Vir Biotechnology, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joseph Stringer from Needham maintained a Buy rating on the stock and has a $14.00 price target.
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Joseph Stringer has given his Buy rating due to a combination of factors surrounding Vir Biotechnology’s recent ex-U.S. deal for its Phase 3 Hepatitis Delta Virus (HDV) program. The agreement with Norgine, a European specialty pharmaceutical company, includes favorable terms such as a total potential value of $650 million, with $65 million upfront and additional payments tied to milestones. This partnership leverages Norgine’s strong commercialization capabilities in Europe, creating a promising opportunity for success in those markets.
Additionally, the deal reflects beneficial financial dynamics for Vir, including royalties ranging from the mid-teens to high 20% and Norgine agreeing to cover 25% of future costs. Furthermore, this agreement extends Vir’s cash runway to the fourth quarter of 2027, boosting its financial stability. Stringer assessed the timing and terms of this arrangement as advantageous, contributing to the stock’s positive prospects and supporting the Buy recommendation.
According to TipRanks, Stringer is a 5-star analyst with an average return of 23.8% and a 47.03% success rate. Stringer covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Moderna, and Ionis Pharmaceuticals.
In another report released on December 12, H.C. Wainwright also maintained a Buy rating on the stock with a $15.00 price target.