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Key Takeaways
- Shares of VIR soared approximately 60% during Tuesday’s premarket session following announcement of an Astellas Pharma collaboration for prostate cancer candidate VIR-5500
- Vir will receive $335M in upfront and near-term payments, with potential for an additional $1.37B in milestone-based compensation
- Clinical trial data revealed an impressive 82% PSA50 response rate among patients receiving the highest dose levels
- Fourth-quarter results exceeded expectations with a loss of 31 cents per share versus consensus of 41 cents; revenue reached $64.07M against forecasts of $23.18M
- Evercore ISI upgraded their price target to $18 from $12 while maintaining an Outperform rating
Vir Biotechnology reached a new 52-week peak during Tuesday’s premarket session, climbing nearly 60% as the company announced a confluence of favorable developments — a major pharmaceutical partnership, encouraging clinical trial outcomes, and quarterly results that topped Wall Street projections.
Shares advanced 59.49% to $11.85 in premarket activity, based on Benzinga Pro tracking data.
The primary catalyst behind the rally was announcement of a strategic alliance with Astellas Pharma centered on VIR-5500, an experimental therapy targeting prostate cancer. Under terms of the agreement, Vir receives $240M in cash alongside a $75M equity investment priced at a 50% premium to market, bringing total upfront and near-term consideration to $335M. Additionally, the biotech company stands to collect up to $1.37B through various development and commercial milestone achievements.
Astellas will spearhead commercialization efforts within the United States, with both companies sharing profits and losses on an equal basis.
Clinical Trial Results for VIR-5500
Newly released Phase 1 trial data for VIR-5500 provided additional momentum for investor enthusiasm. The study enrolled patients with advanced metastatic castration-resistant prostate cancer who had exhausted multiple prior treatment options.
Patients receiving the highest dose levels demonstrated an 82% PSA50 decline rate, while 53% achieved PSA90 reductions. Among evaluable participants, 45% experienced an objective response based on RECIST evaluation criteria.
Tumor reduction was documented across various metastatic sites, including visceral lesions, as confirmed through PSMA-PET imaging technology.
The company plans to initiate monotherapy dose-expansion cohorts during the second quarter of 2026, with pivotal Phase 3 studies slated to begin in 2027.
Fourth Quarter Financial Results and Liquidity
Vir posted a fourth-quarter loss of 31 cents per share, outperforming the consensus estimate calling for a 41-cent loss. Revenue totaled $64.07M, significantly exceeding analyst projections of $23.18M.
Factoring in the capital infusion from Astellas, Vir projects its current cash position will fund operations into the second quarter of 2028.
Wall Street Analyst Commentary
Evercore ISI lifted its price target on VIR shares to $18 from a previous $12 target, reiterating an Outperform rating. The firm highlighted that the Astellas collaboration validates the commercial potential of VIR-5500 and noted the therapy’s differentiated safety profile compared to competing bispecific antibodies under development.
Current analyst price targets for VIR span a range from $12 to $26.
From a technical perspective, VIR was trading 12.3% above its 20-day simple moving average and 14.5% above its 100-day simple moving average prior to Tuesday’s session. The Relative Strength Index registered at a neutral 50 reading, while the MACD indicator displayed modest bearish signals below its signal line.
