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Vir Biotechnology (VIR)
NASDAQ:VIR
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Vir Biotechnology (VIR) AI Stock Analysis

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VIR

Vir Biotechnology

(NASDAQ:VIR)

Rating:56Neutral
Price Target:
$5.50
▼(-5.98%Downside)
Vir Biotechnology's overall stock score is primarily impacted by financial volatility with declining revenue and profitability. Despite a strong balance sheet, cash flow issues raise liquidity concerns. The earnings call offered positive strategic insights, supporting the score, but valuation challenges due to financial losses remain significant.
Positive Factors
Clinical Development
Vir has successfully initiated its Phase 3 ECLIPSE program in chronic hepatitis delta, marking a significant milestone as they aim to develop a potential new standard of care for this high unmet need indication.
Financial Stability
With approximately $1.02B in cash and runway into mid-2027, full ownership of its key assets, and catalysts across both CHD and oncology, Vir is entering a more focused and potentially more investable phase of its lifecycle.
Market Opportunity
The focus on the Hepatitis Delta Virus program indicates a strong potential market opportunity.
Negative Factors
Competitive Positioning
Pasritamig's safety profile could challenge VIR-5500's competitive positioning, with only 9% Grade 1 CRS at RP2D compared to VIR-5500's 25% low-grade CRS rate.
Partnership Challenges
The prospects for a larger HBV partnership could be more challenging due to the recent data results.
Program Performance
The updated 24-week off-treatment data from the Phase 2 program (MARCH) did not meet functional cure thresholds needed to support a Phase 3 investment in the absence of a global partner in chronic hepatitis B virus (CHB).

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

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 primarily through strategic collaborations and partnerships with other pharmaceutical and biotechnology companies. These partnerships often include licensing agreements, milestone payments, and royalty revenues based on the successful development and commercialization of its therapeutic candidates. The company also seeks government grants and contracts to support its research and development efforts. For instance, Vir has entered into significant collaborations with companies like GlaxoSmithKline (GSK) to develop and commercialize antibodies for infectious diseases, including COVID-19 therapies. Revenue is also expected to be generated through the eventual sales of its proprietary products once they receive regulatory approval and are commercialized.

Vir Biotechnology Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Provides insight into which business areas are driving sales, highlighting strengths and potential vulnerabilities in the company's revenue streams.
Chart InsightsVir Biotechnology's revenue from collaborations has shown volatility, with significant fluctuations and recent negative values, reflecting strategic challenges and dependency on partnerships, as highlighted by Alnylam's opt-out. Grant revenue has been relatively stable but modest, while contract revenue saw a notable spike in early 2024, possibly linked to new initiatives like the ECLIPSE Phase III program. Despite financial losses, Vir's strong cash position and progress in oncology and infectious disease programs provide a foundation for future growth, though strategic partnerships remain crucial for advancing key projects.
Data provided by:Main Street Data

Vir Biotechnology Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 4.28%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several significant achievements such as the initiation of the ECLIPSE Phase III program, a strong financial position, and positive updates in the oncology portfolio. However, these were tempered by financial losses, strategic challenges with Alnylam, and dependency on partnerships for the hepatitis B program's progress.
Q1-2025 Updates
Positive Updates
Initiation of ECLIPSE Phase III Program
The ECLIPSE Phase III registrational program for hepatitis delta virus infection was successfully initiated, with the first patient enrolled in ECLIPSE-1 during the first quarter. This milestone positions Vir Biotechnology to potentially establish a new standard of care.
Strong Financial Position
Vir Biotechnology maintains a strong cash position with approximately $1 billion in cash, cash equivalents, and investments, providing a cash runway extending into mid-2027.
Positive Oncology Portfolio Updates
Encouraging data from the PRO-XTEN Dual Masked T-Cell Engager program, with notable partial response rates and favorable safety profiles in HER2-positive colorectal cancer patients and prostate cancer patients.
Advancement in HIV Cure Program
A broadly neutralizing antibody has advanced to development candidate status in the HIV cure program, demonstrating progress in infectious disease immunology.
Negative Updates
Increased Net Loss
Net loss for the first quarter of 2025 was $121 million compared to a net loss of $65.3 million for the same period in 2024, largely due to a decrease in revenue.
Alnylam Opts Out of Profit-Sharing
Alnylam elected not to opt into the profit-sharing arrangement for elebsiran, shifting to a milestone and royalty-based structure. This outcome was anticipated but underscores the challenges in strategic partnerships.
Hepatitis B Program Development Contingent on Partnering
Further development of the hepatitis B program is contingent on securing a development and commercialization partner, indicating potential delays in advancing this program.
Company Guidance
During the first quarter of 2025, Vir Biotechnology provided detailed guidance on its strategic focus and development progress across its infectious disease and oncology portfolios. The company highlighted the initiation of the ECLIPSE Phase III registrational program for hepatitis delta virus (HDV), enrolling the first patient in ECLIPSE-1. They estimate about 7 million active viremic HDV RNA-positive patients globally, with 61,000 in the U.S. and 113,000 in the EU and U.K. Vir highlighted the severe outcomes for HDV patients, noting more than 50% succumb to liver-related death within 10 years without FDA-approved treatments. The company emphasized its strong financial position, ending the quarter with approximately $1 billion in cash, ensuring a cash runway into mid-2027. Key financial metrics included R&D expenses of $118.6 million, driven by a $30 million payment to Alnylam, and SG&A expenses of $23.9 million. The company's oncology progress was marked by advancements in its PRO-XTEN Dual Masked T-Cell Engager program, with encouraging results in colorectal cancer and prostate cancer trials, and the initiation of the Phase I study for VIR-5525 targeting EGFR-expressing tumors. Vir also noted potential partnerships to maximize value from its PRO-XTEN platform.

Vir Biotechnology Financial Statement Overview

Summary
Vir Biotechnology faces financial volatility with declining revenue and profitability. Despite a strong balance sheet with low leverage, the company has cash flow challenges highlighting potential liquidity issues. Stabilizing revenue and improving operational efficiencies are necessary for better financial performance.
Income Statement
40
Negative
Vir Biotechnology experienced significant revenue fluctuations, with a sharp decline from 2022 to 2023 and further into TTM (Trailing-Twelve-Months). The gross profit margin has decreased substantially, and the company recorded negative EBIT and net profit margins in recent periods, reflecting financial instability. Despite past profitability, recent performance indicates challenges in maintaining revenue and controlling costs.
Balance Sheet
60
Neutral
The company maintains a solid equity position with a strong equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent leverage use. However, declining assets and equity from 2022 to TTM show potential risks if revenue and profitability do not improve.
Cash Flow
45
Neutral
Operating cash flow has deteriorated significantly, leading to negative free cash flow in recent periods. The negative free cash flow to net income ratio suggests challenges in generating cash from operations. Despite high cash reserves, the negative trends in cash flow metrics indicate potential liquidity issues if not addressed.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue74.20M86.18M1.58B1.09B67.25M
Gross Profit73.36M83.42M1.43B1.02B-234.33M
EBITDA-537.61M-664.85M833.07M420.75M-289.80M
Net Income-521.96M-615.06M515.84M528.58M-298.67M
Balance Sheet
Total Assets1.40B1.92B2.80B1.95B918.76M
Cash, Cash Equivalents and Short-Term Investments990.38M1.52B2.40B708.14M736.86M
Total Debt97.89M124.54M127.97M133.56M66.56M
Total Liabilities248.43M328.82M724.13M522.42M201.91M
Stockholders Equity1.15B1.59B2.08B1.43B716.85M
Cash Flow
Free Cash Flow-453.65M-800.36M1.60B-69.41M-197.49M
Operating Cash Flow-446.35M-778.78M1.66B-47.59M-190.94M
Investing Cash Flow499.37M164.63M-1.19B-140.81M-9.86M
Financing Cash Flow4.39M7.48M34.76M100.33M529.47M

Vir Biotechnology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.85
Price Trends
50DMA
5.19
Positive
100DMA
5.78
Negative
200DMA
7.21
Negative
Market Momentum
MACD
0.12
Negative
RSI
58.00
Neutral
STOCH
66.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIR, the sentiment is Positive. The current price of 5.85 is above the 20-day moving average (MA) of 5.48, above the 50-day MA of 5.19, and below the 200-day MA of 7.21, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 66.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$1.40B-57.92%-13.37%2.57%
56
Neutral
$808.69M-44.59%-73.79%-5.24%
55
Neutral
$1.03B-63.17%-40.51%-35.07%
53
Neutral
$889.11M-50.67%41.86%10.48%
52
Neutral
$7.62B0.05-63.03%2.44%16.33%0.31%
43
Neutral
$1.07B2.31-50.47%-100.00%94.68%
42
Neutral
$1.14B-51.85%0.71%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VIR
Vir Biotechnology
5.76
-4.90
-45.97%
SYRE
Spyre Therapeutics
17.60
-12.51
-41.55%
NTLA
Intellia Therapeutics
12.78
-13.64
-51.63%
RCUS
Arcus Biosciences
9.87
-5.11
-34.11%
NRIX
Nurix Therapeutics
11.53
-9.51
-45.20%
PHVS
Pharvaris
20.05
2.61
14.97%

Vir Biotechnology Corporate Events

Executive/Board ChangesShareholder Meetings
Vir Biotechnology Holds 2025 Annual Stockholder Meeting
Neutral
May 29, 2025

On May 29, 2025, Vir Biotechnology, Inc. held its 2025 Annual Meeting of Stockholders, where key decisions were made. Stockholders elected two Class III directors, approved executive compensation, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (VIR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Vir Biotechnology stock, see the VIR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Vir Biotechnology Presents Promising Phase 2 Hepatitis B Data
Neutral
May 9, 2025

On May 9, 2025, Vir Biotechnology announced 24-week post-treatment data from its MARCH Phase 2 study on tobevibart and elebsiran for chronic hepatitis B, presented at the EASL Congress in Amsterdam. The study showed HBsAg loss in 17% and 21% of participants with low baseline HBsAg levels, using the combination with or without pegylated interferon alpha. Despite the promising results, Vir has not secured a development partner for further Phase 3 trials and will streamline the final stages of the Phase 2 study, aligning with its focus on the ECLIPSE Phase 3 program for hepatitis delta and oncology initiatives. The company maintains its cash runway guidance into mid-2027.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 18, 2025