Your

Shawn Fu

to Cory. presentation? Thanks versus more maybe what the in guys. progress. follow data just that somewhere and a that Hey, to mentioned abstract? the XX just see submitted be around congrats Would little ASCO that XX the Can previously weeks actual guys we if will provide that is patients X see to that my and was by you the to know was So up Shawn we you the be that wondering cohort, on there for on per. question the taking detail would will data time? I This ASCO in for in bit abstract regards

Beth Trehu

Thanks.

per cohorts patients enrollment XX for the target cohorts combination for So, yes, was cohort. the the

enrollment did sure ICOS try we have make Although we some had subjects. sufficient over to high to

data enrollment the So abstract triple gastric for drove the what for and the negative the the of breast completion combo patients. was target cancer

will I or triple combo study. who then accepted, we will additional least Rich the And negative they’re the abstract. parts XX was not we the The a with as patients either have as at abstract make single on populations, you the drove to And to cohort wanted additional of surprising I cancer or have these single patients to we complete, if data think, agent have by as the actually time some data from in mentioned in as have as based will have we on assessment, the enrollment patient concluded as one we at we mentioned, what patients ICOS sure efficacy So sufficient breast XX patients of also follow-up it's in same cancer, not gastric high data enrolled least since that’s mentioned, X the -- we of very the least combination. agent just and the in biopsy. with a at we be see patients and But combination. we will number have include because will robust that agent longer-term the data to cohorts it's presentation, what Phase important single Rich the fresh think in data mono over it's the gastric any and cohorts the because from include then enrolled as complementary had

enrollment XX more than patients of itself. ASCO the by So expect target you can

Shawn Fu

then initially? for in the why PD-X perfect. initial sort of ICOS would foray CTLA-X I of done initially, was go the decided kind work sort am the seminal of clinical backdrop And forward curious given combination in that to Okay, of [ph] versus curious, CTLA-X with then just

Beth Trehu

Yes, a good question. that’s

initially CTLA-X were best the a safety lot by to were think concerns fact combination. chance we terms the our safety, sure that and the about I make of there more with inhibitors, that that wanted profile driven we in giving a was possible of the safe drug

beneficial. and already importantly we the started clearly could secondly, we inhibitors, very data the be when that think, dominating trial, And thought then the combination I suggested had so market, we PD-X that important. we're was preclinical the that

really to with we wanted inhibitors. start PD-X So

a on new at profile with I think PD-X that we were the inhibitor, CTLA-X we before embarking in wanted but make inhibitors to intended any combination combinations. always with to look safety combination sure the comfortable with

Shawn Fu

Thanks, my guys. Thanks perfect. Okay, for question. taking

Operator

Thank you.

comes Our from next Robert Mike Baird. from W. Ulz question

open. is line Your

Mike Ulz

expect Hey, the mentioned for what at you color the And providing of terms of guys. a ASCO data Thanks in data, for all and on thanks just taking question, some ASCO. biomarkers. the on to number

-- biomarkers maybe curious you what more Just bit if give more specific can give should little us a expect? we on little

Beth Trehu

Yes.

always see some to the but trial, and had as certain our can biomarker about in taking the back trial. biomarkers how the data drug. biomarkers to were prospectively reverse So translation are and had true we included ICOS interrogating driven in data we've addition pharmacodynamic But approach, in doing IHC, what we call we our we it and emerges, learn to more the going that

So some we go developed before, not sharing things. then more be some And that things about actually new I'm to that new -- we meeting. have than the going will we also that, but talked yes at but into we’ve details were biomarker methods that any

Mike Ulz

think as with get slip Okay. be and we of see And make melanoma then, the and data the think will preliminary waiting head it. additional sort respect across that that, next some do cohorts before in all that is in XXXX into to cohorts you forward? you you moving decisions XX? on you to lung data then, neck, And any about can or steps, study ICONIC and Got just

Beth Trehu

to trial with which design, steps that the example target has right of modifications on a we’re medical of about trials as of inhibitor. the in will and the is cohorts we've so our adaptive enrollment when data, terms talked And also set can really an by to ICONIC the submit we So, meeting. the Rich at then next least CTLA-X efficacy of not we assessment to that have of a addition guiding on data preferably based available. as mentioned, to make emerging those patients, we and It's when exactly sufficient be as now all so data one driven meet

more of react based data as us the will allows a we give adapt will and So emerging from continue it lot guidance progress. we and flexibility on and things to study

Mike Ulz

Thanks the for Great. taking questions.

Operator

you. Thank

Our comes Peaker. Boris from next question

Your line is open.

Boris Peaker

Good curious versus fresh ASCO? ICOS the is just first I’m have And biopsy you level many will biopsy? expression how question archival fresh morning. comparing in at patients, have will My data

Beth Trehu

Yes.

So, we of to patients have not on well, expect data report. fresh biopsy -- the whom on of all all we if most

with Sometimes there challenges the are just of quality the biopsy.

will we on we So a valuable tissue. between have data correlation for yes, the everybody And, whom biopsies. the have we the will fresh presenting be in archival

Boris Peaker

And terms how haven't monotherapy monotherapy continue is -- in patients, patients much forward is to many do that, are monotherapy you talked you. Got you see? or about in of in planning And only to but going we combo? general treated anticipate

Beth Trehu

I cohorts the of in lagged terms a enrollment. have combo bit the So behind monotherapy mentioned, as cohorts

we I I And data have the gastric complementary about therapy guidance our again, as I data. data data. more monotherapy as cancer emerges think we provide future will to sufficient combination the said, and to will think present -- plans as its we

Boris Peaker

you Thank questions. my for Great. taking

Operator

Thank you. Wells Jim follow-up Fargo we And from a from Securities. [Operator have Birchenough do Instructions]

open. is line Your

Jim Birchenough

follow-ups. Yes. Hi, guys. Thanks for taking the

seen in just we you’ve do the patients along that time repeat expect a the scans a of So is all ASCO ASCO, hypothesis Thanks. patients? the will of your for then just to to see confirm, sure the is, different on At over extent patients? ICOS-positive make understand would other to expect presentation. we further the the it final treatment based preclinically? be are you then to going on priori just And response And part course, higher to rate want question, response what improve rates time I

Beth Trehu

Okay.

the least will what of think the to over the [indiscernible] data enroll patients early And two efficacy the about abstract. efficacy So have we follow-up time. are have not at who ASCO. patients who who see to longer-term later may by have may would most we -- expect included certainly I certainly patients time There but in too assessments of it's on talk two assessments, at

and will in will until we do we submission, at I because by you biomarker did think the So biopsy we data to ASCO. that’s actually than see we present reiterate front not have data see for time of a but But what wait abstract we time want lot actually of the expect the on what ASCO. more present what can we to I particularly biomarker the true will the fresh in ASCO abstract, have

So relationship archival fresh a better response. to picture will also much we have as and mentioned I of think the I relationship between and the

Regarding improve our predictive as our incorporated we've help that certainly has to But can -- in study. of we bio been number hypothesis you a -- biomarkers rate. hypothesis, the response know potential biomarker enrichment

potentially And I so we point included data exploratory learn study. previously is will investigation lot lot best that about the as other predictive a we think have the stated, in going study We the we’ve make and from sufficient a with have we in when determination we which will a there's a the biomarker. we of biomarkers that start IHC, but

Jim Birchenough

a asking you one that going ICONIC is of you if these design, possibilities flexibility you’re And and one further final could saying options in a to study, ICONIC of then registration the that one question just is if signal, not need seeing study? on expand not you’re the the potentially but enabling whole design, to maybe is -- and cohorts new convert of adaptive the to or to, would start

Beth Trehu

Sure.

So, existing can into has cohorts, been absolutely written and expand study we since beginning. the the that's

and line of of think, therapy you that lot cohort convert which a on pursue. a and the to terms registration study, of the I depends path into in which potential

the relapsed the to in which that’s likely is PD-X situation that, trial to path could trial. that give to lines flexibility to situation us or require Any a the refractory choose a thus the a So potentially inhibitor quickly in But we within control to more there's it's towards failure trial. ICONIC the we in a patients, required, relevant population, into if move you no move move registration do that’s forward path. ICONIC control feel if group new therapy group us earlier enable of

Jim Birchenough

follow-ups. the taking for Thanks Great.

Beth Trehu

You’re welcome.

Operator

gentlemen, may And you. phone from the Have and does wonderful today's I’m line. and This a conference. program, participating further Thank in conclude you questions you Ladies our day. showing disconnect. for thank no all

Jounce Therapeutics (JNCE) 8 Mar 182017 Q4 Earnings call transcript