Vir Biotechnology (VIR) AI Stock Analysis

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Vir Biotechnology

(NASDAQ:VIR)

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Neutral 49 (OpenAI - 4o)

Rating:49Neutral

Price Target:

$5.00

▼(-8.93% Downside)

Vir Biotechnology's overall stock score is primarily impacted by its financial performance and valuation challenges. The company's significant operating losses and negative revenue growth weigh heavily on its financial health. While technical indicators suggest some short-term bullish momentum, the long-term outlook remains uncertain. The absence of a positive P/E ratio and dividend yield further detract from its investment appeal.

Positive Factors

Strong Financial Position

A robust cash position ensures financial stability and supports ongoing R&D activities, enabling the company to pursue strategic initiatives without immediate funding pressures.

Advancements in T Cell Engager Programs

Progress in T cell engager programs highlights Vir's commitment to innovation and potential for future therapeutic breakthroughs, enhancing its competitive edge in immunology.

ECLIPSE Program Market Potential

The ECLIPSE program's large target market offers significant commercial opportunities, positioning Vir for substantial revenue growth if successful in addressing unmet medical needs.

Negative Factors

Negative Revenue Growth

Declining revenue growth indicates potential challenges in product adoption and market penetration, which could impact long-term financial sustainability and strategic initiatives.

Significant Operating Losses

Ongoing operating losses highlight profitability challenges, which may strain resources and necessitate strategic adjustments to achieve financial stability and growth.

Challenges in HDV Epidemiology

Difficulty in accurately estimating HDV patient numbers could hinder market strategy and revenue projections, impacting the effectiveness of commercial efforts for the ECLIPSE program.

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

Market Cap

$762.65M

Dividend YieldN/A

Average Volume (3M)1.40M

Price to Earnings (P/E)―

Beta (1Y)0.73

Revenue Growth-75.91%

EPS Growth-12.11%

CountryUS

Employees408

SectorHealthcare

Sector Strength45

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.80

Shares Outstanding138,916,430

10 Day Avg. Volume1,102,867

30 Day Avg. Volume1,395,287

Financial Highlights & Ratios

PEG Ratio0.12

Price to Book (P/B)0.87

Price to Sales (P/S)13.48

P/FCF Ratio-2.20

Enterprise Value/Market Cap0.14

Enterprise Value/Revenue6.35

Enterprise Value/Gross Profit6.64

Enterprise Value/Ebitda-0.18

Forecast

1Y Price Target

$16.29

Price Target Upside196.72% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering8

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. This includes income from partnerships and collaborations with larger pharmaceutical companies, which often provide upfront payments, milestone payments, and royalties on sales. The company has entered into significant agreements aimed at accelerating the development and distribution of its therapies, particularly in response to public health needs, such as its collaboration with GlaxoSmithKline for the development of COVID-19 treatments. Additionally, government contracts and grants related to pandemic response initiatives can contribute to revenue, alongside potential market sales of approved therapies once they reach commercialization.

Vir Biotechnology Key Performance Indicators (KPIs)

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:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call highlights Vir Biotechnology's significant progress in their ECLIPSE program and T cell engager portfolio, alongside a strong financial position and reduced operating expenses. However, the company continues to face challenges with net losses and estimating the HDV patient population.

Q2-2025 Updates

Positive Updates

Progress in the ECLIPSE Program

Vir Biotechnology has successfully enrolled the first patients in ECLIPSE 2 and ECLIPSE 3, with all three registrational studies actively recruiting patients globally. The primary completion for ECLIPSE 1 is expected by December 2026.

Advancements in T Cell Engager Programs

Vir has initiated a Phase I study for VIR-5525, their EGFR-targeted T cell engager, marking their third clinical stage T cell engager program. They also received IND clearance to evaluate VIR-5500 in earlier lines of prostate cancer treatment.

Strong Financial Position

Vir Biotechnology ended the second quarter with approximately $892 million in cash, cash equivalents, and investments, providing a cash runway extending into mid-2027.

Decreased Operating Expenses

Operating expenses in Q2 2025 were $119.6 million, a $42.1 million decrease from the same period in 2024, due to cost savings from restructuring initiatives and reduced stock-based compensation.

ECLIPSE Program Market Potential

The ECLIPSE program targets approximately 7 million active viremic HDV RNA-positive patients globally, with a significant concentration in major urban centers in the U.S., offering a compelling commercial opportunity.

Negative Updates

Net Loss for Q2 2025

Vir Biotechnology reported a net loss of $111 million for the second quarter of 2025, compared to a net loss of $138.4 million for the same period in 2024.

Continued Challenges in HDV Epidemiology

Estimating the epidemiology of HDV remains challenging due to the lack of approved therapy and automatic reflex testing in HDV-positive patients, potentially underestimating the number of viremic patients in the U.S.

Company Guidance

During the call, Vir Biotechnology provided guidance on several key metrics. They reported significant advancements in their hepatitis delta (HDV) and oncology programs. The ECLIPSE registrational program for HDV is actively recruiting patients globally, with ECLIPSE 1 expected to complete primary endpoint data by December 2026. The company highlighted the commercial potential of their HDV treatment, given the estimated 7 million active viremic HDV RNA-positive patients worldwide, including 61,000 in the U.S. They anticipate a targeted commercial approach in major urban centers. In oncology, Vir has initiated a Phase I study for VIR-5525, their EGFR-targeted T cell engager, and continues to progress with VIR-5818 and VIR-5500 in Phase I studies. Financially, Vir ended the second quarter with $892 million in cash, providing a runway into mid-2027. R&D expenses were $97.5 million, a decrease from the previous year, attributed to restructuring initiatives, while SG&A expenses were $22.3 million. Net loss for the quarter was $111 million, down from $138.4 million in the same period of 2024.

Vir Biotechnology Financial Statement Overview

Summary

Vir Biotechnology faces significant financial challenges, particularly in terms of profitability and cash flow management. Despite a strong gross profit margin and low leverage, negative revenue growth and substantial operating losses pose risks. The balance sheet remains relatively stable, but the company needs to address its profitability issues to improve its financial health.

Income Statement

Neutral

Vir Biotechnology's income statement shows significant challenges. The company has experienced negative revenue growth in recent periods, with a TTM revenue decline of 10.05%. Profitability metrics are concerning, with a negative net profit margin of -33.02% and EBIT margin of -35.87% in the TTM. Despite a strong gross profit margin of 95.53%, the company struggles with high operating losses.

Balance Sheet

Neutral

The balance sheet reflects moderate stability with a low debt-to-equity ratio of 0.10 in the TTM, indicating low leverage. However, the return on equity is negative at -50.22%, highlighting profitability issues. The equity ratio is not explicitly calculated, but the company maintains a substantial equity base relative to its assets.

Cash Flow

Neutral

Cash flow analysis reveals a challenging situation with negative operating cash flow and free cash flow in the TTM. However, the free cash flow to net income ratio is slightly positive at 1.02, suggesting some efficiency in cash management despite losses. Free cash flow growth is positive at 10.48%, indicating some improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.67M	74.20M	86.18M	1.58B	1.09B	67.25M
Gross Profit	15.92M	73.36M	83.42M	1.43B	1.02B	-234.33M
EBITDA	-584.86M	-537.61M	-664.85M	833.07M	420.75M	-289.80M
Net Income	-550.23M	-521.96M	-615.06M	515.84M	528.58M	-298.67M
Balance Sheet
Total Assets	1.19B	1.40B	1.92B	2.80B	1.95B	918.76M
Cash, Cash Equivalents and Short-Term Investments	686.97M	990.38M	1.52B	2.40B	708.14M	736.86M
Total Debt	93.41M	97.89M	124.54M	127.97M	133.56M	66.56M
Total Liabilities	245.06M	248.43M	328.82M	724.13M	522.42M	201.91M
Stockholders Equity	947.47M	1.15B	1.59B	2.08B	1.43B	716.85M
Cash Flow
Free Cash Flow	-466.38M	-453.65M	-800.36M	1.60B	-69.41M	-197.49M
Operating Cash Flow	-457.45M	-446.35M	-778.78M	1.66B	-47.59M	-190.94M
Investing Cash Flow	442.61M	499.37M	164.63M	-1.19B	-140.81M	-9.86M
Financing Cash Flow	3.94M	4.39M	7.48M	34.76M	100.33M	529.47M

Vir Biotechnology Technical Analysis

Technical Analysis Sentiment

Positive

Last Price5.49

Price Trends

50DMA

5.00

Positive

100DMA

5.08

Positive

200DMA

6.51

Negative

Market Momentum

MACD

0.10

Negative

RSI

60.27

Neutral

STOCH

75.38

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 5.49 is above the 20-day moving average (MA) of 5.14, above the 50-day MA of 5.00, and below the 200-day MA of 6.51, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 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

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTLA	58 Neutral	1.75B	-3.48	-59.52%	―	14.99%	14.42%
RCUS	54 Neutral	1.37B	-4.05	-58.35%	―	6.07%	-2.28%
VIR	49 Neutral	$762.65M	―	-46.22%	―	-75.91%	-12.11%
NRIX	47 Neutral	682.69M	-3.42	-46.32%	―	41.86%	10.48%
SYRE	43 Neutral	980.91M	-5.33	―	―	―	-429.68%
PHVS	42 Neutral	1.55B	-7.17	―	―	―	-36.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

VIR

Vir Biotechnology

5.49

-2.00

-26.70%

XNCR

Xencor

11.57

-8.54

-42.47%

IOVA

Iovance Biotherapeutics

2.11

-7.28

-77.53%

AVXL

Anavex Life Sciences

8.66

2.98

52.46%

IVA

Inventiva

6.05

4.19

225.27%

SEPN

Septerna, Inc.

17.45

-3.30

-15.90%

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: Sep 19, 2025