Gilead Sciences [NASDAQ: GILD] Announces Agreement With Jounce [NASDAQ: JNCE]

Gilead Sciences, Inc. [NASDAQ: GILD] announced Tuesday it has signed a new deal with Jounce Therapeutics, Inc. [NASDAQ: JNCE] for a novel Immunotherapy program. The purpose of the deal is to license the JTX-1811 program.

Gilead Sciences will have exclusive rights to develop and commercialize Anti-CCR8 antibodies. JTX-1811 is a monoclonal antibody developed to selectively destroy immunosuppressive tumor-infiltrating T regulatory (TITR) cells.

Shares of Gilead Sciences traded down 1.00% after losing -0.67 on Tuesday. It has a day low range of 66.06 and a day high range of 66.47.

Gilead Sciences Inc last closed at $66.08, in a 52-week range of $60.89 to $85.97. It has traded up 8.52% from its 52-weeks low and traded down -23.14% from its 52-weeks high.

Let’s take a quick look at its profitability, it has a return on assets (ROA) of -0.40%, return on equity (ROE) of -1.20%, and return on investment (ROI) of 9.50%.

Furthermore, Gilead Sciences has a Gross Margin of 78.60%, a Profit Margin of -1.20%, and an Operating Margin of -4.30%.

Gilead Sciences (GILD) has a current ratio of 2.30. Moreover, its quick ratio is 2.20. The market cap of GILD has remained high, hitting $84.06 billion at the time of writing.

Now looking at the share price of Jounce Therapeutics soared 70.04%, as it gained +3.39 on Tuesday. It has a day low and high range of $7.10 and $8.50, respectively.

The share price of Jounce Therapeutics went from a low point around $2.79 to briefly over $10.00 in the past 52 weeks, though shares have since pulled back to $8.23. JNCE market cap has remained high, hitting $157.59 million at the time of writing.

Turing our focus on its profitability, its return on assets (ROA), return on equity (ROE), and return on investment (ROI) is 11.30%, 13.50%, and 30.20%. Furthermore, its Profit Margin is 18.20%.

If we look at the terms of the Agreement, will pays an upfront payment of $85 million to, and a $35 million equity investment at a premium in, Jounce upon closing.

Additionally, Jounce may get up to an additional $685 million in future clinical, regulatory, and commercial milestone payments.

Jounce will lead the development of JTX-1811 through IND clearance, after that Gilead Sciences will have exclusive rights to develop JTX-1811. The deal is expected to close in the second half of 2020.