Jounce Therapeutics (JNCE) 7 May 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Jounce Therapeutics First Quarter 2022 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, Eric Laub with Jounce Therapeutics. Please go ahead.

operator. you Thank Laub, Therapeutics. Eric of Relations Investor This Vice Jounce at is President Good Therapeutics the financial to morning, welcome and Jounce call. results first conference XXXX quarter This outlines release, plan a discuss morning, that to topics we which today. we issued the press and available at our investors section of The release the media is in website www.jouncetx.com.

update our will call CMO, our our key Dr milestones Drapkin, on by and our Richard provide pipeline Murray, lastly, on today's Kim results. CEO our and Speaking who Beth first progress who Trehu, Dr an will be And CFO, activities. President, will reveal financial clinical quarter followed our reveal will

We open then your questions. will call the for

that I discussion like about expectations, statements constitute we remind everyone statements. prospects future would forward will begin, looking include that today's our Before and to plans,

Provisions looking the materially result purposes as private Actual under For of litigation SEC our these reform differ of results factors important may including harbor filings. by the statements the indicated of the Safe XXXX. risk factors, discussed act in various a from those securities

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

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

joining today. Good for Eric. thank you Thanks morning. And

lives, continue on we release pre-specified criteria INNATE response the bring to morning and day. cohorts of continued our patients. We excellence Every pipeline were which the work. commitment X of turn to initial this accomplishments, patients' to team XX me announce to to to a met expansion study Before quarterly the their in press our that pleased improving they to dedication recognize I let take entire Jounce in moment to

in a this cohorts. more on few all study by Beth continue moments. to progress detail encouraged the are provide will INNATE We and execute across

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lineage the point myeloid the being human resistance. to cargo scientific as target discovery least aspects tumors. to from cells some cell a immune continues As We evidence of at myeloid interrogation IO to undertook comprehensive of

RB ILT IO or immunosuppression mediate discovery From prioritize in as These we could LILRBX(ILTX) family activating to LILRA or receptors, prioritized occur that focused such X Our mechanisms PD-X work leading the There as immunosuppression, mechanisms CQ-AX. this such LILRBX(ILTX). of X inhibitory of receptors. could LILRB, and patients key certain work are independent or being low T-cell receptors resistance. any

of discovery. unique therapeutic the in has these Each and as of common IND an Now LILRBX(ILTX) as to benefit. biology which enabling by well features lead may studies programs they mechanisms and

state. other JTX-XXXX myeloid macrophages cells on the associated of program to activities to tumor blocks these convert priority function an of highest Our in LILRBX and immunosuppressive cells active aims immune

inhibiting be reprogrammed, in by to favors we macrophages immunosuppressive believe tumor. response in LILRBX, can the binding which First ligand immune

preclinical result alone, to PD-X thus bridge adaptive it leading tells allows Second, we creating resistance. cannot reverse potential and more data T-cell inhibitors in believe the TSOL checkpoint us This and activation, innate mechanism to immune for systems. may between antigen a inhibitor is effective do also the presentation the something

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biomarker We have this and completed expect the to TISvopra screening month. enrollment complete

trial As year. we to our half full share of reiterate expecting guidance meeting second of at in this clinical medical a data the

identify our we as superior teams lies tumor well individual combinations activities rationally advancing JTX-XXXX the where expressed year. currently actively goal building program biospecific LILRBX(or Our discovery We're as this development additional studies. this on to to our to candidates next cells is as immune work excited is compared in the is have of of what ILTX) both myeloid potential are Jounce family, LILRB clinic. clinical and that suppressive the to in readouts biology overlapping distinct ahead mechanisms, that program LILRBX LILRBX. data IND our by Led antibodies. look forward designed cell for key enabling the program at to anti microenvironment in with myeloid types an We antibodies target toward

execution I'll science Our patients, the continuing to Beth clinical detail. to our in concept benefit discovery proof and discuss settings robust cancer strong our in our more few enables pipeline have of growth where therapeutic inflection the call in options. that, the novel to patients continued turn efforts, and identifying particularly points financial With new INNATE over beyond position mechanisms and progressing of while SELECT

Thanks Rich.

our you We on be very proof provide to are updates to of studies, some I'm morning. pleased for making great studies able progress and both this concept X on

Let's of milligrams X and different to dose are XXX both dose the trial Enrollment monotherapy met XX Rich selected delighted the combination indications. response combination as X treatment cohorts very going we both to recommended actively that cohorts criteria in and and And year, with INNATE report for to our pimi combination with the well. patients X phase is expand are mentioned, have expansion phase one phase the for enrolling. and X as LILRBX JTX-XXXX, the initiated inhibitor. monotherapy Last start we escalation completed

which are in indications For and time, both be competitive reasons, at well this alone JTX-XXXX with expanded disclosing have tolerated. combination to continue pimi we not

for is each As combination reminder, the a the cohorts. design of expansion X-stage Simon cohorts

XX first patients consists additional Each based per before cohort cohort. the on patients of of pre-specified criteria radiographic must combination The meet for response XX of cohort. XX a resuming stage enrollment per total

opportunities digits. demonstrate with of PD-X in therapy alone expected tumor goal concept be for monotherapy where tumor Our have True to have have XX is than full all inhibitor PD-X with rate unmet types unmet proof in each alone. indication on are were The low, would have of who combination a single PD-X tumor INNATE patients in provide need reflects macrophages, failed for focus impact. the investigated quite and what response and need inhibitor groups immunosuppressive types the rates a the interrogation the high minimal that the INNATE or they our X being of because microenvironment, inhibitor is are PD-X chosen the generally This expected response of in of in patients. different high are a percentage major requires have to greater to the high set which inhibitors PD-X across inhibitor a of JTX-XXXX patients,

approved, patients indications X inhibitor are which we are for previously PD-X distinct naive who approved there across As therapy, the have a tumors or patient PDL-X studying whose have we naive X which inhibitor inhibitor PD-X patients who study. in INNATE tumors resistant. the no or tumors inhibitor there PD-X stated, populations and PD-X have for PD-X PDL-X are inhibitors have PDL-X inhibitors. who failed are and patients

of for this expansion opportunities to to JTX-XXXX of and have included difference later in determine trial the year. a of the patients pharmacodynamic best with important be our with evaluation We efficacy, will aspect all the cohorts predictive of for biomarkers is patients X which An groups make done correlation cancer.

combination in pace this year. There XX phase X that expect efficacy will preliminary analysis this at predictive contribution of will the data correlation combination cohorts, INNATE patients safety believe relative II to preliminary will second to assessments interferon the pleased II macrophages a include data We INNATE, improved on linked in data This are escalation data. data, the of is of are per and predictive factor very to we levels Phase a If data and efficacy. half with typically one escalation the include predictor present greater clinical meeting in efficacy. regardless monotherapy all whom observe high outcomes X including based the we we of PD-X response treatment. least biomarker dose be biomarkers, body an pharmacodynamics to And have evidence potential later of XX and inhibitors. respective of with and that particularly clinical safety, efficacy are at patient useful least that PK/PD prognostic LILRBX of dose medical in at to a of in in from biomarker combination by growing patients, a the XXXX. outcomes, of biomarker complete of Phase enrollment Phase in interpretation immunosuppressive at negative will We on confidence association many worse I and clinical response cancers, JTX-XXXX negative expressed gamma biomarkers were

RNA track One, cell PD-X of in II important few chemotherapy achieve half the Now in doses metastatic to are In patients. trial goal of based weeks. study trial Pimi points Pimi versus both on we have signature, and free the utilizes We the The PD-X of all survival, and PD-X are Pimi a the a superiority patients target the which duration randomized overall relevant our in above Vopra data trial in and of and inhibitor next ICOS progression PD-X platinum Pimi development. activity is with concept value are XX biomarker XX Vopratelimab present mean threshold expect when non-small are are Vopra from response cancer, than is agonist. designed at statistical regulatory of overall and selected weeks. gene Vopra second and enrolled met questions. with onto biomarker our represent XX to the and are naive which in to with progressed to trial survival standard choose Phase Therefore we ICOs biomarker our based a patients XXXX of enrollment of a other X further result Phase This X patients over had a combination alone, patient inhibitor response, proof of endpoint that the in for plus XX screening SELECT genes resist change X will we dose endpoint. on primary rate, averaged SELECT And seeks tumor the the program alone SELECT biology. alone. address size should patients to includes selection to plus stopped patients a predictive of X, in selected patients Vpora secondary end PD-X inhibitor XX available to baseline and of TISvopra, The Only an complete greater of enrollment available show lung who biomarker regimen. complete the II inhibitor studying compared Vopra meeting. medical

both and differentiated for studies, molecule engagement on Vpora. the is analyzing prior selected familiar patterns we of ideal were the based antibodies X.X sustained an endpoints, positile not target the We on by determine and hypothesis X.XX for exploring and the target steps data a primary required are that will [indiscernible] engagement in antagonist demonstrated and agonist doses assess like next the more [indiscernible] secondary based

may a for in positive to expect the development potential Vopra types. to a result on biomarker lead based of directed and further development tumor multiple clinical results We choose select SELECT in dose

of all the to to site I Ukrainian SELECT and Ukrainian study the personnel. the report of happy incredible end our to am Every in through in efforts that study and our Ukraine enough to thanks study year. Ukraine, to continuing inspirational last the study the Lastly, patients discuss of site patients team are I'd and assessments. receive has very fortitude patients like ongoing treatments drug this of

sites have some moved And study patients other countries. in to

this they care Our thoughts to are tragic navigate with as the provide their who and continue patients, situation. those their families,

at a take situation valued who continue to conclusion, make put the monitor patients thank this continued to on moment a Jounce in the Kim. I dedication their programs. call lives. I to team reporting progress over turn in difference would like I trust will closely. the their would our thank In advancing look to these also We medicines investigators. like to our We and importantly, And will our year. our most forward now to to critical very their to

Beth. you, Thank

burn The As release from to cash operating as million we decrease of reported and investments, XXXX, equivalent to the due cash was we March XXst, $XXX.X during in XXXX. cash, of this morning's December period. are XXst expenses million press as compared $XXX.X incurred

quarter million research Gilead recognized P&L, related solely first quarter XXXX, performance the the revenue first under transition to to was to XXXX. revenue of and during Turning no XXXX the compared the revenue of was the The comprised recognized of $X.X license of agreement. non-cash revenue services during of

the was diluted compared the attributable diluted loss consulting based development of During increased first to net the the are first based in the quarter to per XXXX, XXXX. $X.X stock clinical compensation of we to million a be incurred cash basic quarter manufacturing period as a to burn loss the external INNATE, development and and quarter primarily Based expenses same XX a million of and incurred in our expense. expense. current to year share on of per period compensation G&A General share million net increase $X.X is to XXXX. expenses cents. XXXX. XXXX for and same and the The guidance stock for same resulting was in in in period was expenses expenses quarter expenses the operating of operating loss payroll we Net cents a $XXX in were growth for in $XX.X and million. of first XXXX result compared increase net administrative million $XX.X The plans, increased our for approximately for of XXXX, research basic net for decreased and and in performed to for of R&D $XXX full compared reiterating loss decrease increased increased first an million $XX.X XXXX in loss million during activities due resulting XX regulatory million The expenses $XX.X in

to strength the we of investments equivalent back and through our existing the final it sufficient of expenses operating capital to cash will for Rich requirements fund to sheet, third be cash, words. our Given our and hand continue XXXX. balance I expenditure to some now quarter expect

Thanks, combination to position our Kim. puts of points. strong financial execution, move our us beyond clinical of resources a The science innovative set in next inflection and

us have able later are update be trials, data We to on extremely progress to the keeping on in and year. SELECT this you made INNATE to pleased track we report

We growing are build cancer working hard the pipeline, need IO which looks to by to patients. unmet an address faced

open with talented such individuals This such be and group investigators. on an this exciting your With challenge, to forward fortunate working look and and accounts you privileged mission programs are We time together would is collaborators to clinical we to have your like questions of we that, updating a dedicated at on call to progresses. to as operator. to the now the year

Instructions]. [Operator

Peaker comes question from First Cowen. Boris with

guys hear the on you progress. me? Congratulations Can

Boris. Thanks Yes.

XX and on, not guess My are initial X that the Fantastic. first the update in to patients. on for combo question have we I cohorts INNATE received an how XXXX, close up enrolling on they follow

trying expanded. Just be cohorts the time may to of gauge other when line

and data. so some Beth. This is Boris, enrollment completed for cohorts thanks some still Yes, and are have we're the waiting question. cohorts for still enrolling

is I think, plan and We'll the in on at XX this update going give II I have call. fact know, you really patients time, the data to are over excited every study's on later So am an this year. we even about going, that earnings how on you Phase point but our

do of mechanisms curious enrolled action. have the you're guess, clinical HLA of the drug. follow can different have And also activity on the and assessment impact if HLAs [indiscernible] HLA assessing of a and it. finding I just on based have material on its up for different XXXX Got am human I patients

Sure.

poster, our showing at the for included. be that some some be We potentially ones showing XXXX, the So will data data, LILRBX know, work think in molecules, culture a are the predictive HLA you presented of humanistic HLA biomarkers. particularly from I ligands molecules, could of that

negative JTX-XXXX. cancer be about of for So we response prognostic lower could as marker to inhibitors are looking talked than things predictive those you Those think that or know, clearly CD-XXX that PD-X at. for for prediction LILRBX, probably promising we've are things that like factors we're priority things

James. from question Steve Your with Seedhouse comes next Raymond

your Nice rehash reference, to determined cohorts. you in I as determine you that you how look PDL-X the off corporate types, slides, actual the of is for or criteria at each could what a is wanted progress list a a hear also presentation rates could INNATE about I if the rate benchmark how general base? it is a mean, of And deck, in tumor you response across we or but guide just of sort the in that, were the sort to that ask historical some specifically like the board. different your of response have if PD in you that-should bit sort rates tables or response

rates Yes. positive corporate That's you Steve. shared I drawn know, a Thanks, say would the, would deck, I from that the are, of have our great response them say question. the pembro studies, data Yes. was small we which XX% in response in for rate these the are which pembro cancer, is frontline is head that PDL-X neck that the label, product one the So on right? approved. in and is strongest

as we The generally others that gotten below eligibility our patients are as in studies the small XX%. are that criteria study. numbers possible They closely the for match from have

of concept our ultimately in So demonstrate cohorts. goal is XX the patient to proof full

it that alone that PD-X benchmarks. show so combination on than is looks better And producing those a would with to you inhibitor like efficacy our will have see based

and earnings mentioned be call there I would then you encouraging that's anything updating you if just any data about also trial. you every I Just you say the one, can are And is there wanted the the of that is progress accrued? monotherapy questions helpful. seeing signals the other think Very you ask

meet wouldn't as to rate cohort wanted the would criteria the response Thanks for like, earnings taking just to the call, something if at us. between update Thanks. point were be I that now and you you in some confirm, a next questions. So

Sure.

not time. So I we on think, know, reporting at any are this individual you cohort

the As we really of patients data patient the the Phase we year. first proud XXXX are clinical of second II I'm said, actually, Phase going we over this XX on have in that enrolled and we are to have half fact in in January I

on intention will now calls. So study that data and time we and monotherapy earnings to at is patients update will included quarterly reporting our at progress it-be be our that of in report right the the

question Tenthoff Piper with from Ted next your comes Sandler. And

emerging Great. hear Since the profile been asking comes to together, that And might II. they where, some they or such multiple other have different used explaining, the LILRBs ask about to is have see this you of with know, that sort so may progress something excited about applications. potentially you about the programs. INNATE when I everyone's profiles for it be different here, that, And you sorry, of will LILRBXs, do much Thanks LILRB

thanks Wiederschain, is the Ted, this Dmitri CSO, question. for

know, specific LILRB family LILRBX. function most LILRBX about that You we well antibodies a potent and with excited pipeline the the building demonstrated of members are block studied and cells. of in are inhibitory function clearly highly These immune LILRBX, clearly

evidence different highly for allow our what And rapid approaching would potent is right new and of non-overlapping one different the are but coverage and bispecific us know, be the our of for I molecules would in using strategy finally, that I development what now may we of think complete activities. know, pillars also an distinct function this we're combination specificities opportunity among a having core members different discovery of us. blockers that at development building in these may is angle. family contexts, clear some and you I say LILRB gives this clinic. I and X exciting LILRB studying, the think that, And specific think cancer is redundancy, combine of for the see how in Jounce And more is family is members. of would You LILRB of the really translational clinical LILRBs, I this members be pipeline mean, there family we

Kasimov Cory from comes JPMorgan. question with next your And

of for them both you regarding Two INNATE.

about monotherapy data know, when success then variety to and important think you with that more or are X about is activity when a Is breadth your indications the update it across you them, of this to lead primarily this how later of cancer you view follow indications combination As think about, compound, designed and year, how be as the in data? finding monotherapy you both is about or do in given activity used evaluating even one a and different have a going arms up, combination?

Sure.

So Cory. thanks,

the is I possibly enough for registration on what we obviously forward data when for the I both, year that are that also fact move is are data question, having quickly will, actually, But path indications, know, which of the right? this possible factors. that studying looking negative be be where really think at first more be to indications. that starting to sets, to enable think And one where your in is, known is have looking So you we will as prognostic biomarkers So we some as biomarkers. those us that that patient we smaller are to evaluate think you year, still answer I we this in are signals across know, or a

better you take for into some so the we that something and the response correlation outcomes these holy you-that And grail, right? between patients. outcomes, kind you see something of if and Because of that worst that really a predicts turn predicts is biomarkers, it can can

we that's is I think I studies that powerful. a to the one panel before, of biomarkers. have And whole I So of of that have really strengths be said going as predictive think the

data be to later the more cancers they some this get needed will starting year. some Now may others, that be of than in

just... planning which remind further as registration And on the your will of for in for I every clinical prioritizing development. question, the And focusing development out we matures, study. are cohort second we data internally, me, have with sorry. plans mapped start sort then we So ones paths we are

the cancer just for a monotherapy product. importance of Yes, activity

Sure.

doing turn and things like So examples in patients. um, naive inhibitor which X, great PD-X inhibitors on top I of I lag is know, from benefit would you PD-X showing, guess to

therapy So going path we since of the beginning terms cancer in the feel clearly combination. of immunotherapy is

adding And so you that monotherapy you that activity, design study drug is whether to not is your a able question to most are drug cohorts PD-X in tried therapy has the is important we inhibitor. it I in SELECT demonstrate to your is inhibitor, if actually think that way prior to their have a what is do to is the we experienced what are combination. in or that show PD-X recent requiring a in And where be a PD-X

just have are are would who we you a the know, people studying, you benchmarks from PD-X alone. those show, also combination then now on therapy, inhibitor So PD-X not a much what of a you expect to progressed indications Most PD-X would inhibitor. coming inhibitor onto the expect from giving and

Your next David from comes question Dai with SMBC.

analysis especially the JTX-XXXX, comment biomarker enroll to to have on patients expansion, support performed you for whether could the any in you additional indications, each? So the expanding X XX

in decision. involved is based is responses, analysis biomarker no responses. that That clinical No, purely on

We will doing when analysis and year the this we of data. full them on reporting the report later biomarker be body

ILTX Got the ILTX personal with companies pathways? other target. have the what it. ILTX decide ILTX of just JTX-XXXX, lead based targeting That And the forward us of move rationale as helpful. for target, Could data, understand to whereas your you help on versus ILTX pursuing a you is are advantages then

question, Dmitri is This Wiederschain thanks the for again. Yes, David.

into advanced enabling JTX-XXXX, and studies. blocker know, LILRBX we IND our specific ILTX potent you As have

candidate And expressed continue to also ILTX ILTX, also be the of a as to overlapping discovery program probably which in natural expressed cells on on on among, future. about ILTX LILRBX, as, non to tumor well. biology cells ILTX, we the stage killer T-cells. have There in as near cells, We hope it is to well for progressing immunosuppressive excited subset program. a CDA clearly bring in are addition distinct myeloid you of development and ILTX example, myeloid But is or know, microenvironment. is subsets this quite we also

So an new really LILRB to brings angle exciting activity.

quite LILRBX family the actually all our of we far excited potent LILRBX for members monospecific are in equally clinic not advancing So LILRB discovering. through LILRBX about and Thanks of blockers question. already. the behind, of well

question next Arthur Your Wainwright. with comes from H.C. He

or Arthur guys on this PFS, criteria is the response just decision the response moving forward? the overall up also make progress to quarter. the on follow congratulations Besides ORR to This you and the look I purely focus want on at for you XXXX rate. the program. Do the

Great, thanks for question. the

So response. response for patients, of the we data, based biomarkers, on development, OS response. expansion on from XX look just totality help expansion looking that guide to patients, of from XX we patients but When will data further the initial at XX to the is be solely at rate, all PFS, is all based that including the

you guys any beyond dose Got tested been for to Did X am tested curious, regarding it. level I dose level just those cohorts is the highest patients. XXX you decide move milligrams? forward, had what

for profile both to at entire our tolerated. XXX really milligrams and also a escalation, as was our we did. because wanted intended of optimize and everyone, in the XXX week throughout the I high Yes, X tumor highest went milligrams remind in recommended weeks. and But XXXX we dose X the was and target we engagement, we we engagement well XXXX as it X dose first blood phase milligrams. dose dose saw complete safety the In And cycle chose target excellent peripheral every at milligrams safety will dosing

that engagement. that really fortunate So is the the And our that all dose able a be very we target for were used is to dose optimizes phase choose of to X patients.

Wells our Fargo. Abbott Nick last is from And with question

while cancel for on going bad enough is having us updating thank poor Beth, patients Ukraine. off, on. those you war It is First there having a in alone, cancel

expect, my So you question met the have and if cohorts criteria are I then how that is, the pseudo-progression can not advising so, for just you confirm go or do seeing are no first investigators? you and INNATE,

So you yes, are correct.

of allow in All about the clinically. of have the so, beyond criteria investigators any pseudo-progression pseudo-progression, regarding in allow waiting to do have but patients therapy. we for beyond continued to and with study progression IO to the do for our enroll XX treatment data terms do a patients follow if either progression We or cohorts doing resist, We are guidance expansion. and decision the response quite just up make of are the continuing completed for investigators. are not treatment well all experienced are particular And we

Okay. response to you really unexpected. could have also stable know, go patients, look at outstanding, would resist allow the for that be go, And something be be if you that they would XX this, terms just in on? the, a you disease, to just term of the here of sort you later then, do perhaps or no, that move Is something that ahead long see that

for requires true a it a Yes. It's response, expansion, response. the

Okay, And for SELECT. one last then great.

have a would do time, been I but TISvopra? So TISvopra, data you ongoing chemo you do. am It naive give you long sure versus that data for long experienced on on is patients a confidence.

You this from could to move second frontline a setting. setting line

a potentially yes, I us know, we data are That could into studies that that clearly collected the literature that leads to believe tumor is you mean, the the or that other doing, in but types. across have take data TIS. this we into we frontline We, setting is certainly there on

Q&A And Thank and ladies our disconnect. Thank today. may concludes this and participating. for for you, gentlemen, program now you you