Vir Biotechnology gains after up to $1.9 billion licensing deal with Gilead
VIR•Vir Biotechnology shares rose 11.7% premarket after it signed a collaboration and license agreement with Gilead covering three cancer drug candidates, with up to $1.9 billion in potential payments plus tiered royalties. Gilead will also buy about 1.77 million Vir shares for roughly $25 million.
1. Licensing agreement
Vir Biotechnology said it will receive up to $135 million in upfront and near-term preclinical milestone payments, with the potential for up to $1.74 billion in further milestones and tiered royalties on net sales. Vir will handle discovery, design and optimization of three T-cell engagers targeting selected solid tumor-associated antigens, while Gilead will have an exclusive license to develop and commercialize them.
2. Share purchase
Under a separate stock purchase agreement, Gilead will buy about 1.77 million Vir shares at $14.16 each for a total investment of roughly $25 million. Vir shares rose 11.7% to $11.85 in premarket trading.
