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Vir Biotechnology (VIR)
NASDAQ:VIR
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Vir Biotechnology
(NASDAQ:VIR)
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Rating:63Neutral
Price Target:
$10.00
▲(0.00% Upside)
Action:ReiteratedDate:02/25/26
The score is lifted by strong, improving catalysts from the latest earnings call (Astellas partnership terms, extended cash runway, and encouraging early clinical data with a defined development plan) and supported by bullish technical trend signals. It is held back primarily by weak financial performance (continued large losses and cash burn with volatile, milestone-driven revenue) and a negative P/E that underscores ongoing unprofitability.
Positive Factors
Strategic Astellas collaboration and upfront funding
The Astellas deal materially strengthens Vir's structural funding and commercialization pathway: sizable upfront cash and equity, large milestone capacity, shared development costs and a U.S. profit-split option reduce Vir's standalone funding need, accelerate global reach, and lower execution risk across pivotal programs over the next 2–3 years.
Compelling Phase I efficacy signals for VIR-5500
Robust, dose-dependent antitumor activity across PSA, RECIST and PSMA-PET in heavily pretreated mCRPC patients provides durable biological proof-of-concept. These consistent multi-modality signals materially increase the likelihood of a successful pivotal design and strengthen long-term commercial potential if replicated in expansion and later-stage trials.
Platform validation and pipeline optionality (PRO-XTEN)
Clinical validation of the PRO-XTEN masking approach creates a durable competitive advantage: it enables higher, less frequent dosing with lower systemic toxicity, broadens tumor targets, and multiplies downstream opportunities across multiple programs, increasing portfolio optionality and long-term value beyond a single asset.
Negative Factors
Sustained cash burn and negative cash generation
Persistent negative operating and free cash flow in recent years creates structural funding risk despite improved cash from deals. Continued burn pressures balance-sheet flexibility, may necessitate further partnerships or financing, and elevates dilution or reprioritization risks if clinical programs take longer or cost more than planned.
Small, early and heavily pretreated clinical dataset
Efficacy summaries rely on small, subset analyses in heavily pretreated patients, leaving questions on reproducibility and external validity. This increases the probability of larger confirmatory trials and extended follow-up requirements, meaning the path to broad label claims and commercial adoption remains contingent on future, resource-intensive studies.
Dependence on third‑party conditions and obligations
Material near-term financings and strategic benefits are contingent on regulatory clearances and third‑party obligations that can reduce net proceeds or delay access to funds. This structural dependency constrains liquidity planning and could require additional funding or renegotiation if third‑party claims or regulatory timing are adverse.
Vir Biotechnology (VIR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.32B
Dividend YieldN/A
Average Volume (3M)2.04M
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-78.55%
EPS Growth7.74%
CountryUS
Employees408
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.31
Shares Outstanding139,517,270
10 Day Avg. Volume2,444,584
30 Day Avg. Volume2,035,879
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.09
Price to Sales (P/S)12.18
P/FCF Ratio-2.11
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue19.61
Enterprise Value/Gross Profit19.61
Enterprise Value/Ebitda-2.98
Forecast
1Y Price Target
$19.57Price Target Upside95.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-2.9
Revenue Forecast (FY)$11.83M
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 the development and commercialization of its therapeutic products. Key revenue streams include sales of approved products, licensing agreements, and collaborations with pharmaceutical companies. The company has entered into significant partnerships, such as its collaboration with GlaxoSmithKline for the development of COVID-19 treatments, which can lead to milestone payments and royalties on future sales. Additionally, Vir may receive funding from government grants and contracts, especially during public health emergencies, contributing to its financial earnings.
Vir Biotechnology Key Performance Indicators (KPIs)
Any
Revenue by Segment
Provides insight into which business areas are driving sales, highlighting strengths and potential vulnerabilities in the company's revenue streams.
Provides insight into which business areas are driving sales, highlighting strengths and potential vulnerabilities in the company's revenue streams.
Data provided by:
The Fly
The FlyVir Biotechnology Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: a strategically valuable collaboration with Astellas that provides significant upfront capital, shared development burden, and global commercialization reach, together with compelling Phase I clinical data for VIR-5500 showing dose-dependent deep PSA declines, radiographic responses (45% ORR in RECIST-evaluable at high doses), limited high-grade CRS, and encouraging durability signals. Financial discipline improved in 2025 (R&D down 10%, SG&A down 23%, net loss reduced ~16%), and the company reports a strengthened cash position and runway into Q2 2028 when incorporating recent agreements. Key risks remain: the dataset is still early and relatively small, there are isolated higher-grade safety events (including two blurred-vision treatment-related discontinuations and one early Grade 3 CRS), certain payments are subject to third-party obligations and regulatory waiting periods, and continued dose optimization and longer follow-up are needed to confirm durability and broader applicability. Overall, the positives (deal, clinical signal, safety profile, financial improvements) substantially outweigh the current lowlights, though execution and maturation of data remain critical.Q4-2025 Updates
Positive Updates
Strategic Collaboration with Astellas
Vir announced a global co-development and co-commercialization collaboration with Astellas for VIR-5500. Key terms include $315M upfront (comprised of $240M cash and $75M equity at $10.36/share), a $20M manufacturing tech-transfer milestone expected by mid-2027, up to $1.37B in additional development/regulatory/ex-U.S. commercial milestones, and total potential combined upfront and milestone payments of $1.7B. U.S. profits to be split 50/50; Vir has an option to co-promote in the U.S.; Astellas has exclusive ex-U.S. rights while Vir is entitled to tiered double-digit royalties and sales milestones; global development costs shared 40% Vir / 60% Astellas. Closing is subject to Hart-Scott-Rodino waiting period.
Compelling Phase I Efficacy Signals for VIR-5500
Phase I (cutoff Jan 9, 2026) enrolled 58 heavily pretreated mCRPC patients. At Q3-week doses ≥3,000 µg/kg (primary development focus): 11 RECIST-evaluable patients produced a 45% objective response rate (5 responders: 4 confirmed, 1 pending) and a 64% disease control rate. PSA outcomes were strong: 82% achieved PSA50, more than 50% achieved PSA90, and nearly 33% achieved PSA99 in the reported dataset. Dose-dependent antitumor activity was observed across PSA, RECIST and PSMA-PET measures.
Favorable Safety Profile and Therapeutic Window
No dose-limiting toxicities observed across dose-escalation cohorts; limited cytokine release syndrome (CRS) events predominately Grade 1 (fever) and Grade 2, with no Grade 3 CRS observed at doses ≥3,000 µg/kg. Overall, Grade ≥3 treatment-related adverse events occurred in 12% of patients and were mainly laboratory abnormalities. Prophylactic steroids or IL-6 blockade were generally not required (explored only in 3 patients at the highest 4,000 µg/kg cohort).
Durability Signals and Notable Case Studies
Several patients demonstrated durable responses with continued therapy up to 27 weeks in the dataset and illustrative case studies showing durable responses up to ~12 months, including complete resolution of multiple liver metastases and PSA99 declines in heavily pretreated patients with visceral disease.
Platform Validation (PRO-XTEN Dual Masking)
Data provide clinical validation for the PRO-XTEN dual masking approach: reduced systemic T-cell activation/CRS, ability to dose higher with less frequent administration (Q3-week preference), extended half-life via XTEN masks, and concordant tumor engagement across PSA, RECIST and PSMA-PET metrics—supporting broader pipeline potential (HER2, EGFR programs and 7 preclinical candidates).
Operational and Development Milestones
Dose escalation completed for Q1-week and Q3-week regimens; go-forward dose selected (in ~3,000–3,500 µg/kg maintenance range); transition to expansion cohorts planned for Q2 2026 (late-line mCRPC monotherapy, first-line mCRPC combination, metastatic hormone-sensitive combination); target to advance into Phase III development in 2027.
Improved Financial Discipline and Capital Position
2025 vs 2024: R&D expenses decreased to $456M from $507M, a $51M (10%) reduction; SG&A decreased to $92M from $119M, a $27M (23%) reduction. Net loss improved to $438M in 2025 from $522M in 2024 (an $84M, ~16% reduction). 2025 net change in cash and investments was approximately $314M (includes $64.3M Norgine reimbursement). Starting 2026 cash, cash equivalents and investments ~ $782M (excluding Astellas upfront/equity).
Extended Cash Runway
Including the net effects of the Norgine and Astellas agreements, Vir anticipates cash runway extending into the second quarter of 2028, enabling multiple upcoming value-creating milestones across the pipeline.
Negative Updates
Small, Early and Heavily Pretreated Clinical Dataset
Phase I dataset remains relatively small and immature: 58 patients overall, with key efficacy summaries from subsets (e.g., 11 RECIST-evaluable at ≥3,000 µg/kg). Many high-dose cohorts are still maturing and several patients remain early in treatment, making long-term durability and broader generalizability uncertain.
Treatment-Related Adverse Events and Specific Safety Signals
Although low overall, 12% of patients experienced Grade ≥3 treatment-related adverse events (primarily neutropenia and tumor flare). Two patients discontinued (one due to underlying-disease spinal cord compression deemed unrelated; one due to treatment-related blurred vision). There were two treatment-related blurred vision events with unclear pathophysiology that improved over time.
Isolated Grade 3 CRS Event in Early Cohort
One Grade 3 CRS occurred in an earlier intra-patient dose-escalation cohort (low-dose patient) though the patient recovered rapidly. This underscores that high-grade CRS has occurred, albeit rarely, in the overall program.
Dependence on Regulatory and Third-Party Conditions
Closing of the Astellas collaboration is subject to the Hart-Scott-Rodino waiting period. Additionally, certain payments are due to third parties (e.g., Sanofi), and some announced payment figures (e.g., $335M combined upfront/near-term) are noted as excluding third-party obligations, which can reduce net proceeds to Vir.
Unclear Readthrough to Earlier Lines and Broader Populations
While early signals in late-line mCRPC (including patients with liver metastases) are promising, readthrough to earlier lines of therapy and to broader patient populations remains to be proven. Limited data exist specifically for post-radioligand therapy patients beyond isolated case examples.
Ongoing Questions on Dose Optimization and Regulatory Expectations
Vir plans dose-optimization work in parallel to satisfy FDA Project Optimus guidance and to finalize the pivotal dose; the exact go-forward maintenance dose will be jointly communicated with Astellas. This indicates continued clinical optimization and regulatory engagement required before late-stage trials.
Company Guidance
The company provided clear development and financial guidance: as of the Jan 9, 2026 cutoff the Phase I program had enrolled 58 mCRPC patients (median 4 prior lines, up to 7; 95% prior taxane; 93% bone mets, 45% visceral, 18% liver mets) with weekly and Q3W dosing up to a 4,000 µg/kg maintenance cohort and no DLTs; Vir has selected a go‑forward maintenance dose in the ~3,000–3,500 µg/kg range (no prophylactic steroids/IL‑6 planned), will open expansion cohorts in Q2 2026 (late‑line mCRPC monotherapy, 1L mCRPC combo, mHSPC combo) and aims for Phase III in 2027 while continuing dose optimization per Project Optimus. Efficacy/safety metrics at ≥3,000 µg/kg include 82% PSA50, >50% PSA90, ~33% PSA99, 11 RECIST‑evaluable patients with a 45% ORR (4 confirmed, 1 pending) and 64% disease control rate, durability to 27 weeks (individuals ~12 months), limited CRS (all low grade at ≥3,000; one earlier Grade 3 CRS on intra‑patient escalation), grade ≥3 treatment‑related AEs in 12% and 2 discontinuations. The Astellas collaboration provides $315M upfront ($240M cash + $75M equity at $10.36/sh), a $20M tech‑transfer milestone (mid‑2027), up to $1.37B additional milestones (total $1.7B potential), 50/50 U.S. profit split (Vir option to co‑promote), 40/60 global development cost share (Vir/Astellas), ex‑U.S. tiered double‑digit royalties, and—together with Norgine receipts—leaves Vir with ~$782M cash at start of 2026 and an expected runway into Q2 2028.Vir Biotechnology Financial Statement Overview
Summary
Overall fundamentals are pressured by sustained deep losses and significant cash burn in 2023–2025 (negative operating and free cash flow), with revenue described as lumpy and milestone-driven. The balance sheet is a relative strength with low leverage, but the equity base has declined, and ongoing burn elevates funding-risk if profitability does not improve.Income Statement
Revenue has been highly volatile: strong growth in 2025 (annual revenue up sharply versus 2024), but the company remains deeply unprofitable with very large losses in 2023–2025. Margins deteriorated meaningfully after 2022—shifting from strong profitability in 2021–2022 to heavy net losses in recent years—suggesting the current revenue base is not sufficient to cover the cost structure despite the 2025 rebound.28
Negative
Balance Sheet
Leverage appears conservative, with low debt relative to equity across periods (debt-to-equity staying roughly in the ~0.06–0.12 range). However, the equity base has declined materially since 2022 (consistent with ongoing losses), which reduces balance-sheet flexibility over time if losses persist.70
Positive
Cash Flow
Cash generation is a key weakness: operating cash flow and free cash flow have been strongly negative in 2023–2025, indicating significant cash burn. While 2022 showed very strong positive operating and free cash flow, the subsequent reversal and continued negative trajectory (including declining free cash flow in 2025 versus 2024) raises funding-risk concerns if the burn rate continues.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 68.56M | 74.20M | 86.18M | 1.62B | 1.10B |
| Gross Profit | 56.85M | -404.44M | -486.65M | 994.83M | 581.54M |
| EBITDA | -426.09M | -508.91M | -641.64M | 839.85M | 426.56M |
| Net Income | -437.99M | -521.96M | -615.06M | 515.84M | 528.58M |
Balance Sheet | |||||
| Total Assets | 1.00B | 1.40B | 1.92B | 2.80B | 1.95B |
| Cash, Cash Equivalents and Short-Term Investments | 462.86M | 905.35M | 1.52B | 2.40B | 708.14M |
| Total Debt | 186.91M | 97.89M | 124.54M | 127.97M | 137.49M |
| Total Liabilities | 237.55M | 248.43M | 328.82M | 724.13M | 522.42M |
| Stockholders Equity | 765.28M | 1.15B | 1.59B | 2.08B | 1.43B |
Cash Flow | |||||
| Free Cash Flow | -396.61M | -453.65M | -800.36M | 1.60B | -69.41M |
| Operating Cash Flow | -391.78M | -446.35M | -778.78M | 1.66B | -47.59M |
| Investing Cash Flow | 310.37M | 499.37M | 164.73M | -1.19B | -140.81M |
| Financing Cash Flow | 3.79M | 4.39M | 7.38M | 34.76M | 100.33M |
Vir Biotechnology Technical Analysis
Positive
10.00
Price Trends
6.89
Positive
6.40
Positive
5.74
Positive
Market Momentum
0.52
Negative
75.90
Negative
64.63
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 10 is above the 20-day moving average (MA) of 7.74, above the 50-day MA of 6.89, and above the 200-day MA of 5.74, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 75.90 is Negative, neither overbought nor oversold. The STOCH value of 64.63 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 61 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.32B | -3.16 | -45.73% | ― | -78.55% | 7.74% | |
59 Neutral | $1.50B | -3.42 | -55.50% | ― | 175.62% | 19.63% | |
54 Neutral | $1.38B | -19.86 | -22.38% | ― | 2147.20% | -269.99% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $404.05M | ― | -33.63% | ― | ― | -5.71% | |
47 Neutral | $1.40B | -1.67 | ― | ― | -12.52% | -82.84% | |
46 Neutral | $843.36M | -6.75 | -19.61% | ― | 38.16% | 48.43% |
* Healthcare Sector Average
VIR
Vir Biotechnology
10.00
0.80
8.70%
XNCR
Xencor
11.98
-2.40
-16.69%
IOVA
Iovance Biotherapeutics
3.83
-1.52
-28.41%
AVXL
Anavex Life Sciences
4.40
-3.67
-45.48%
IVA
Inventiva
6.82
3.66
115.82%
SEPN
Septerna, Inc.
29.99
24.29
426.14%
Vir Biotechnology Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Vir Biotechnology, Astellas Forge Major Prostate Cancer Alliance
Positive
Feb 23, 2026
On February 19, 2026, Vir Biotechnology and Astellas US LLC signed a collaboration and license agreement for VIR-5500, a PRO-XTEN dual-masked T-cell engager targeting PSMA that is in Phase 1 development for advanced prostate cancer. The deal, jointly announced on February 23, 2026, also includes a stock purchase agreement under which Astellas will invest about $75 million in Vir at a 50% premium to the recent 30-day volume-weighted average share price.
Under the collaboration, Vir will receive $335 million in upfront and near-term milestone payments, with potential to earn up to $1.37 billion in additional milestones plus tiered double-digit ex-U.S. royalties, while global development costs will be shared 60/40 in favor of Astellas. The structure gives Vir equal profit-and-loss sharing and an option to co-promote in the U.S., exclusive commercialization by Astellas ex-U.S., and the flexibility to opt out of cost sharing for higher milestone and royalty economics, positioning VIR-5500 as a cornerstone of Vir’s emerging oncology franchise and reinforcing Astellas’ strategy to deepen its prostate cancer and immuno-oncology pipeline.
Closing of the transaction is contingent on expiration or termination of the applicable Hart-Scott-Rodino waiting period and other customary conditions. Vir will share a portion of certain collaboration proceeds with Sanofi under an existing licensing agreement linked to the PRO-XTEN platform, while Astellas’ equity stake comes with one-year standstill, voting and lockup provisions that underscore the strategic nature of the partnership for both companies and their stakeholders.
The most recent analyst rating on (VIR) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Vir Biotechnology stock, see the VIR Stock Forecast page.
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Vir Biotechnology advances hepatitis delta program and cash runway
Positive
Jan 12, 2026
On January 12, 2026, Vir Biotechnology reported updated positive Phase 2 SOLSTICE data in chronic hepatitis delta showing that combination therapy with tobevibart and elebsiran achieved undetectable HDV RNA in 88% of evaluable participants at Week 96, with a favorable safety profile and stronger viral suppression than tobevibart alone, reinforcing the potential of this regimen as a future standard of care. The company outlined progress in its registrational ECLIPSE Phase 3 program in chronic hepatitis delta, highlighted upcoming presentations of Phase 1 data for PSMA-targeted T-cell engager VIR-5500 in metastatic castration-resistant prostate cancer at a major oncology meeting, and noted continued advancement of its broader PRO-XTEN oncology portfolio, while disclosing an unaudited year-end 2025 cash and investment balance of about $781 million and an extended cash runway into the fourth quarter of 2027, supported by a regional licensing deal with Norgine and disciplined spending.
The most recent analyst rating on (VIR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Vir Biotechnology stock, see the VIR Stock Forecast page.
Business Operations and StrategyProduct-Related Announcements
Vir Biotechnology Secures Licensing Deal with Norgine
Positive
Dec 16, 2025
On December 16, 2025, Vir Biotechnology entered into a license agreement with Norgine Pharma UK Limited, granting Norgine exclusive commercial rights to a combination treatment for chronic hepatitis delta (CHD) in Europe, Australia, and New Zealand. Vir will receive an initial EUR 55 million reimbursement and up to EUR 495 million in milestones, with shared clinical development costs for ongoing trials. The combination treatment of tobevibart and elebsiran showed promising results in a Phase 2 trial, achieving significant virologic suppression and being well-tolerated, which could enhance Vir’s market positioning and impact stakeholders positively.
The most recent analyst rating on (VIR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Vir Biotechnology stock, see the VIR Stock Forecast page.
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.