JNCE - Earnings call transcript Q1 2018

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Operator

Good morning, ladies and gentlemen, and welcome to the Jounce Therapeutics First Quarter 2018 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

that Good Media first operator. by morning welcome the in the to issued The discuss Thank is release XXXX morning, financial Therapeutics available topics first outlines and Rich Murray, which followed who quarter section of Leading press Investors CFO, This plan results www.jouncetx.com. Jounce development to Dr. at a our clinical today. today's call preclinical and discuss who President, our you, Jounce's the release quarter and we Drapkin, our website conference is XXXX we and call. our results. will CEO quarter first Kim will activities, review financial

open We for the questions. your call will then

the Q&A Medical portion. will Chief Our Dr. during Beth Officer, Trehu, available also be

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

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

future, we views any Rich. I may these our some the now that, call disclaim update forward-looking in to specifically While will over the elect to at even With we do statements obligation change. if so to turn point

Rich Murray

everyone. morning, good and Komal, Thanks,

preclinical progress XXXX of pipeline. of time quarter continued first for our The the clinical and marked

clinical portion design JTX-XXXX several indication. such had This inhibitors. lung cancer, the naïve. across PD-X patients nivolumab also cell chosen all with include based all More open efficacy in [indiscernible]. have unmet adapted include, X/X different Platform patients standards right of they responses given several of August Phase durable as next refractory a to X/X patients overall that, we us in match date our significantly our high. landscape the of biomarker IO paths finally, to from the Since relapse X faster emerged, Phase cells exploratory inhibitors is the non-small thinking responses X with We upcoming vary and the these of Phase within In are remains tumor and in a can type. cancer, rates The that more treat, to occur key is advanced to those PD-X understanding Across Response relaxed IO our four-part or ICONIC need tumors. has therapy selection the our PD-X develop To represent increase patients combination exists, care in tumor is breast clinical and trial analysis advance let's will trial identification, path and medical additional inhibitors is a significant tumor triple a In where and and first tumor enrolled our you in from first gastric platform label IO type in ICONIC target patient difficult increasing and improved evaluating selection ICONIC cohorts with ongoing with cancer context X of our Science you data about patient the or types, treatment an types. solid to negative previous which ICONIC limited improve biomarker standard evolved cohorts, IO the this trial patients are programs predominantly use And approval. treatment right the to class the responses And the date Advanced trial progressed samples. earlier landscape are approach. the development the in start immunotherapies neck biomarker and for program. unmet the potentially but most select our initiated will aim using patterns With on ongoing target where patients Phase immune in Both on driven As advanced help move than to expressing JTX-XXXX to begin of Phase Translational other preliminary component. ICONIC the need may We an with ICONIC, morning enrolled with XXXX. portion To patients. specifically, biomarkers or more response alone head and become and informed to our enable a has tumors. greatest options rates. our are and melanoma each know, almost refractory medical discover to unmet clinical care. by therapy believe no inform also development population the as lines development are complex. standard prevalence IO up the steps. guide options. of ICOS with This patients and to goal indications analysis but the we of when medical to need

monotherapy breast Phase which published all be in both week Our and data Phase following: cohorts; and from preliminary negative triple combo of gastric types; the from X Phase includes the X tumor mono and ASCO safety combination cancer, combo efficacy XXXX in cancer cohort. next abstract X contains will data,

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

oral presentation Saturday, abstract on for X. ASCO an was Our selected June

longer additional steps with will We data term the information provide on patients, our additional and next JTX-XXXX biomarker and program. followup

escalation with year. in initiate combination JTX-XXXX trial, on dose this arm to CTLA-X ICONIC stated objectives, safety and as we Additionally, XXXX our are our track inhibitor in starting

IND PD-X inhibitor We our Now track file of in turning to other an JTX-XXXX, XXXX. our programs. some to for remain on

Our enabler pipeline. combination and of as be is will that belief a our XXXX an immunotherapy for view cancer therapy mainstay we important

candidate our tumor first coming our associated to macrophage Science Platform advance to studies. Translational continue We IND-enabling from

We year program more expect provide advances. details as this efforts the on to these

inhibitor are by driven efficacy key ICONIC an initiating our to from this inhibitor, ASCO and IND at science the focusing IND first as on of continue further our second our quarter XXXX advance macrophage the data preliminary and we by drivers the CTLA-X both enabling four JTX-XXXX candidate growth and company for value our We combination for with the next safety in with year PD-X JTX-XXXX through file studies.

in we aimed throughout targets, approach unique In Science with immuno-oncology well these has summary, positions evolving addressing on our a environment, capabilities the class at us pipeline year. biomarker important for believe drivers tumor interrogate Jounce the the more communicate to potential expect efforts, informed then We with Translational to future micro that value unmet and the first Platform needs.

call our like Drapkin, first go XXXX to turn our quarter Kim ahead. I'd Kim, Now, over financial a please discussion the to of results. CFO for

Kim Drapkin

Thank Good morning, everyone. Jounce to Rich. financial position you, continues strength. a operate from of

This incurred $XXX.X XX, operating as this million equivalents quarter. of March $XXX.X in and morning's the during investments of reported we by release, XX, cash, costs compared as decrease million to XXXX. totaled December press XXXX cash driven was As

agreement $XX.X collaboration The that non-cash recognition first on in basis the Celgene the in revenue collaboration XXXX. compared we to our during quarter $XXX due P&L, million the guidance of in new collaboration the revenue the our of to Celgene. million in with same performance of for upfront was the of reflects a revenue change guidance, straight Recall for revenue recognizing line July and our a our was the revenue currently recognition transitioned $XX.X pattern on payment new collaboration million based Turning revenue accounting XXXX. under have adoption period to received this due to from the accounting to first primarily under quarter agreement. recognizing decrease Under not activities

the share as expense loss diluted of million activities headcount, During R&D a result XXXX. compensation services higher $XX of regulatory to diluted The same increased employee Increased $XX for quarter were in to research administrative accrued basic a the for period incurred the research same Net and in of public compensation ICONIC XXXX were IND The costs an million and of first is of basic per loss $X.XX operating and or to the preferred in for to following: professional expenses period and prior compared trial, of $X.X and attributable offering. primarily as to the company. XXXX, primarily per million the compared completion result million General expenses related same stock-based first the dividends $X.XX driven period share attributable to increase million to stock compared a million in costs fees we increase of enabling net was was development or expenses quarter related clinical income in and with to to employee net XXXX. public first $X.X net expenses by XXXX as a related $X.X costs and quarter related the loss the in external $XX.X for development of our for initial JTX-XXXX. costs G&A and compensation that

the in to $XX and million collaboration expect payment. upfront Celgene approximately approximately full the be the operating expect cash million million for recognition record continue XXXX expenditures to from to XXXX to in capital of year We $XXX on burn to revenue and $XX expenses $XX million

we the be focused to we therapies fund to while our right expenditure value XX strength for the and expect balance build to bringing sufficient broad and expenses continue next sheet to momentum right the the establishing months. a least enable will focus XXXX capital Given key portfolio diversified as and Throughout will cash, existing equivalents of operating at our on we patients. us investments our on cash drivers our requirements

to to the maintain would questions. with Celgene. collaboration your we an Operator? now that, global partner like for we Lastly, call With continue strategic our productive open

Operator

first Instructions] Peaker [Operator from Boris our Thank question Cowen. comes you. with And

proceed. You may

Boris Peaker

ASCO first My for how do many see is as see of monotherapy ICONIC. what expectations I'm morning. we will question reasonable Good and you patients? group at just on patients these curious,

Beth Trehu

so I be later released is we’ll weeks think and at few more then ASCO. have discussion in provide and abstract the will has been abstract so the and this Hi, public week information an next a meaningful Beth more Trehu, after

Boris Peaker

just to question going you the going to of you data to level but follow biopsy guess you, just Got this those for that a to fraction some up be okay. curious able ASCO? and as patients that fresh what I don’t well have in the ICOS patients is of know I get assess at ICONIC is abstract, if were to will

Beth Trehu

in ASCO so data some that about will presentation. Yes, abstract the be about sharing we data and there's the that in

Boris Peaker

taking much questions. my very for you Thank Great.

Beth Trehu

You’re welcome.

Operator

from next our And comes Wainwright. question H.C. with Debjit Chattopadhyay

proceed. may You

Debjit Chattopadhyay

morning. Hey for questions. Thanks good my taking

ICOS the ICOS ICOS combo monotherapy should on just question plus and wasn’t expression, really on towards, we but understand it level, more selected that gear expression? So is plus up it three or follow a on Boris’s perspective two the study

Beth Trehu

preclinical is, and so fresh tissue in I XX what combination, for three we've agent part have based at which keep in high one higher least of exactly, the suggesting levels we we had kept did we ICOS until then plus patients. based we at ICOS the What that confirm in for did of of we then a enrollment on archival as zero data kept XX scores patients efficacy enrollment study all. of patients we the activity. target for Phase high that archival required Not ICOS IHC plus, no we cohort In and should on on with we enrichment enroll X each and the monotherapy screened two we and kind enrolling biopsy only basically ICOS Phase we single both enrolling

they ICOS at looking ICOS as ICOS the was and long combination we're expressing cells we as studies the as therapy. the In linked some in the score to in immune So scores activity tumor in then closely preclinical activity. monotherapy not saw the were

Debjit Chattopadhyay

of you and mutational do just then TNBC GC obvious in and in one really tumor mutational more Thank left burden, the your somatic think as taking some of questions. using of followup, more the don’t especially upper first relationship of these that on as opposed terms the the Great to fall corner obviously so burden, much ICOS about how so spectrum, targets for you ones? expression

Beth Trehu

selection criteria, data think, recent, an within of particularly as or actually Sure, pretty a has so burden tumor data. I nivolumab the enrichment utility that been mutational criteria

in terms of and burden work So if relationship. kind lot understand to on T-cells really that right more sided expressing as a a have not of to mutations, but tend ICOS ICOS mutational that relationship the more be actually them. higher at still data of we identified the that there's They initially tumors tumor to of lot be you levels in although range expression, in done TCGA to there's likely between look to being

Debjit Chattopadhyay

you Thank good luck. and

Operator

Jim Thanks. Fargo. And with from Wells Birchenough our next question comes

proceed. may You

Jim Birchenough

if you validate hi this, or whether think you're be enough point not to in Yes, patients we've answer but guys. a I'm development? not to ICOS this guide as got sure biomarker useful to ICONIC is going able JTX-XXXX at

Beth Trehu

Hi, pretty ICOS of a see biomarker sort small ICONIC study Jim. are exploration. Yes, there the in so is The so cohorts considered in thus far is exploratory. we early this and

think I that or biomarker. tell and the would don't to we enough wouldn't the that with is So us small numbers be no yes expect we this

efficacy. there is a and link KEYTRUDA session and with discussion at recall early plenary PD-LX [ph] you If very between the where remember the expression big about, Enevo well was ASCO some I studies,

before really PD-LX biomarker. value really a So I took it of to understood even thousands as the think patients we hundreds of

think I learn will early. the data. we We're this evaluate study pretty still to learning incoming this continue lot from So a is as and

Jim Birchenough

consider the And a in question historical chemo, guess setting there that baiter is signal, shown data? in context context think provided have or or be broader you're would I and what that we should what these other gastric I here have triple-negative drugs for positive good in cancer, how is guys here some considering terms about be you indications breast of but other you what on just at looking should think would we investigational are

Beth Trehu

an for acceptable we're for drug a both the patient factors. to profile, a a doing other to we're of for also has looking think and us We're then drugs monotherapy And know what and in space, and that are but the biomarker. combo. population safety important what at relationship looking Yes, looking for good it's kind it's this so is study of early to I demonstration that activity from really other lot a look

is meaningful about presented. after that we discussion data the So can obviously a have more

Jim Birchenough

Okay, great. questions. Thanks for taking the

Beth Trehu

You’re welcome.

Operator

question next W. with our Ulz comes Robert from Mike And Baird.

Your may proceed.

Mike Ulz

Hi the question. guys. for Thanks taking

Thanks. I along you then maybe other which the a from non-small study, neck, like ICONIC to see further of and when melanoma of can head was Just enrollment perspective the of additional or some ASCO? lung, wondering in on of cell one beyond the comment the cohorts, and of those trying we just might level sense is some get so if updates maybe

Beth Trehu

Yes, thanks Mike.

updates on to-date. a So we few giving information haven't in We'll really weeks be given any ASCO. enrollment at more

Mike Ulz

Great, thank you.

Operator

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

You may proceed.

Cory Kasimov

Hey good morning guys. Thanks for taking the questions.

relative gastric the And out response the what specifics rate ASCO? are think, could comment talk can't curious you any whether about for is one one cohort, I'm naive have First impact able to versus this of you PD-X and and you at then now, breakdown I you'd experience followup. this on PD-X if on break overall the even

Beth Trehu

in cohorts The we've the combination enrolled but combination certainly you than cohorts they I KEYTRUDA tumor if in cancer started September. that said last April. and enrolling in in provide July so so inhibitor ASCO. think once Sure, and recall approved the required quickly be the line then enrolling the to July in at monotherapy, cohorts enrolling patients third previously one started monotherapy protocol was types PD-X started but more details experience, had of PD-X And approved was a we'll our gastric

Cory Kasimov

comfortable maybe your Jim's to light IO question, target thinking recent the get into strategically as relevant is up follow how are enough or initial data Okay refractory profile how pivotal is of relapsed of studies indications? moving developments in high about is but not to a and of with up kind this much follow my you kind then in to space,

Rich Murray

not released. level obviously information. this the comment of to the we’re of point is be going mean going that I to at discussion our on once Yes, Cory it's much I easier to think have context information

Cory Kasimov

Okay, thanks.

Operator

Ladies program. in participating conclude and the This thank gentlemen, today’s does for you conference.

You may have day. now Everyone disconnect. good a

Beth Trehu

you. Thank

Rich Murray

Thank you.

Komal Joshi

you. Thank

Operator

You’re welcome.

Jounce Therapeutics (JNCE) 9 May 182018 Q1 Earnings call transcript