- Vir secured $335 million in upfront and near-term payments from its global collaboration with Astellas to advance VIR-5500.
- The company’s Phase 1 data for VIR-5500 showed promising safety and efficacy signals in heavily pre-treated metastatic prostate cancer patients.
- Q4 revenue of $64.1 million beat consensus estimates of $19.9 million, driven by licensing revenue.
Shares of Vir Biotechnology, Inc. (VIR) surged nearly 60% in extended trading on Monday after the company combined a strong fourth-quarter (Q4) earnings beat with a $335 million upfront cancer partnership and strong clinical data.
VIR stock fell 1.7% to $7.43 in the regular session on Monday.
Vir Secures $335M Upfront In Astellas Deal
The biggest catalyst was Vir’s partnership with Astellas to advance VIR-5500, a prostate-specific membrane antigen (PSMA) targeting PRO-XTEN dual-masked CD3 T-cell engagers that help the immune system attack prostate cancer cells.
Under the deal, Vir will receive $335 million in upfront and near-term payments, including $240 million in cash, a $75 million equity investment priced at a 50% premium, and a $20 million near-term milestone. Additionally, Vir is eligible to earn up to $1.37 billion in additional development, regulatory, and sales milestones, as well as tiered, double-digit royalties on ex-U.S. sales.
Both companies will share development costs, with Astellas covering 60% and Vir 40%. In the U.S., profits and losses will be split evenly, and Vir retains the option to co-promote the drug. Outside the U.S., Astellas will lead commercialization. Vir will continue running the ongoing Phase 1 study before handing development responsibilities over to Astellas.
Phase 1 Data Shows Promising Early Prostate Cancer Results
Vir also reported updated Phase 1 dose-escalation data for VIR-5500 in patients with heavily pre-treated metastatic castration-resistant prostate cancer.
Among 58 patients, VIR-5500 monotherapy was generally well tolerated, with no dose-limiting toxicities reported to date. Grade 3 or higher treatment-related adverse events occurred in 12% of patients and were manageable. Cytokine release syndrome was seen in about half of patients, though cases were largely limited to low-grade fever.
At higher dose levels of at least 3,000 micrograms per kilogram given every three weeks, the drug’s anti-cancer activity became more evident. PSA50 declines (prostate-specific antigen levels falling by at least 50%) were seen in 82% of evaluable patients, while PSA90 declines of 90% or more occurred in 53%.
Among patients assessed using RECIST criteria, a way to measure tumor response on scans, 45% experienced objective responses, with measurable tumor shrinkage across multiple lesions, including cancer that had spread to internal organs.
Vir said the data support moving into dose-expansion cohorts in 2026, with plans to begin registrational trials in 2027.
Q4 Results Add Fuel To After-Hours Rally
The company’s fourth-quarter (Q4) results further pushed the stock’s rise. Vir reported revenue of $64.1 million for the quarter, far above Wall Street estimates of about $19.9 million. The jump was largely driven by recognition of a $64.3 million initial cost reimbursement payment tied to its hepatitis delta licensing deal with Norgine.
Vir posted a net loss of $42.9 million, or $0.31 per share, in Q4, compared with a loss of $104.6 million, or $0.76 per share, a year earlier. The result also beat analyst expectations, with a $0.5-per-share loss.
For the full year, Vir reported revenue of $68.6 million and a net loss of $438 million, up from the prior year’s $522 million loss.
Vir ended 2025 with $781.6 million in cash, cash equivalents, and investments. Factoring in the Astellas collaboration and equity investment, the company said its current resources are expected to fund operations into the second quarter of 2028.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for VIR was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said they “will see $15 after open tomorrow 100% runner.”
Another user said, “Fantastic news, fantastic conference call,” adding that it will be a fun watch tomorrow. “We knew VIR is creating long-term value for shareholders & that´s why we were holding strong!”
VIR stock has risen 23% year to date.
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