TLDR
- Vir Biotechnology (VIR) hit a 52-week high Tuesday after announcing a major partnership with Astellas Pharma for prostate cancer treatment VIR-5500.
- The deal includes $335 million in upfront and near-term payments, plus up to $1.37 billion in future milestones.
- Phase 1 trial data showed VIR-5500 monotherapy had an 82% PSA50 decline rate in the highest dose cohorts.
- Q4 earnings beat estimates with a loss of 31 cents vs. the expected 41 cents, and revenue of $64.07 million vs. $23.18 million expected.
- Evercore ISI raised its price target on VIR from $12 to $18, maintaining an Outperform rating.
Vir Biotechnology (VIR) is having a very good Tuesday. The stock shot up nearly 60% in premarket trading, hitting a new 52-week high after a string of positive news dropped Monday into Tuesday morning.
The catalyst? A multi-billion dollar partnership with Japanese drugmaker Astellas Pharma, fresh Phase 1 clinical data for its lead oncology asset, and a Q4 earnings beat that left analyst estimates in the dust.
Vir will receive $335 million in upfront and near-term payments under the deal. That breaks down to $240 million in cash and $75 million in equity investment at a 50% premium to market price.
Raymond James Upgrades $VIR to Strong Buy from Outperform, Raises PT to $19 from $12
Analyst comments: "Monday, after market close, Vir Biotechnology dropped a barrage of press releases, including the full data from its upcoming ASCO GU presentation for VIR-5500, an announced… pic.twitter.com/bY5cnWRRPp
— Wall St Engine (@wallstengine) February 24, 2026
Beyond the upfront, Vir is eligible for up to $1.37 billion in additional milestone payments as VIR-5500 advances through development.
Under the terms of the collaboration, Astellas will lead commercialization of VIR-5500 in the U.S., with profits and losses split equally between the two companies.
VIR-5500 is a PSMAxCD3 dual-masked bispecific antibody being studied in advanced metastatic castration-resistant prostate cancer (mCRPC).
Phase 1 Data Turns Heads
The Phase 1 data released Monday showed VIR-5500 monotherapy was well-tolerated in patients who had already been through multiple lines of therapy — a tough-to-treat group.
In the highest dose cohorts, PSA50 declines were seen in 82% of patients, and PSA90 declines in 53%. Among evaluable patients, 45% showed an objective response by RECIST criteria.
Dose-dependent activity was seen across the full treatment group, with PSMA-PET imaging confirming tumor shrinkage across multiple lesions, including visceral metastases.
Vir has completed monotherapy dose-escalation in late-line mCRPC and is continuing combination dose-escalation with enzalutamide in earlier-line patients.
The company plans to kick off monotherapy dose-expansion cohorts in Q2 2026, with pivotal Phase 3 trials targeted for 2027.
Earnings Beat and Cash Runway
On the financial side, Vir posted a Q4 loss of 31 cents per share, beating the consensus estimate of a 41-cent loss. Revenue came in at $64.07 million, well ahead of the $23.18 million analysts had expected.
With the Astellas cash infusion factored in, Vir says it now has enough runway to fund operations into Q2 2028.
From a technical standpoint, the stock 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, while MACD indicated some bearish pressure below its signal line.
Evercore ISI wasted little time responding. The firm raised its price target on VIR from $12 to $18 while keeping its Outperform rating intact.
Evercore called the Astellas deal a validation of VIR-5500’s potential and said the safety profile looks differentiated compared to other bispecific antibodies in development. The firm noted the deal could have positive implications for the rest of Vir’s bispecific pipeline.
Analyst price targets on VIR now range from $12 to $26, with the stock trading at $7.43 at last check prior to the premarket surge.
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