Jounce Therapeutics, Inc.

Jounce reported no revenue in the third quarter of 2022 or 2021. R&D expense was $23.8 million versus $23.3 million a year ago, and G&A expense was $7.7 million versus $6.9 million. Net loss was $31.0 million, or $0.60 per share, compared with a net loss of $30.1 million, or $0.59 per share, in the prior-year quarter. Cash, cash equivalents and investments were $130.3 million at September 30, 2022, down from $220.2 million at December 31, 2021. Management reiterated cash runway into the first quarter of 2024 and said full-year 2022 growth cash burn is expected to be at the lower end of the approximately $115 million to $130 million range.

Richard Murray framed the quarter around continued execution on the company’s oncology pipeline, especially the INNATE study for JTX-8064, and said the goal is a meaningful immunotherapy for patients with limited options. He said the company delayed broader Phase 2 disclosure because it wants to present a complete and interpretable dataset, and that it will not have that by year-end. His tone was cautious but still constructive, emphasizing that Jounce remains focused on high-quality data and future milestones.

Kim Drapkin said the balance sheet ended the quarter with $130.3 million in cash, cash equivalents and investments, and noted the $15 million Gilead milestone is expected in the fourth quarter of 2022. She walked through third-quarter spending: R&D of $23.8 million, G&A of $7.7 million, and net loss of $31.0 million, with higher R&D driven by manufacturing and lab supply purchases and higher G&A tied to compensation and headcount. She also reiterated runway into Q1 2024 and said 2022 growth cash burn should land at the low end of the $115 million to $130 million range.

Analysts focused on whether the delay in INNATE data was due to competitive reasons or simply immaturity; management said it was about the data needing more time and denied a competitive motive. Several questions probed what it takes for a cohort to advance, and Beth Trehu said expansion generally requires a 10% or greater response rate, with a higher bar of 20% in first-line head and neck cancer, but that final interpretation also depends on qualitative factors and mature confidence intervals versus PD-1 benchmarks. Questions also covered biomarkers, Merck’s MK-4830 timing, and future combinations; management said biomarker analyses will be done once the clinical data mature, Merck’s timing is unknown, and chemo combinations for JTX-8064 remain possible later if the data support a registration path.