BUZZ-Vir Biotechnology shares rise after reaching a licensing agreement with Gilead worth up to $1.9 billions

October 14 - ** Vir Biotechnology (VIR.O) shares rose 11.7% in pre-market trading to $11.85

** The company signed a collaboration and licensing agreement with Gilead (GILD.O) for three candidate drugs targeting specific solid tumor-associated antigens

** VIR is eligible to receive upfront and near-term preclinical milestone payments totaling up to $135 million, and could receive up to $1.74 billion in additional milestone payments, as well as tiered royalties based on net sales

** VIR is responsible for drug discovery, design, and optimization, while Gilead will receive exclusive development and commercialization rights for the three T cell engagers developed on the VIR platform

** T cell engagers are potent anti-tumor drugs designed to direct the immune system to destroy cancer cells

** In addition, the two parties also signed a stock purchase agreement under which GILD will purchase about 1.77 million shares of VIR at $14.16 per share, for a total investment of about $25 million

** As of the previous session's close, VIR shares had risen about 76% year to date

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