Jounce Therapeutics entered into a $2.5 billion investment agreement with Summit, N.J.-based Celgene to develop a new immunotherapy drug, according to Reuters.
Jounce's drug, called JTX-2011, helps stimulate the immune system to fight off cancer. The company is targeting biological markers on tumors, hoping to provide more specific, individualized therapy matches for patients.
The Cambridge, Mass.-based company will receive $225 million upfront from Celgene for an option to jointly develop JTX-2011, among other new treatments. Additionally, Celgene will invest $36 million in Jounce for a minority stake.
Jounce, which was founded three years ago and only has 60 employees, could earn up to $2.3 billion in further milestone payments.
The company expects to start clinical trials for JTX-2011 later this year.