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Vir Biotechnology (VIR)
NASDAQ:VIR
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Vir Biotechnology
(NASDAQ:VIR)
Rating:50Neutral
Price Target:
$5.50
▲(1.29%Upside)
Positive Factors
Financial Position
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.
HDV Program Potential
Chronic hepatitis delta virus infection (CHD) is now Vir’s clear lead value driver in hepatitis, with the pivotal Phase 3 trial ECLIPSE 1 enrolling and ECLIPSE 2 set to initiate imminently.
Oncology Program Prospects
Vir's T-cell engager (TCE) in oncology programs are progressing well, with VIR-5818 and VIR-5500 showing early efficacy and safety signals in solid tumors.
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.
HBV Program Challenges
The probability of success for Vir's HBV program was lowered due to recent mixed data, reflecting uncertainties in securing a global partner.
Partnership Difficulties
Friday's data and lack of clear competitive profile differentiation could make potential partnership discussions more challenging.
Vir Biotechnology (VIR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$753.40M
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-73.79%
EPS Growth-5.24%
CountryUS
Employees408
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.88
Shares Outstanding138,238,000
10 Day Avg. Volume1,345,566
30 Day Avg. Volume1,418,131
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)0.60
Price to Sales (P/S)0.00
P/FCF Ratio-1.55
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue2.06
Enterprise Value/Gross Profit9.09
Enterprise Value/Ebitda-0.26
Forecast
1Y Price Target
$18.14Price Target Upside234.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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
Revenue by Segment
Highlights revenue from different business units or product lines, indicating which areas are driving growth and where the company might focus its strategic efforts to maximize profitability.
Highlights revenue from different business units or product lines, indicating which areas are driving growth and where the company might focus its strategic efforts to maximize profitability.
Data provided by:
Main Street Data
Main Street DataVir Biotechnology Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -3.21%|
Next Earnings Date:Jul 31, 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 challenges with declining revenues and profitability, as noted in its income statement. The balance sheet shows financial stability with low leverage, but cash flow difficulties persist, impacting operational flexibility. The company needs to address revenue generation and cash flow management to improve its financial health.Income Statement
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.40
Negative
Balance Sheet
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.65
Positive
Cash Flow
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.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 |
| -508.55M | -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 |
| 97.89M | 124.54M | 127.97M | 133.56M | 66.56M | Net Debt |
| -125.06M | -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
Negative
5.43
Price Trends
5.45
Negative
7.17
Negative
7.60
Negative
Market Momentum
-0.06
Negative
54.84
Neutral
88.41
Negative
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 5.43 is above the 20-day moving average (MA) of 4.89, below the 50-day MA of 5.45, and below the 200-day MA of 7.60, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 88.41 is Negative, 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $1.06B | ― | -63.17% | ― | -40.51% | -35.07% | |
54 Neutral | $5.31B | 3.26 | -45.10% | 2.79% | 16.76% | 0.02% | |
52 Neutral | $837.99M | ― | -57.92% | ― | -13.37% | 2.57% | |
52 Neutral | $974.29M | ― | -64.16% | ― | -30.25% | -5.92% | |
50 Neutral | $753.40M | ― | -44.59% | ― | -73.79% | -5.24% | |
43 Neutral | $1.02B | 2.31 | -50.47% | ― | -100.00% | 94.68% | |
42 Neutral | $914.39M | ― | -51.85% | ― | ― | 0.71% |
* Healthcare Sector Average
Performance Comparison
VIR
Vir Biotechnology
5.43
-5.19
-48.87%
SYRE
Spyre Therapeutics
17.16
-20.82
-54.82%
NTLA
Intellia Therapeutics
8.28
-15.47
-65.14%
RCUS
Arcus Biosciences
9.85
-5.80
-37.06%
NRIX
Nurix Therapeutics
12.54
-3.61
-22.35%
PHVS
Pharvaris
18.03
2.15
13.54%
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.