Vir Biotechnology (VIR) AI Stock Analysis

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Vir Biotechnology

(NASDAQ:VIR)

51Neutral

Vir Biotechnology's financial challenges are notable, with declining revenues and profitability. While there are promising developments in its clinical pipeline, particularly in oncology, the stock faces technical and valuation headwinds. A strong cash position and strategic focus provide some positives, but overall financial performance and market trends weigh heavily on the score.

Positive Factors

Clinical Trials

Vir's Phase 3 ECLIPSE clinical trials are on track to begin, aiming to support marketing applications in the US and Europe.

Financial Performance

The company ended 4Q24 with approximately $1.1B in cash and investments, providing financial runway into mid-2027.

Negative Factors

Market Concerns

The company's shares are expected to remain range-bound over the near-to-midterm due to concerns over the value-accretive potential from HBV phase 2 and HDV phase 3 trial updates.

Pipeline Focus

The acquisition of the TCEs notes an adjustment in the company’s longer-term focus, filling out the pipeline between late-stage development of its HBV/HDV franchise and earlier stage development of its oncology-focused dual-masked TCEs.

Vir Biotechnology (VIR) vs. S&P 500 (SPY)

Market Cap

$758.40M

Dividend YieldN/A

Average Volume (3M)1.39M

Price to Earnings (P/E)―

Beta (1Y)0.84

Revenue Growth-13.90%

EPS Growth16.56%

CountryUS

Employees408

SectorHealthcare

Sector Strength70

IndustryBiotechnology

Share Statistics

EPS (TTM)-3.83

Shares Outstanding137,143,280

10 Day Avg. Volume1,558,420

30 Day Avg. Volume1,391,680

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)13.00

Price to Cash Flow (P/CF)-2.70

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.67

Price Target Upside545.03% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Vir Biotechnology Business Overview & Revenue Model

Company DescriptionVir Biotechnology, Inc., a commercial-stage immunology company, develops therapeutic products to treat and prevent serious infectious diseases. It develops Sotrovimab (VIR-7832), a SARS-CoV-2-neutralizing mAbs to treat and prevent COVID-19 infection under the Xevudy brand; VIR-2218 and VIR-3434 for the treatment of hepatitis B virus; VIR-2482 for the prevention of influenza A virus; and VIR-1111 for the prevention of human immunodeficiency virus. The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited and Brii Biosciences Offshore Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with The Rockefeller University and MedImmune, Inc.; collaboration with WuXi Biologics and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals SA. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. for the manufacture of SARS-COV-2 antibodies; and clinical collaboration with Gilead Sciences, Inc. for chronic hepatitis B virus. Vir Biotechnology, Inc. was incorporated in 2016 and is headquartered in San Francisco, California.

How the Company Makes MoneyVir Biotechnology generates revenue through a combination of product sales, licensing agreements, and strategic collaborations. The company's key revenue streams include milestone and royalty payments from partnerships with pharmaceutical companies, such as its collaboration with GlaxoSmithKline for the development and commercialization of monoclonal antibodies for the treatment of COVID-19. Additionally, Vir monetizes its proprietary technology platforms and intellectual property by entering into licensing agreements with other firms in the biotechnology and pharmaceutical sectors. Government grants and funding for research and development initiatives also contribute to its earnings.

Vir Biotechnology Financial Statement Overview

Summary

Vir Biotechnology faces financial challenges with declining revenues and profitability. The balance sheet is stable with low leverage, but cash flow difficulties persist, impacting operational flexibility. The company needs to improve revenue generation and cash flow management to enhance financial health.

Income Statement

Negative

Vir Biotechnology has struggled with profitability over the years, moving from a profitable year in 2022 to substantial losses in 2023 and 2024. The net profit margin has been negative in recent years, with a significant decline in revenue from 2022 to 2024, indicating challenges in maintaining revenue growth. The consistent negative EBIT and EBITDA margins further emphasize profitability issues.

Balance Sheet

Positive

The company maintains a strong equity position with a high equity ratio, indicating a solid foundation relative to its total assets. The debt-to-equity ratio is low, suggesting limited leverage and financial risk. However, the decrease in stockholders' equity from 2022 to 2024 reflects potential issues in maintaining asset value or profitability.

Cash Flow

Neutral

Vir Biotechnology's cash flow situation is challenging, with consistently negative free cash flow in recent years, highlighting operational inefficiencies or high capital expenditures. The operating cash flow to net income ratio is negative, indicating difficulties in converting income into cash. However, substantial cash and short-term investments provide a buffer.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
74.20M	86.18M	1.58B	1.09B	67.25M
	Gross Profit
73.36M	83.42M	1.43B	1.02B	-234.33M
	EBIT
-587.16M	-684.30M	833.07M	276.89M	-296.98M
	EBITDA
-537.61M	-664.85M	833.07M	420.75M	-289.80M
	Net Income Common Stockholders
-521.96M	-615.06M	515.84M	528.58M	-298.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
990.38M	1.52B	2.40B	708.14M	736.86M
	Total Assets
1.40B	1.92B	2.80B	1.95B	918.76M
	Total Debt
90.14M	124.54M	127.97M	133.56M	66.56M
	Net Debt
-222.19M	-117.04M	-720.66M	-214.25M	-370.02M
	Total Liabilities
248.43M	328.82M	724.13M	522.42M	201.91M
	Stockholders Equity
1.15B	1.59B	2.08B	1.43B	716.85M
Cash Flow		Free Cash Flow
-453.65M	-800.36M	1.60B	-69.41M	-197.49M
	Operating Cash Flow
-446.35M	-778.78M	1.66B	-47.59M	-190.94M
	Investing Cash Flow
499.37M	164.63M	-1.19B	-140.81M	-9.86M
	Financing Cash Flow
4.39M	7.48M	34.76M	100.33M	529.47M

Vir Biotechnology Technical Analysis

Technical Analysis Sentiment

Negative

Last Price5.53

Price Trends

50DMA

7.87

Negative

100DMA

8.21

Negative

200DMA

8.36

Negative

Market Momentum

MACD

-0.68

Positive

RSI

34.59

Neutral

STOCH

32.43

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIR, the sentiment is Negative. The current price of 5.53 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 7.87, and below the 200-day MA of 8.36, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIR.

Vir Biotechnology Risk Analysis

Vir Biotechnology disclosed 60 risk factors in its most recent earnings report. Vir Biotechnology reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Vir Biotechnology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIR	51 Neutral	$758.40M	―	-38.09%	―	-13.90%	16.56%
RCUS	49 Neutral	$865.78M	―	-59.77%	―	120.51%	25.37%
NRIX	48 Neutral	$696.79M	―	-64.16%	―	-30.25%	-5.92%
Sector *	48 Neutral	$6.36B	1.19	-46.31%	2.67%	19.41%	1.23%
NTLA	41 Neutral	$767.06M	―	-54.00%	―	59.55%	3.09%
SYRE	38 Underperform	$736.34M	2.31	-42.90%	―	-100.00%	94.68%
PHVS	29 Underperform	$653.92M	―	-41.43%	―	―	0.71%

* Healthcare Sector Average

Performance Comparison

VIR

Vir Biotechnology

5.53

-3.04

-35.47%

SYRE

Spyre Therapeutics

12.22

-24.98

-67.15%

NTLA

Intellia Therapeutics

7.41

-15.51

-67.67%

RCUS

Arcus Biosciences

8.18

-8.11

-49.79%

NRIX

Nurix Therapeutics

9.14

-6.32

-40.88%

PHVS

Pharvaris

12.00

-8.15

-40.45%

Vir Biotechnology Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -39.89% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Positive

Vir Biotechnology reported a transformative year with significant advancements in their pipeline, particularly in the oncology and infectious disease sectors. The financial position is strong with improved cost management leading to a reduced net loss and a solid cash runway. However, the promising clinical results are from heavily pre-treated populations, and there is a reliance on partnerships for the hepatitis B program. Overall, the highlights and strategic advancements outweigh the challenges.

Highlights

Transformative Year for Vir Biotechnology

2024 was described as transformative, with significant strides made in oncology and infectious disease programs, positioning Vir Bio at the forefront of innovative therapies.

ECLIPSE Phase III Program Initiation

Preparations for the ECLIPSE Phase III program in hepatitis delta are underway, with initiation expected in the first half of the year. Regulatory designations received include U.S. FDA breakthrough therapy and Fast Track designation, as well as EMA PRIME designation and Orphan Drug status.

Promising T-cell Engager Results

VIR-5818 and VIR-5500 T-cell engagers showed promising early signs of clinical activity in colorectal and prostate cancer, respectively, with encouraging safety profiles and impressive PSA responses.

Strong Financial Position

The company has a cash runway extending into mid-2027, achieved by significantly reducing operating expenses and cash burn.

Significant Financial Improvements

R&D expenses decreased by approximately 30% year-over-year, and G&A expenses were reduced by 32% year-over-year. Net loss decreased by approximately 32% from the previous year.

Lowlights

Heavily Pre-treated Patient Populations

The promising results from T-cell engagers are observed in heavily pretreated patient populations who have exhausted all standard of care options, indicating a challenging patient demographic.

Dependency on Partnerships for HBV Program

The hepatitis B program will only move forward with a development and commercialization partner, indicating dependency on external collaborations for progress.

Company Guidance

During the call, Vir Biotechnology provided guidance for 2025, highlighting several key metrics and strategic priorities. The company is focused on advancing its ECLIPSE Phase III program for hepatitis delta, which is expected to initiate in the first half of 2025. Vir has secured significant regulatory designations, including FDA breakthrough therapy and Fast Track, as well as EMA PRIME and Orphan Drug status, underscoring the potential impact of its combination therapy. For its oncology portfolio, Vir is progressing with its PRO-XTEN platform, with promising early data in HER2 and PSMA targeted T-cell engagers showing strong clinical activity. The company plans to initiate a Phase I study for its EGFR targeted T-cell engager in the first half of 2025. Financially, Vir reported a strong position with $1.1 billion in cash, cash equivalents, and investments, providing a runway into mid-2027. The company has also achieved significant reductions in R&D and G&A expenses, reflecting a disciplined approach to capital allocation and cost management.

Vir Biotechnology Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Vir Biotechnology Announces Leadership Change in 2025

Neutral

Jan 30, 2025

On January 24, 2025, Vir Biotechnology announced the departure of their Executive Vice President and Chief Technology Officer, Ann (Aine) M. Hanly, Ph.D., effective February 26, 2025. The company appointed Maninder Hora, Ph.D. as her successor, effective February 27, 2025, which indicates a strategic shift in leadership that could impact the company’s operational dynamics and stakeholder confidence.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.