Vir Biotechnology (NASDAQ:VIR) Shares Gap Up – What’s Next?

Vir Biotechnology, Inc. (NASDAQ:VIR)’s share price gapped up prior to trading on Wednesday. The stock had previously closed at $10.61, but opened at $10.95. Vir Biotechnology shares last traded at $10.5730, with a volume of 602,823 shares.

Vir Biotechnology News Roundup

Here are the key news stories impacting Vir Biotechnology this week:

• Positive Sentiment: Gilead and Vir signed a multi-program collaboration and license agreement potentially worth approximately $1.87 billion to $1.9 billion. The partnership will use Vir’s PRO-XTEN® technology to discover and develop three dual-masked T-cell engagers for solid tumors, providing significant commercial validation for Vir’s platform and potential access to substantial milestone payments. Gilead and Vir forge $1.9bn pact to develop next-gen T-cell engagers
• Positive Sentiment: Gilead is also purchasing approximately 1.76 million Vir shares for $25 million, giving Vir additional funding while establishing a strategic equity relationship with a large pharmaceutical partner. Vir Biotechnology Sells 1.76 Million Shares to Gilead in $25M Stock Deal
• Positive Sentiment: The agreement strengthens Vir’s credibility in oncology and could improve the company’s ability to pursue additional licensing transactions. Vir’s CEO said the deal may create opportunities for further partnerships, while Barclays reiterated a Buy rating. Vir CEO sees opportunity to do more deals after striking Gilead pact
• Neutral Sentiment: The headline deal value is contingent on development, regulatory and commercial milestones rather than guaranteed near-term revenue. The programs also remain subject to clinical and regulatory risk. Vir partners with Gilead in deal for T-cell engagers
• Negative Sentiment: The equity issuance modestly dilutes existing shareholders, and Vir remains loss-making, meaning investors may continue to focus on execution and the timing of future milestone payments. Gilead Enters Collaboration and License Agreement with Vir Biotechnology

Analyst Ratings Changes

A number of research analysts have recently issued reports on VIR shares. HC Wainwright upped their price target on Vir Biotechnology from $20.00 to $22.00 and gave the company a “buy” rating in a report on Wednesday, October 7th. Raymond James Financial reaffirmed a “strong-buy” rating on shares of Vir Biotechnology in a research report on Monday, September 28th. Morgan Stanley set a $25.00 price objective on Vir Biotechnology in a report on Thursday, August 6th. Wall Street Zen raised Vir Biotechnology from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Vir Biotechnology in a research report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Vir Biotechnology presently has a consensus rating of “Moderate Buy” and an average target price of $21.86.

Vir Biotechnology Price Performance

The company has a market cap of $1.77 billion, a P/E ratio of -5.63 and a beta of 1.59. The stock’s 50-day moving average is $10.60 and its two-hundred day moving average is $9.85.

Vir Biotechnology (NASDAQ:VIR) last issued its earnings results on Wednesday, August 5th. The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.14. The company had revenue of $238.95 million during the quarter, compared to analysts’ expectations of $135.88 million. During the same quarter in the prior year, the business posted ($0.80) EPS. The company’s revenue for the quarter was up 19582.5% compared to the same quarter last year. On average, analysts predict that Vir Biotechnology, Inc. will post -1.84 EPS for the current year.

Hedge Funds Weigh In On Vir Biotechnology

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Vir Biotechnology in the second quarter worth $210,712,000. ARCH Venture Management LLC bought a new position in Vir Biotechnology in the second quarter valued at about $129,353,521. ADAR1 Capital Management LLC purchased a new position in Vir Biotechnology in the first quarter worth about $24,593,000. Dimensional Fund Advisors LP boosted its position in Vir Biotechnology by 1.7% in the first quarter. Dimensional Fund Advisors LP now owns 2,579,678 shares of the company’s stock worth $23,107,000 after purchasing an additional 43,401 shares during the last quarter. Finally, Pictet Asset Management Holding SA boosted its position in Vir Biotechnology by 10,878.9% in the first quarter. Pictet Asset Management Holding SA now owns 1,480,828 shares of the company’s stock worth $13,268,000 after purchasing an additional 1,467,340 shares during the last quarter. 65.32% of the stock is currently owned by hedge funds and other institutional investors.

About Vir Biotechnology

Vir Biotechnology, Inc is a clinical-stage immunology company focused on developing treatments and preventive therapies for serious infectious diseases. The company uses immunologic insights, antibody technology, cellular approaches and other scientific platforms to address diseases in which the immune system plays a central role.

Vir’s research and development programs have included therapies for chronic hepatitis B, influenza, human immunodeficiency virus (HIV) and COVID-19. Its pipeline has included investigational antibody and immunomodulatory candidates such as tobevibart and elebsiran for hepatitis B, as well as programs designed to prevent or treat other viral infections.