TLDR
- VIR surged ~60% in Tuesday premarket after announcing a collaboration with Astellas Pharma worth up to $1.37B in milestones
- Upfront deal value totals $335M, including $240M cash and $75M equity at a 50% premium
- Phase 1 VIR-5500 data showed 82% PSA50 decline rate in the highest dose group
- Q4 EPS loss of 31 cents beat the 41-cent estimate; revenue of $64.07M crushed the $23.18M consensus
- Evercore ISI lifted its price target to $18 from $12, keeping an Outperform rating
Vir Biotechnology was trading up nearly 60% in Tuesday premarket, hitting a fresh 52-week high after three catalysts landed in quick succession — a major partnership, Phase 1 trial data, and a stronger-than-expected quarterly earnings report.
The stock was up 59.49% at $11.85 before the open, per Benzinga Pro data.
At the center of it all is a new global collaboration with Astellas Pharma to co-develop VIR-5500, Vir’s investigational PSMAxCD3 bispecific antibody for prostate cancer.
Vir receives $240M in cash plus a $75M equity investment at a 50% premium to market price. Total upfront and near-term payments come to $335M, with up to $1.37B in additional milestone payments down the line.
Astellas leads U.S. commercialization, with profits and losses split equally between both companies.
What the Phase 1 Data Showed
The trial data released Monday covered advanced metastatic castration-resistant prostate cancer patients — those who had progressed after multiple prior treatment lines.
In the highest dose cohorts, 82% of patients achieved PSA50 declines and 53% hit PSA90 declines. Among RECIST-evaluable patients, 45% recorded an objective response.
PSMA-PET imaging confirmed tumor shrinkage across multiple lesions, including visceral metastases.
VIR-5500 monotherapy dose-escalation in late-line mCRPC is now complete. Vir expects to begin dose-expansion cohorts in Q2 2026 and is targeting pivotal Phase 3 trials in 2027.
Combination dosing with enzalutamide in earlier-line patients is still ongoing.
Earnings Beat and Runway
Vir posted a Q4 loss of 31 cents per share, ahead of the 41-cent consensus estimate. Revenue of $64.07M came in nearly three times higher than the $23.18M analysts had expected.
With the Astellas deal proceeds factored in, Vir now expects its cash position to fund operations through Q2 2028.
Analyst Take
Evercore ISI raised its price target on VIR to $18 from $12, maintaining an Outperform rating. The firm called the Astellas deal a validation of VIR-5500’s potential and said its safety profile looks differentiated compared to competing bispecific antibodies in development.
The firm added that the deal enables VIR-5500 to move into earlier treatment lines and reach Phase 3 more efficiently using Astellas’ capital and expertise.
Analyst price targets on VIR now range from $12 to $26.
On the charts, VIR was trading 12.3% above its 20-day SMA and 14.5% above its 100-day SMA. RSI sat at a neutral 50, with MACD showing mild bearish pressure below its signal line heading into Tuesday’s session.
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