TLDR
- VIR stock jumped ~60% in premarket Tuesday after a major Astellas Pharma partnership for prostate cancer drug VIR-5500
- The deal includes $335M upfront, plus up to $1.37B in future milestone payments
- Phase 1 data showed an 82% PSA50 decline rate in the highest dose patient group
- Q4 loss of 31 cents beat the 41-cent consensus; revenue of $64.07M crushed the $23.18M estimate
- Evercore ISI raised its price target from $12 to $18, maintaining Outperform
Vir Biotechnology hit a 52-week high in Tuesday premarket trading, surging close to 60% after a run of positive news hit all at once — a blockbuster partnership, fresh clinical data, and an earnings beat.
The stock was up 59.49% at $11.85 in premarket, according to Benzinga Pro data.
The main driver was a new collaboration with Astellas Pharma to develop and commercialize VIR-5500, its investigational prostate cancer treatment. Vir will receive $240M in cash and a $75M equity investment at a 50% premium, totaling $335M in upfront and near-term payments. On top of that, Vir is eligible for up to $1.37B in further milestone payments.
Astellas takes the lead on U.S. commercialization, with profits and losses split equally.
VIR-5500 Phase 1 Data
Fresh Phase 1 data for VIR-5500 gave the market more to cheer about. The trial focused on advanced metastatic castration-resistant prostate cancer patients who had already failed multiple lines of treatment.
In the highest dose cohorts, 82% of patients hit PSA50 declines and 53% hit PSA90 declines. Among evaluable patients, 45% showed an objective response by RECIST criteria.
Tumor shrinkage was confirmed across multiple lesions, including visceral metastases, via PSMA-PET imaging.
Vir plans to start monotherapy dose-expansion cohorts in Q2 2026, with pivotal Phase 3 trials targeted for 2027.
Q4 Earnings and Cash Position
Vir reported a Q4 loss of 31 cents per share against a consensus estimate of 41 cents. Revenue came in at $64.07M, well ahead of the $23.18M analysts had penciled in.
With the Astellas cash included, Vir now expects its funding to cover operations through Q2 2028.
Analyst Reaction
Evercore ISI raised its price target on VIR from $12 to $18, keeping its Outperform rating. The firm said the Astellas deal validates VIR-5500’s potential and that its safety profile looks differentiated versus other bispecific antibodies in development.
Analyst price targets on VIR currently range from $12 to $26.
Technically, VIR was trading 12.3% above its 20-day SMA and 14.5% above its 100-day SMA heading into Tuesday. RSI sat at a neutral 50, with MACD showing some mild bearish pressure below its signal line.
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