HC Wainwright Says This Stock Is Well Capitalized For Value Realization Of Pipeline, Despite COVID-19 Uncertainty

  • Given the uncertainty, HC Wainwright moderated its COVID-19 franchise estimates, the primary driver of estimate reductions, and price target reduction to $125 (from $200) on Vir Biotechnology Inc VIR. The analyst maintained a Buy rating on VIR shares.
  • The analyst continues to view Vir's platform, validated with successful antiviral therapies against Ebola and COVID-19, and pipeline, which includes compounds in development for chronic hepatitis B virus (CHB), human immunodeficiency virus (HIV), and influenza (flu), as among the most attractive in the entire biotech sector.
  • Furthermore, the firm believes that with cash and investments of $2.5 billion, Vir is well-capitalized to conduct the studies necessary to achieve the full value of its pipeline that e could generate peak annual revenues of at least $10 billion. 
  • Related: Why Did FDA Pull Authorization For GSK-Vir's COVID-19 Therapy? Read Here.
  • HC Wainwright has confidence in Vir and GlaxoSmithKline Plc's GSK COVID-19 franchise and believes that the collaboration is capable of adjusting to the emerging variants of SARS-CoV-2. 
  • The updated estimates include a risk adjustment (25%) to capture the potential for Xuvudy to be re-authorized without caveats though recognizing the possibility that the program may not be able to move forward in its current form.
  • Price Action: VIR shares are up 3.67% at $19.78 during the market session on the last check Thursday.


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