JNCE - Earnings call transcript Q3 2018

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Operator

Good morning, ladies and gentlemen, and welcome to the Jounce Therapeutics Third 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 third operator. morning, welcome the www.jouncetx.com. in the to issued The discuss Thank is of release XXXX morning, our financial Therapeutics available topics outlines which quarter press Investors This plan results Jounce to a today. and you, the release, and we section conference we at call. website

CMO, Rich Dr. be Drapkin, Murray, call quarter Trehu, our on will our followed results. CEO operational by President, lastly, highlights today's financial XXXX discuss our will who will will Dr. Beth discuss who third progress, our recent Speaking and and review pipeline our Kim CFO,

We will questions. your the for then open call

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

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

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

Richard Murray

good everyone. and morning, Komal, Thanks,

associated and as a three our specifically, pleased tumor to multiple patients. therapies our our ICOS; pipeline JTX-XXXX, JTX-XXXX, benefits program, bringing to cell advance surface are also to PD-X immune becoming activated most our clinical continued well known which we're ILT-X. company More long on on LILRBX binds receptor way our cancer lasting continue a announce our We focus the to with progress to inhibitor; advanced lead and macrophage targets antibody and candidates, internal JTX-XXXX, with first-in-class that monoclonal programs, continued on the

While few emerging with progressing pipeline clinic details, clinic. Beth like I'd our the both addressing and spend in a will development more to follow to the minutes

important For JTX-XXXX, points. like make to two I'd

we escalation combining First, a in and June may PKPD and safety this initiated studies pembrolizumab dose ipilimumab JTX-XXXX recall as of with year. you respectively

safety While to planned. we samples simultaneously continue progressing patient the studies as These study. from ICONIC are analyze

initially, may responder Second, in in every other have I'd what that the the understand while of as driven those promise we like versus importance a to words, be outcomes, PD-X, is defined relies of potential combination key of scientifically analysis emphasize and class patients helps exploit versus then mechanism, thorough patient first context the a non-responder holds to the identify how unique combination into of relationship unique this findings us study critical the clinical clinical studies. analysis that well preclinical design, JTX-XXXX as new science the molecule to analysis biomarkers. especially on In samples strategy, may attributes to to

capabilities reach very bioinformatics outs translational reason. have We for and built our this

Our platform outcomes. and reverse into discovery, of from now analysis translation clinic a known samples is translational target with clinical the engaged in

analysis. firm developing to challenges approach immune believers beyond Given IO the that on therapies we agents, scientific progress in includes wide a approved the industry are rely need translational will that reverse

studies of the at program our ICOS JTX-XXXX. Over layout begin weekend, Phase analysis, X enable that Jounce to reverse from our presented SITC, two will new from that the posters learnings translational

antagonist signal clinical that tumor-associated publicly negative the a LILRBX as that a state believe suppressive JTX-XXXX, identify how We and ILT-X. also MX. our candidate signal communicate findings to macrophages target to sends surface blocking are pleased active an continue monoclonal of to LILRBX steps next directing will And these today, we're important the macrophages MX the selectively called program. new antibody We state called JTX-XXXX binds reprogram immune known can to from on cell macrophages to

proceed scientific on suppressive discovery or premise that is IND we're tracking JTX-XXXX different file that to our target are FDA contribute an for filed the from XXXX active of IND. And October. immune in in third clearance to was be cells September in We one PD-X our types new will Recall, Our and immune first to pleased macrophage JTX-XXXX. that an of state objectives tumor. our IND our inhibitor approaches received that based the immune the to program the

will team Tumor and some Jim Coley understanding all continues extremely PD-X is mechanistic as of PD-X inhibitors that studies, internal work science, in future for that pipeline to to jointly Prize important combinations translational at when as this revolutionary SITC. those have B. be and role an novel Distinguished factor We for emerging to excited for well as that imperative of original regimens. flexibility Physiology continue of were for Research and William enhance landscape Pam's first-in-class Award be We from in Pam both this hinder To Nobel We of cancer Dr. part was Jim our will awarded Medicine work Immunology negative Jounce. and work on of of as antibody one in compliments Basic or of understandings of progress for Almost therapy. believe this the our that one it preclinical such inhibition has as to rely believe on and science year's our awarded reverse and immune well and away the therapy rewarding founders, by of current the posters Sharma, me Dr. immunotherapy. founders immune-oncology to our today Allison. immunotherapies, simultaneously, innovative Jim's cancer discovery personally, cancer paved critical was the also us the in regulation

to our more pipeline Beth detail. discuss science like call and I'd over Now, the to turn to in

Elizabeth Trehu

chapter in the the Thanks, making clinical big in and Rich the clinical clinic. we JTX-XXXX. This has advancing you development the of very and power action is mechanism a in ICONIC applied trial towards good science as full of the new biology excited of from us programs moment are well next for understanding our as as an with morning, of ICOS to resulted everyone. our JTX-XXXX, the translational progress of I'm evolution of samples platform to share

So let scientific me move development. to describing provides for stage next the the foundation of some of JTX-XXXX that data our new

of we translational shared the As and from the weekend, builds of meeting Rich enhances to with presented understanding our on our hi XXXX. tumor biomarker mentioned, data blood nivolumab. reverse JTX-XXXX ASCO that commitment in Jim of past data with SITC lesion demonstrated least analysis ICOS XX% Allison building at target subset properties in emerged JTX-XXXX treated all JTX-XXXX on combination our work patients monotherapy Pam and CDX This as cells the And founders, this agonistic reduction, the target. both this a Drs. Sharma. of at the T with reaffirms in year's at ICOS that we ICONIC and presented The patients

hi provides development the CDX were further of investigation primary cells patients JTX-XXXX. T that the established foundation not next biology, key scientific with in observed of insights stage for progressive two Jounce the of Importantly, ICOS this disease. Through

T JTX-XXXX not First, cells, the emergence to correlated and which nivolumab. reductions was ICOS CDX related these hi with tumor of

PD-LX blood Jounce, of in with ICOS patients cells PD-X of a or monotherapy As study response. treated inhibitor that revealed hi T any CDX were separate regardless the not detected

data, showed CDX high experimental JTX-XXXX only in levels activates Second, scientists they of if vitro Jounce already cells that T-effector ICOS. express

is important. Here's why, this

these of distinguish does expressing Our IHC mouse cells. initial biomarker and does ICOS Of T-effector as enrichment and between ICOS tumors that high not We with preclinical to strategy assay the with immune per JTX-XXXX the data numbers amount Immunohistochemistry ICOS on IHC. by in not based was measure or tumors. showed of note, refer high efficacy cell typically cells, T-regulatory

of Our is derived the data, science builds T-effector new ICOS shows our of CDX samples per that from cells analysis amount is iconic of on founding which critical. clinical and quantification

Importantly, we able be going important of are JTX-XXXX the and measure to development would forward. component this an this blood in now

to ICOS to down focus be inhibitors, their CDX T paths. development cells we that two use occurrence can and not hi Given can PD-X attributed JTX-XXXX

cells on identify biomarkers. SITC. T these emergence induce mouse combination blood the In combination combo of anti-CTLA-X. and with cells the also baseline tumor an such tumors. lead the preclinical model. at predictive samples tumor the And an second, additional was CDX from these Preclinical in focus to for data model, immunogenic radiation providing CDX both First, of ICOS ICOS approach as antibody individuals evaluate expression response the to increased presented and had in support therapy on treatment increased agents anti-tumor agonist cells and potential that And who radiation

investigate to We matter. combination other are agents potential in continuing this

founders, our just analyses past biomarker of emerging input we and month, including the from ongoing the extensive Over discussed. data our some conducted with data clinical of have

in cohorts in been As the the JTX-XXXX. to I'm with JTX-XXXX about combination very evaluating safety ipilimumab as initiate escalation Rich of mentioned, trials and parallel excited additional to pembrolizumab in position running Phase combination order in planned, in enrollment clinical II us in has XXXX. dose two with

an Our analogous IND, tumor selective macrophages our associated inhibitor. next to We program tracking a checkpoint of an first a candidate and targets it reprogram is designed think from JTX-XXXX antibody immunosuppressive as tumor to antagonist third associated our which macrophage state. macrophage immunostimulatory to to LILRBX is

PD-X for us inhibitor. to is our novel we important our advances, JTX-XXXX, pipeline continue As believe it internal develop to

received recently X from As for JTX-XXXX efficacy. our to an filed pipeline Phase clearance asset a important escalation proceed in a agents with combination for and is FDA We may in September our dose that optimal Rich mentioned, need trial. inhibitor PD-X with believe that we IND other

immunosuppressive types continue cells is multiple which types cells. realize to other as we way advance discovery target the full pipeline of cell of potential immunotherapy believe to T-regulatory best stromal micro-environment the targeting We in that cell for with such cancer. Additionally, our patients the robust and tumor programs,

and which an the in of understanding tumors we confidence of the remainder forward of do. updating Our you micro the of the remains our depth to with in to development founding continue achieve immunotherapies that impactful to is patients, on I solid and team have great the forefront I for and principle look within beyond. approach, everything key XXXX our environment for progress we at immune

like CFO our quarter third results. XXXX to Kim of call for our would Drapkin, turn financial discussion Kim? I Now, to the over

Kimberlee Drapkin

Thanks, Beth good and everyone. morning,

of the the as provided equivalents operating December of million incurred state We XX, investments offset compared morning's by XXXX Cash tax September press the As to we million we guidance, utilized XX, and costs in financial August. income period, reiterate reported cash cash, as was of refunds. $XXX.X $XXX.X release XXXX. in during receipt totaled XXXX and for this federal

in our to $XXX cash million and with to $XX to XXXX million approximately lower at continue the million to of the growth expect million end We cash year investments. of be to guidance and for $XXX burn $XX end

maintain We on a operating allows immunotherapy plans, continue sheet, to continue goals. current to execute plus the which our drive strategic our innovative plans against flexibility pipeline us Based strong balance sufficiently and our XX equivalents months. to expenditure sufficient us our expect cash, to investments cash the requirements and least for next will our to operating at we enable existing expenses capital and fund be

to collaboration the revenue, currently the million the quarter Turning same XXXX. was Celgene in received for million third XXXX. the $XX.X the for non-cash $XX.X revenue reflects collaboration of our that period to recognition in upfront P&L, payment July compared Recall

We million in reiterating million of $XX guidance approximately our are to collaboration $XX revenue XXXX.

was to million a in The loss expenses in expenses XXXX. stock-based of X/X and milestone primarily of $XX.X the $X.XX. in increased million a basic XXXX million the Net stock-based payments expenses. million administrative share $XX.X same the is expenses and third and of increased regulatory same for incurred $X.X by General $X.X net were million $X.X associated decrease non-cash This or ICONIC to was in of lab $X.X million compared a trial, loss preclinical expenses, research and XXXX, increase related third other Phase of primarily revenue $X.X due quarter $X.XX the The license by increased increase increase compensation programs. million we XXXX external research consumables, for collaboration in million primarily of to period the G&A a period of the diluted net for million loss $X.X compared the quarter quarter the clinical $X.X of loss third of driven an in expense, compensation and $X.X and in is net period same basic to million in and by compared expenses or decrease development for per increased R&D with offset decreased During and driven share as of per expense. result XXXX. operating for diluted to expenses

establishing As and key value XXXX, while execute our on a will we diversified we as continue broad portfolio. drivers, and momentum focus to approach build we

call productive collaboration to to we over that, continue will our With Rich. I Celgene. maintain global strategic Lastly, a with the back turn partner

Richard Murray

Thanks, Kim.

your Before XXXX pipeline and opening want the will call be about to questions, clinical progression that for reiterate execution. focus, I

to in translational Importantly pipeline patients. JTX-XXXX advancement we With therapies the efforts. in remain the the science the advancement to Operator? right would discovery focused talented data questions. that our reaffirming who complex and a IO, therapies development developing are of team open additional on strong your durable team for from team we are energized well In capitalized for new see like of our cancer programs we and high of candidates field new built innovative reverse to drive believe and our for bring by new I'm now professionals, patients. discovering forward belief our that, and will necessary to programs. dedicated a approach the We've call of pleased benefit the

Operator

Our a line Morgan. comes question instructions] J.P. [Operator of first Kasimov from Cory with

line now Your is open.

Shawn Fu

on guys, this is for Hey, Cory. Shawn,

questions So couple from us. of

on The was especially of Maybe updates is that CTLA-X updates for the this the but ongoing with set do regulatory the you to what that explored, combination is the could give if understanding the material internal enrollment your for question, next the original given then the And second doesn't would use with programs, PD-X first, produce you still hoped the cohorts? see with the intent us we combination. progressing? pembro event might in when pairing in be plan think benefits, then from the some how this XXXX, being

Richard Murray

this that Rich. on Beth could thanks, maybe part Shawn, the then and answer of is Yes. I'll take first XXXX.

discuss continue we work the as inform all as safety the to So, on plans of we data going we're program, turn really and forward the the going new PKPD year. that help into biomarker,

into last months work safety that translational importantly ensuring we've few interrogate step we As and today. to mentioned previously, the referred we spent we've really the studies that

year So more the for the clarity you could look towards on in going forward. early plans

Elizabeth Trehu

PD-X regarding looking be at inhibitors. have JTX-XXXX, as that it using some we're colder have PD-X to PD-X like really program programs see a we're tumors, the our at where with for expeditious been types and Yes, effective. be where approvals, be not other JTX-XXXX We where more inhibitors for may more something pipeline we'll to where looking going inhibitors tumor combine JTX-XXXX approved as

looking So important tumor moving more a we that still than ever T-cell feel is the space. tumors JTX-XXXX beyond very start colder the and asset as inflamed at we

Shawn Fu

Okay, thanks guys.

Operator

you. Thank

Our the next question from Boris comes Cowen. with Peaker line of

now Your line open. is

Boris Peaker

in first ongoing internal Good to curious advance And your is just need My to this what's on do drug XXXX, what question future hurdle? into morning. see the I'm you development? study

Elizabeth Trehu

Sure.

cells inhibitor CDX least findings seen reduction. translational data and were we if with, into lesion ICOS us you the we've to that given from XX% important need the talked who and about trial, ongoing dose going work at the of from go-forward the with has most studies that with that CLTA-X a the insight escalation with of the T combination And how a Then this as are had target then ongoing now was forward. studies the proceed reverse know the hi subjects we really to fact tumor all the So mean to lot right dose ICONIC best the will presented the pembrolizumab. give study information us that in really of

they're said, So, as Rick it's all I think, converging.

time Phase start positioned trials analysis escalation this new our doing of dose X all to we're the combination doing been that in same so as at we've XXXX. we're the So

Boris Peaker

observe combo between in and we work is preclinical meaningful doing see maybe of forward? can take if chemo is, in curious that inhibitors perhaps to chemo I'm synergy checkpoint there question or to your significant investigate second my to general. are And a you just Great. some with radiation combination that these compound

Richard Murray

Boris. Thanks, Yes.

blood of was at CDX in SITC our have induce we that believe in we're mechanistic to biomarker posters that these in PD patients. hi of capacity the the fact One stream at cells that agents ICOS that looking

if induce JTX-XXXX. and the with came interesting that while We So know history work. agents candidates Pam's are of we able those for hi ICOS mechanistic see that's the that Jim to as cells from kind nivolumab that does combination

So radiation our the is SITC data, have looked and we those those the did cells induction cells. at of at that of cells line active a of the induction And on poster that rest in ICOS with hi of the really animal models. JTX-XXXX is kind then which in fell

Boris Peaker

questions. you thank taking Great, my for

Operator

you. Thank

question comes Our Securities. Birchenough Wells with from Fargo next Jim

open. now is line Your

Unidentified Analyst

is Jim. This for Hi, thanks taking the questions. An in Yan for [ph]

So discern strictly treatment treatment population. population hi ICOS or at any is you first could the before I'm baseline wondering if induced it

Elizabeth Trehu

An. Yan Yes, Thanks, upon cells these and Yes. certain induced types as are data of has well that shown therapy. believe Pam's

showed actually seen And it think can I have have what I and to maybe now things cells we is it do we she these So use to of one alluded with haves the the is ipilimumab, not. briefly we with have JTX-XXXX.

patients We cells emergence had who and had of have who and these some not. we had did then the benefit clinical the patients

baseline and different now So can populations, at two those by patient at go for predictive to potential looking back biomarkers. samples look their look we

this biomarkers at to it a not It's at on-treatment. can back just be pharmecodynamic believe is biomarker baseline, potential emerges present baseline. to So lead but clear, us we predictive

Unidentified Analyst

to indicators any look That's ICOS who responded, who difference hi half with discern Yes, getting them you to patients that of thanks also biomarker of tried maybe what I Have versus versus work not? them only done at at the apparently for to them exactly. at additional And clarification. was the responded responded. response of you look some have additional both don't,

Elizabeth Trehu

Yes.

ICOS do who I patients T cells. the ICOS know T have have all CDX cells. want hi of disease None the the the had And to that clarify first of primary cells. induce responders CDX these we inhibitors not progressive hi PD-X So

to patients If had stable disease of then when and emergence had the shown they lost it cells some you're who and of referring these that we've progressed.

all analysis, from to includes are to the doing samples baseline are we the benefit sequencing, blood really and patients learn understand We analysis intensive both predict, likely analysis really patients gamut thorough doing of we're RNA to help that the to which patients, what tumor. try of these DNA can

Richard Murray

as that, the we encouraged to maybe had cells we activity. at these add really anti-tumor Yes, that discernible patients the of continue mapping to to be I'll emergence look

So kind versus the that that us really the that have benefit cells. that relationship to of group nor not close allows did interrogate group

And so able think really we we be us look whether could cells. to these at have contrast to to will - which are back an tell pre-disposed us generate ability baseline, to those tell patients

Unidentified Analyst

it, you much. Got very thank

Operator

Thank next the from comes of Chattopadhyay Debjit Wainwright. Instructions] H.C. you. Our [Operator line question with

Your now line is open.

Unidentified Analyst

We everybody. I had morning, what is guys Are This in just know be? starting dose D'Souza with few Debjit. Good target earlier you any Ervoy your might for [ph] for the [ph] CTLA-X regarding about you a mentioned dose Abe update combination. and questions, thinking JTX-XXXX

Elizabeth Trehu

dose phase CDX data do the so we now going in hi that cells. we're range use escalation T suggesting and Yes, dose for that some the ipilimumab have of the We optimal ICOS need will induction for the we forward. that inform dose

year. about So about we with next right earlier the that studies we're on provide JTX-XXXX. working the talk we'll when more And combination new clarification

Unidentified Analyst

the to you escalation Great. into once move study? [ph] or looking for frontline dose And you hit planning NCD the are

Elizabeth Trehu

biology. So, provide optimizing of what the be phase year. is doing clarity next development more we'll the we'll about early again next

also have on much try competitive and to needs patients for unmet a are program, difference the So following the best the up-to-date of where but to we and of opportunity we the where and landscape the very make the demonstrate ourselves JTX-XXXX. activity understand keep science

So more beginning at the year. we'll of give clarity the

Richard Murray

would Yes, case, ASCO that the of out think we in details the we've year. we'll we and including I and be but still up mentioned - therapy moving will roll onward that Debjit early next from will be lines

Unidentified Analyst

specific that question, indications from Great. on One perspective? any so validation honing you're a last in

Elizabeth Trehu

in also landscape forward and the Sure, of understanding make we'll both on of both we so patients. scientific competitive activity difference opportunity best based have to moving for the feel types a that JTX-XXXX the where rational and and be are demonstrate the again tumor the we

So we'll early more about that give in year. the again details

Unidentified Analyst

it. Appreciate you, Thank guys.

Operator

comes Raymond with question line final our Steven Seedhouse from And you. James. Thank the of

Your line is now open.

Steven Seedhouse

the Hi, questions. morning. good taking Thanks for

as and like highlighted data I it featured the conclusion given it guys with ICONIC, a this than or data from not pointing be ICOS, recently obviously way we move So that is yet? be GSK to seems to having your CTLA-X future biomarker to is a is testing more their and well maybe it from might fair combo guess, data I likely you to it? at that be rational saw sounds mean, combination given trials point into see the PD-X assume you that that the stronger combo right successful as

Elizabeth Trehu

need that all that comes the a are on cancer ICOS those but as at Thanks, in that maybe part inhibitors A different point Yes. hi those of cycle, such immunity CDX right others. combination really combinations ICOS PD-X agents may it CTLA-X back hi T Steve. the best those focused induce mix It cells with our and we now acts belief agents - to are really and cells be the induce that those CDX T to inhibitor cells.

As agents we that. might other identify we're that to mentioned, preclinical looking do at other combinations

Richard Murray

is think, mentioned in most in induced. just JTX-XXXX at Yes, of able are and our when to our of its were her - really Beth remarks, posters active hi demonstrate that prepared cells one moment I part ICOS we as SITC already

if kind comes ICOS all find that to directly what that test activity cells the the with are have hi already you that been you level. of induced So is

is of the ICOS forward then agent with subsequently going combos where that then induce treat we sequencing - the is could So the logic JTX-XXXX.

the about translational from that So what next preclinical we'll data we're that's talk year. and and the reverse together early peaking

Steven Seedhouse

future biomarker biomarker I that type new out and of data target into as about can lot you And, you well mean, the when approach and and advancing target as hatch Okay, really this that thank approach announced you're you with - Or broadly the the macrophage JTX-XXXX move a biomarkers clinic, we're sort your the from you. for I as sort to your are of think generating the there the pipeline, into applicable compounds obviously, in mean, mechanism? finding that of you where up irrespective try are mechanism from of the have clinic sort new learnings start cell pointed apply do ground that to targeting? immediately you

Elizabeth Trehu

question. a definitely that's say to applying analyze everything we've collect are would the to we from how Yes, learned great how samples, I the process ICONIC samples, from trials, to data. how

applying those we're our So to program. definitely other learnings

operational and both aspects. aspects So analytic also data

the I data. think platform our we've the we also - translational of we've analyzing some of science as been honed parts ICONIC

And so better get keeps and better. it just

And will we've use of from stronger to and new that still what to of remain look And think very our obviously, to so The all our for better different as action ICONIC programs. but true is new programs. learned move we to programs. predictive mechanism make we trying only biomarkers I apply our we for us potential towards

Steven Seedhouse

thanks great. on IND PD-X your for taking and questions. for Congrats Okay, my inhibitor the

Elizabeth Trehu

Thanks.

Operator

participating gentlemen you. conference. thank today's does and Thank conclude for the This Ladies you program. your in

now wonderful a day. You Have disconnect. may

Jounce Therapeutics (JNCE) 13 Nov 182018 Q3 Earnings call transcript