Vir Biotechnology Inc. (NASDAQ:VIR) announced a major collaboration with Gilead Sciences Inc. (NASDAQ:GILD) to create three novel T-cell engagers (TCEs) aimed at treating solid tumors.
The agreement grants Gilead exclusive rights to develop and commercialize these new therapies, potentially revolutionizing treatments for cancers with significant unmet needs.
• Vir Biotechnology stock is trending lower. Why is VIR stock trading lower?
Leveraging Advanced Technologies
Vir Biotechnology will utilize its expertise in protein engineering and its proprietary dAIsY platform, which employs AI for the rapid optimization of TCEs.
Additionally, the company will implement its PRO-XTEN masking technology. These combined efforts aim to develop TCEs that exhibit potent anti-tumor activity alongside a broad therapeutic index.
Financial Terms and Milestones
Under the agreement’s terms, Vir is responsible for the discovery and optimization of the candidates. In return, the company will receive up to $135 million in upfront and near-term preclinical milestone payments.
This includes $65 million in cash and a $25 million equity investment by Gilead at a 30% premium.
Furthermore, Vir stands to gain up to $1.74 billion in subsequent development, regulatory, and commercial milestones.
The deal also includes tiered royalties on net sales, ranging from high single digits to low double digits.
In February, Vir Biotechnology collaborated with Astellas Pharma Inc. to advance VIR-5500, an investigational treatment for prostate cancer. Vir Biotechnology received $335 million in upfront and is expected to receive near-term milestone payments, including $240 million in cash and $75 million in equity investment at a 50% premium.
GILD/VIR Price Action: Gilead Sciences shares were up 2.67% at $151.87, and Vir Biotechnology shares were down 1.60% at $10.44 at the time of publication on Wednesday, according to Benzinga Pro data.
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