JNCE - Earnings call transcript Q2 2019

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Operator

Good morning, ladies and gentlemen, and welcome to Jounce Therapeutics Second Quarter 2019 Earnings Conference Call. [Operator Instructions].

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. Please go ahead.

Komal Joshi

Operator. you, Thank thank Quarter and joining Jounce the Good Financial you Results Second XXXX Conference Therapeutics morning, for Call. discuss This morning, topics to the which release, today. we issued that a we press outlines plan www.jouncetx.com. Investors is release section website available the The & in of Media our at

today's a CEO President, who Speaking XXXX; review milestones corporate Murray, update call CFO, Dr. our on followed be quarter second update an on preclinical and Kim lastly, our an CMO, provide for Tréhu, provide Drapkin, and will will update will Dr. by recent financial Rich will review our on clinical and who pipeline results. Beth activities; our progress, key our development our

for the then We questions. will call your open

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

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

views specifically While we we to point any disclaim may if change. future, elect to the obligation our update so these some forward-looking statements in at do even

now will call I that, With to turn the over Rich.

Richard Murray

XXXX productive successful Jounce. and Komal. is up very a year Good shaping Thanks, morning, to everyone. be for

goals. significant the of progress corporate our we've into year, half made second head we As against the

for new vopratelimab clinic, advancing filing and data, the establishing and studies. initiating OS vopra X I reminder, and IND-enabling with II our a Phase IND goals As studies II candidate PFS moving dose into JTX-XXXX XXXX Phase include recommended or next Phase for safety our vopra, JTX-XXXX, immunotherapies development the into presenting for initiating

at meet successful tracking ICONIC the to On Celgene, conference a initiated data view goal, exciting were and made program and exclusively EMERGE presented XXXX PFS we this vopra, the the to year's Phase the OS we as decision from which license we outcome. program to On study. while strategic we II AACR JTX-XXXX,

JTX-XXXX, in I'm we've year. data Phase from Phase and that determined I our announce present recommended JTX-XXXX Turning the dose. to of pleased to PD-X this study completed to We inhibitor, I second half the today the in Phase II enrollment plan the trial

next into Additionally, studies. we remain our on advance to IND-enabling discovery program track

targeting regulatory and stromal Our broad programs T pipeline and cells, cells. multiple macrophages wholly includes owned discovery

goals, cancer Although in tremendous a against we've to unmet progress executing to our patients. made needs growing the of lot we do, still address have

over our the turning on to Before to company management years with these Jounce the I'd bring IO over like patients. ability the detail strategy. and touch X more Since program, corporate joining that Beth go focused together has right into to ago, novel therapies I've develop targets team, call a been to building on and resources our to on the

company a of ever-changing development, and we both development. and IO the creating on can that Given drug complexity landscape support focused discovery

of wholly our the to ever owned believe pipeline of position stronger heels Celgene the a On than I renegotiation in are move the forward. we agreement,

from first-in-class recent now receptor JTX-XXXX, to Celgene take exclusively that clinical as macrophages. July LILRBX leverage highly the rights that take moment summarize our to a team to proud of to candidate. our antibody licensed I'm Celgene done worldwide target I'll translational science potential the renegotiation. efficiently work XXXX, to JTX-XXXX platform our this to targets discovery very the In on selective, our speaks we've

a rights by in cell terminate into pipeline XXXX. entered worldwide was wholly resulting to collaboration We now the agreement signed mutual also our Celgene owned a strategic entire to have we in targets robust which full which been tumor time, broader with collaboration vopra, same the programs, our includes our JTX-XXXX At stromal always within discovery the Jounce. pool, have that pipeline, the plus previously and Celgene,

Celgene build we with are build relationship out while of the and next-generation broad beneficial, very year platform, three into therapies. to with IO Also us programs and time, team potential broad to made was our helping very outcome. X this productive advanced great continuing our progress a The during pipeline pleased development,

platform highlight identify step discovery, we advancement IO to novel the we use tumor to me and understand believe moment the a science and targets. of our interrogate of why immunotherapies. back the is In Let translational critical microenvironment

apply and we are this methods The process. JTX-XXXX of an to example of technology at of important license to Our our a and plan continually is approach approach. to our to sustainable, this validation work discovery exclusive target selection Celgene

mechanistic of our to our the of and platform key strong sheet, continue discovery, advance programs enables translational both and to studies. patients. immunotherapies ongoing in has of on underlying led platform focused validated the Beyond team, characteristics balance our our vopra. of understanding the experienced and findings our responding we program, science of patients lead remain development the This reverse our interrogate discovery clinical With clinical underpinning to the stages and responding clinical next characteristics scientific

significant we forward. horizon, is With going Jounce developments believe well generation Beth? for many value exciting on the positioned

Elizabeth Tréhu

highlights a the of recent Rich. some pipeline. moment I to to take touch of Thanks, want our on

after unmet growing into pleased lines options have We and of populations our with in move care few in study or the therapy with of patient bladder progress of combination are lung earlier II no of ipi Phase represent initiation with cancer ipilimumab we mentioned, made Rich standard established vopra. PD-X Most patients for notably, inhibitors who rapidly or announced with of in patients vopra we EMERGE progress PD-X experienced with cancer. PD-X a PD-LX inhibitor. need as the particularly mid-June, as non-small-cell area or These

have who do. inhibitors who unfortunately, do there are not more than PD-X great strides, therapy to still those Although respond made patients

help cells, need. ipi from unmet II believe in The CDX we CDX original patients role impact to analysis not. inhibitors as that reverse founders address who upon focusing PD-X benefited translational cells our this critical science the the compared Phase subset trial of activity and of vopra EMERGE primary the on ICONIC As clinical from those may trial who did well builds the our as of

dosing cells and ipi, also EMERGE combination based of of a includes novel ICOS between vopra. The on emergence schedules new kinetics T the sequence study our hi understanding CDX the and

in to are begun enrollment study. We pleased have this

multicenter Phase reminder, approximately to ipi. study study XX clinical and rate a and an In survival. enroll the response of evaluate the we of cancer. end is primary survival lung with As trial in overall overall and non-small-cell to points cancer combination expect end II vopra is bladder patients point efficacy approximately patients the XX initial stage, safety, secondary open-label, EMERGE duration include with progression-free The response, with

predictive will exploratory Additional other close potential assessment of of of biomarkers, range assessments important ICOS monitoring hi include a including T and CDX emergence biomarkers. cell

expect relationships We and efficacy to patients preliminary to report XXXX. for outcomes clinical biomarker XX up in to

are Beyond the EMERGE additional of of trial, the stages studies vopra. Phase in planning we II also

defining of ICONIC reminder, a the from patients Meeting, we Annual data CDX benefit. T biomarker greatest As in of the I/II April, cell establishing hi in further AACR presented vopra-associated with the trial ICOS clinical the importance new the at vopra exciting Phase

of them. patients survival and survival those CDX progression-free overall emergence improved observed we the with without in high ICOS T Specifically, versus cells

inhibitors. due to development vopra to emergence of on reported, previously translational and this the cornerstone program. a PD-X these was of findings, have emergence of and these population cells we Based the to expansion of cells optimize not As reverse strategies become vopra

recommended I the to are we data this completed pleased announced, and Phase second II Phase plan inhibitor, PD-X from our in year. determined We the have Rich the to clinical study have enrollment this in dose. of of JTX-XXXX, As trial half report to

build our of right targets, we continue including True incorporate discovery plan goal discovery developing programs. pipeline we to regulatory advance immunotherapies predictive for our programs, an clinical right of macrophages T early IO out all in and the of biomarkers these to to the our stromal and Beyond potential also cells, at stage patients, cells. novel

it announce We this and candidate expect year. a new IND-enabling studies to development later move into

our made with We date to entire across pipeline. are progress have pleased the we

We focus science we our the bringing long-lasting meaningful as of and underlying continue on towards benefits patients. work cancer to mechanistic immunotherapies to

for to financial results. call Kim like of would discussion our turn Kim? the QX I over to Now a

Kimberlee Drapkin

and Beth, good everyone. Thanks, morning,

in as to of million million release, of with cash, as press XX, costs investments XXXX, equivalents to was As end, July in The period. received XX, compared agreement during Subsequent $XX morning's June Celgene. we new we and XXXX. $XXX.X cash million December pursuant our decrease incurred this XXXX the license quarter to reported the totaled to operating due $XXX primarily

P&L. Turning to the

relating the that announced Celgene XXXX. the Our collaboration to the In in the our recognition period $XX.X expect payment collaboration the $XX.X July XXXX, currently in deferred quarter noncash received in be of the compared million alliance second XXXX. of connection revenue million of for same we with will the the reflects of revenue original Recall third with that for collaboration to revenue in fully Celgene recognized was termination quarter XXXX. strategic Celgene July broader remaining upfront XXXX

was incurred XXXX, The period compensation partially in During million by in General increase for due same was expenses the employee the and and costs. in to R&D $X.X were increase we $XX.X XXXX. XXXX. the million expenses second second expense compensation period costs, lower XXXX operations. offset quarter for G&A costs million our compared research development compared decrease support an of $XX.X increased in to stock-based external expenses in and The administrative costs, compensation result to the employee including of the expenses in $X.X of for quarter million same to higher

quarter to of period and remaining or $X.X increase loss the XXXX Celgene representing by basic to record and updated XXXX. diluted We guidance XXXX, in for per license and share Net exclusive noncash net JTX-XXXX million noncash revenue XXXX net recognition of million revenue the July in loss the million This of expect of $X.XX $X.XX. and or revenue. a loss $X million payment was of compared was upfront as second cash revenue the our XXXX in driven diluted $XX reiterate approximately in lower for $XX a the basic received in of same related share per a loss collaboration to in net

million and on capital for expenditures year Based gross and full expect $XX $XX operating the approximately million. be burn on our cash continue expenses to XXXX operating plans, we to to development

flexibility the immunotherapy us Our allows efficiently drive strong our plus to and plans goals. sheet strategic our against pipeline, execute balance innovative

studies continue to We our of are next our and on vopra rest the pipeline. Phase executing focused II advance of

would your we for now to call that, open With the like questions. Operator?

Operator

Instructions]. [Operator

first comes Wainwright. with Chattopadhyay the from H.C. Debjit question line of Our

Debjit Chattopadhyay

a So I've couple. got

is since so XXXX, and partner have those you a how do for dose for combination have activity JTX-XXXX, as stacking other up serve of sense So best PD-Xs the II recommended you the Phase vopra? versus the

Elizabeth Tréhu

this Beth. Debjit, is

developing second in Phase drugs we JTX-XXXX to goal study So the be data in primary pipeline. to to stated our is we've we always combination plan half I in it that in the the mentioned from other this able with that year. of our use share And have

Debjit Chattopadhyay

So should read go I the other you with and don't combination into it? vopra is XXXX, to anti-PD-Xs, really any have what to that's next

Elizabeth Tréhu

No.

We in haven't is. share II information stated what of the additional next progresses. stages more the planning and we'll currently as Phase time combination studies, We're

Debjit Chattopadhyay

Great. And then one last one.

EMERGE what of bolus hurdle for could the XX and recruitment And on that's the non-small-cell choosing ClinicalTrials.gov first after X XXX the now? rationale in study, the of as So full us just the remind the first up you patients internal on indications? patient urothelial does right to terms

Elizabeth Tréhu

Sure.

number the into to of at So details to have built And we shared analysis protocol patients we the initial haven't that point. are and get this we've that of interim time. that the announced an

would difference. of was the there areas we tumor was the thought types, in lot where into of wanted the a a experience Regarding reason obviously. so a this to and space, that we vopra ipi significant but we need had unmet where believe What put choice PD-X make

hi had were so non-small-cell we of in cancers, you lung ICOS the cells. cancer, ICONIC experience who for who recall, actually had T CDX the if emergence benefit had also patients study, PD-X And who lung non-small-cell

And a that in with nivolumab. was combination

combination while longer pretreated into something sick, lung non-small-cell IO right have to study cancer, know setting, the reasonable reason be study. also we in patients need ICOS cells. much front-line we're to to setting, have moved take than ICONIC able that into less we to new go little who stay treated PD-X hi CDX explore. seems be in will on patients that patients then so the Hopefully, believe inhibitors those of to in And emergence second-line we vopra and the less those is because heavily that since we work, a able a So to

probably the induction CDX first Sharma of cancer, ICOS showed which urothelial to by cells the major in one of respect driver With is ipi. hi that is Pam that, tumors

in type know on cells after CDX and is so that those by hi fits that ICOS active biology rationale. the induction our vopra we And scientific adding tumor of ipi

rationale So to therapy, kind good patients a there's need, benefit. unmet on also to in be from earlier for we believe both then sense their scientific of lines enough should market who and long able of a stay

Operator

And next line of from Steve with James. our Raymond question Seedhouse comes the

Steven Seedhouse

and and drug Just to you one you might What Where headcount question strongest? competencies expands core Can of highlighted about that you capabilities pipeline? platform prepared more the have for And current just build you out the development the the me. your as grows be across the advances talk are is the company? that looking in -- you remarks? Jounce where

Kimberlee Drapkin

Kim. is this Steve, Sure.

one full-time experience proud the we've entire our always if early of build a the is, been into clinical. to So we XXX able have Cambridge. here that things with you company in of programs life discovery we've currently will, And of the employees from been cycle, across

And of using what we we're discovery platform. need of terms we able that we scientific do the feel translational our reverse have bench the all internally. though a to Also, and as we analysis the very in do so translational work strong side on

though you created need team will, be. finish, go to we we we've from us where really if take feel start to as that and So can a to

right to holes, that of We don't if have expand. terms functions looking will, in be any we'd you major now

our level to and continue develop the add with more we've built go is headcount. into much we though at we clinical as a be to like lot But would feel additional trials, of clinical would team discovery we pretty As we expertise. a it and

Richard Murray

translational up Rich. the Steve, is as I'll to just to this on focus work maybe seamless with bit possible. is as with that clinic the a make that goal as Yes, really pick The interface try well. on science

shining JTX-XXXX. structuring And think deal, will so more which the renegotiation the we're light from how seeing new included the emerging. do programs obviously, out-license on very that's with Jounce we company. I the really of of -- we're of be We happy Celgene kind

target what to efficient think discovery, just biological And of way benefit And that, that T eventually these reemphasize candidate. did a concept very early manner. that went That we in really, clinical a we from to new macrophages, same on cells, mechanisms early cells. we we'll continuing that could employing be methodology, that stromal regulatory on same after going think patients that is

sets with about. work So skill progress we're the will and you we discovery. supporters idea happy of horizon told kind of much then, us reverse we're that the very how of the And the translational know, as of of course, Beth

integration forward than particular going -- is rather it's So of of integration -- an forward more filling really kind any gap.

Elizabeth Tréhu

in can well. really just very adding, brought as in this the Beth, some we've clinical And and is I maybe finish senior experienced people recently, organization by

bench a we like feel have we there very, well. so And as very strong

Operator

Wells our Jim comes line with question from Birchenough Fargo. next And of the

James Birchenough

can your of first, you expected induced some ICOS And T hi a rate there? couple rate the X speak I in data these of certain suggest hi terms questions. by to A assumption ICOS is to types? of ipilimumab? tumor maybe cells CDX of cells there What's guess,

Elizabeth Tréhu

This is That's Sure. Jim. question, Beth. great a

X% from XX%. X to has after ipi. generally, So doses -- see published, X And it they increasing from up Pam ranged in anywhere that the of its data to to

for the the have kind point. peripheral of patients cells to blood treated with per that's would ICOS ipi, that's at sorry, seen XX% number hi, And being with of range CDX up ICOS patient, they individual that's patient we hi. of the So expect but an -- that that's not this

James Birchenough

if Or an just of cell the that not or there the into sort Is state? you T increase wondering have on Beth? ICOS you just seeing thought hi T getting induction about in anything protocol, of -- you're where not patient scenario to anything? I'm run change induction you're that if a ICOS numbers cells

Elizabeth Tréhu

Sure.

ability to And react So to closely to very think monitoring demonstrated, in data. something we're going emerging have the we as the it's we've be I study.

a go very able key data. is this we'll so where And and to closely, things those of as along response in be we be some very, we emerging to indicators will following modify study

Richard Murray

being, add be implication study maybe enrolls. Yes, at looking this the there to the will we as

James Birchenough

a just the patients then was vopra enough, there And Great. dosed could Okay. ICONIC of it benefit. maybe on if seems ipi to ability you tolerability and dose and get the long that together combination, from that

that what have kind about do on what the enough And you will expected maybe a so have confidence be the here, you're benefit? of and you vopra patients protocol of long derive learned dosing combination tolerability to pursuing

Elizabeth Tréhu

a That's something a talk we question, great about lot. Sure.

of ipi not have all, completed any ICONIC in we able and we toxicities. first escalation -- dose-limiting So vopra, and the dose to did of we're

very were study respect that. able X a dose And together. to drugs we're ways So addressing number with we people longer, pleased are that of the were there We different to that. keeping on with

mentioned, First patients. these all, as are definitely earlier-line I of

second, some So these to patients are maybe patients. going be third-line

So heavily the as who line were in up as were who they nearly mostly beyond. ICONIC, and pretreated are beat or not patients fourth

longer. keep in believe We we protocol implemented measures other also the on will have help people study that

tracking be are Some also absolutely strategy think we staying the people But hi I really have how to good but cells, of of ICOS about ready on for the rate publicly, think, CDX we're in going a we we those, tracking talk that. addition not to to are study. long

be closely. watching very something that's we'll So

James Birchenough

the you're ipilimumab what lung In expected for maybe bladder the in alone would a final therapy question. the response and be rate And just lines combination, of dosing cancer?

Elizabeth Tréhu

actually some is There about no There's of and the data not is a data X%. with tremelimumab, There's rate that. data with on response Yes. lot ipi,

Operator

Instructions]. [Operator

with Mike Baird. comes Our the from next line question Ulz of

Michael Ulz

And sites II study. question in on patients can and running? the And predictive the versus I that's how number enrolling cohort? tracking secondly, you you've Phase maybe of are curious on the then then of And if maybe pace a that up biomarker just just here and enrollment just early begun EMERGE comment the expectations? your had

Elizabeth Tréhu

right EMERGE we've know, ready study And including -- But is we you pleased study the try. the I biomarkers, nice any don't so data are say biomarkers as with itself. Mike, I'm really in we're predictive in would share several usually going enrollment. have we regarding the how details. study just to not share on of the additional mentioned, pace potential -- now.

Operator

next line the Kasimov from And question comes Cory of our with JPMorgan.

James Scott

on call will Gavin the you I is apologize, Phase full year? this XX? the for in study, back out bladder spread This got both for to -- the on EMERGE Cory. that going Or data to I But late. interim analysis, II and just the lung through present be for the so are

Elizabeth Tréhu

Yes.

we've have to As up types to across tumor on we next patients expect data stated, both year. XX

James Scott

-- from I CDX I just this X% T -- patient? And for Okay. the Steve. was to misheard, just answered that you think per hi then XX%, ICOS think But cell you of terms I can in the question but

Elizabeth Tréhu

yes, -- per No Yes. patient.

particular if a CDX in CDX and blood, at of measuring the cells cells been as time. is percentage over can what we've patient, track look this hi So you ICOS the you well, peripheral

it's that's max with in increased CDX after it's ipi. so data Pam of she's are -- peripheral the has cells that ICOS up blood at what hi XX% to to that that been the treatment least has And published shown the

James Scott

number? versus Okay. where explicit there low you a that high And is define certain cutoff

Elizabeth Tréhu

is and cutoff shared yes, we've that, but we've there a identified. we do Yes, have that

Operator

for Everyone, program, showing in no thank participating you questions. conclude a Ladies conclude does This And the day. And disconnect. our great portion. have and conference. gentlemen, may Q&A today's you and I'm does this further

Jounce Therapeutics (JNCE) 7 Aug 192019 Q2 Earnings call transcript