In a move to further streamline its business, Jounce Therapeutics has unveiled an all-stock merger with the clinical-stage biotech Redx Pharma. This restructuring initiative marks a significant step forward for the innovative biopharmaceutical company.
Jounce Therapeutics stunned the healthcare industry on Wednesday, announcing a staggering 57% reduction in staff due to a lack of funds for its clinical assets, JTX-8064 and vopratelimab. Now, with the two assets set to be dropped as part of the merger, the full impact of the layoffs is becoming clearer.
Thursday morning brought good news for Jounce shareholders, as the company’s stock surged 35%, eliciting an enthusiastic response from investors.
By the end of March, Jounce will have completed its staff cuts, leaving only 47 of its employees to continue to work at its research and development base in Massachusetts. With this will come a new energy of focus and dedication, and the team is excited to take on the challenge.
Redx Pharma is transforming itself to expand its focus and reach, aiming to tackle the devastating effects of fibrotic diseases and cancer. The company will continue to operate under the same name, Redx, as it embarks on this new mission to push the boundaries of science and bring new treatments to those suffering from these conditions.
RXi Pharmaceuticals is leading the charge in the development of a novel therapy for idiopathic pulmonary fibrosis: the next-generation selective Rho kinase 2 (ROCK2) inhibitor RXC007. In a Phase IIa trial, the efficacy and safety of this treatment is currently being evaluated and topline data from the trial is expected by the first quarter of 2024.
Redx Pharma CEO Lisa Anson is now taking the helm of the newly formed company, combining Redx’s tried-and-true small molecule drug discovery with Jounce’s cutting-edge immunotherapy and biologics expertise. Anson is particularly excited to explore the potential of RXC007 in cancer-associated fibrosis and other interstitial lung diseases, a move she says will provide a unique opportunity to make a real difference in the lives of those affected.
Redx and Jounce have come together to form a powerful force in the industry, with Redx stockholders owning a dominant 63% stake in the new venture and Jounce stockholders holding 37%. Together, the two companies will join forces to create a board of directors that reflects the ratio of their respective shares, ensuring that both companies have a presence in the decision-making process.
Shareholders of Redx will soon be able to reap the benefits of the newly proposed merger with Jounce, with each Redx shareholder receiving 0.2105 Jounce shares for every Redx share they own – pending approval from both companies’ shareholders and relevant regulatory bodies.