Vir Inks $135M Upfront Deal with Gilead for Dual-Masked T-Cell Engagers
VIR has more than doubled off its 52-week low of $4.815.
Summary
Vir Biotechnology signed a multi-program collaboration with Gilead Sciences to discover and develop three novel PRO-XTEN dual-masked T-cell engagers for solid tumors. Gilead gets exclusive rights to develop and commercialize the candidates; Vir handles discovery and optimization. Vir receives $90 million upfront ($65 million cash plus a $25 million equity investment at a 30% premium) and up to $45 million in near-term preclinical milestones, with up to $1.74 billion in further milestones and tiered royalties. Gilead agreed to buy 1,765,486 Vir shares at $14.16 per share for about $25 million, with standstill, voting and lockup provisions expiring one year after closing. This is a major validation of Vir's PRO-XTEN platform and provides non-dilutive cash. The deal follows the FDA Fast Track designation for VIR-5500 earlier this month and the recent CFO transition. Gilead's involvement adds credibility and resources to advance the oncology pipeline.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Gilead agreed to buy 1,765,486 Vir shares at $14.16 per share for about $25 million, with standstill, voting and lockup provisions expiring one year after closing.
At the time of this announcement, VIR was trading at $10.73 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $4.82 to $12.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.