By Michael Dabaie 



  Jounce Therapeutics Inc. shares were up 54% to $7.45 in morning trading. 


  Gilead Sciences Inc. earlier said it agreed with Jounce, a clinical-stage company focused on cancer immunotherapies and predictive biomarkers, to exclusively license its JTX-1811 immunotherapy program. 


  The antibody remains on track for filing an investigational new drug application in the first half of 2021, Gilead said. 


  Gilead will make an $85 million upfront payment to Jounce and a $35 million equity investment at a premium, the company said. Jounce may receive up to an additional $685 million in future clinical, regulatory and commercial milestone payments, Gilead said. 


  Jounce will be eligible to receive royalties ranging from high-single digit to mid-teens based upon worldwide sales. 


  Jounce will lead development of JTX-1811 through IND clearance, and thereafter, Gilead will have the sole right to develop JTX-1811. 


  Gilead said it expects the transaction to close in the second half of 2020. 


  "JTX-1811 is complementary to our other oncology candidates and has the potential to be first in a new class of therapies as a treatment for people with both solid tumors and hematological malignancies," said William A. Lee, executive vice president of research at Gilead. 


  Gilead shares were down 1.7% to $65.60. 


  Write to Michael Dabaie at michael.dabaie@wsj.com