Vir and Gilead reach an agreement worth up to 1.9 billions USD to jointly develop solid tumor treatment solutions

Reuters, October 14 - Vir Biotechnology (VIR.O) announced on Wednesday that it has signed a partnership agreement with Gilead Sciences (GILD.O) valued at up to $1.88 billion, aimed at discovering and developing new cancer treatments targeting solid tumors.

After the news was released, Vir’s share price rose more than 10% in pre-market trading.

• The company stated that under the agreement, Vir will receive a $90 million upfront payment, and will be eligible to earn up to $45 million in near-term preclinical milestone payments, as well as up to $1.74 billion in future research, regulatory, and commercialization payments.

• Additionally, the company will be eligible for tiered royalties based on net sales, ranging from high single digits to low double digits.

• This partnership aims to develop three new masked T cell engager drug candidates to direct the immune system to destroy cancer cells in solid tumors.

• Vir will utilize its PRO-XTEN masking technology and proprietary dAIsY artificial intelligence platform to design these drug candidates.

• The company will be responsible for early research and design of the experimental drugs, while Gilead will have exclusive rights to advance these drugs through clinical trials, manufacturing, and commercialization.

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