New York, Feb 24, 2026, 05:28 EST — Premarket
- Vir shares surged about 64% in premarket trading after the company struck a prostate cancer drug deal with Astellas
- The pact brings $335 million upfront and near-term payments, with up to $1.37 billion more tied to milestones
- Vir also posted updated Phase 1 VIR-5500 results and said it will present the data at ASCO GU on Feb. 26
Vir Biotechnology shares jumped about 64% in premarket trading on Tuesday after the drugmaker unveiled a partnership with Japan’s Astellas Pharma and fresh early-stage data for its prostate cancer program, VIR-5500. (MarketBeat)
The move matters because Vir is getting a large cash infusion and a heavyweight partner at a moment when investors have been punishing small biotechs that need to fund long clinical programs. Astellas will also shoulder most of the development bill for VIR-5500, while Vir keeps a path to U.S. profits. (Vir)
Vir said it expects its cash, cash equivalents and investments to fund operations into the second quarter of 2028, factoring in the net effects of the Astellas collaboration and Astellas’ planned equity investment. (Vir)
Under the agreement, Vir will receive $335 million in upfront and near-term payments, including $240 million in cash, a $75 million equity investment at a 50% premium and a $20 million milestone, the companies said. Vir is also eligible for up to $1.37 billion in development, regulatory and sales milestones, plus tiered double-digit royalties outside the United States. (Reuters)
Astellas will lead commercialization in the United States, with Vir retaining an option to co-promote, while Astellas gets exclusive rights outside the U.S. Global development costs will be shared, with Astellas responsible for 60% and Vir 40%, according to the companies’ statement. (Vir)
Vir’s rally was also fueled by updated Phase 1 results for VIR-5500, a “T-cell engager” designed to redirect immune T-cells to attack cancer cells by binding both a tumor target and CD3 on T-cells. Vir said the trial data showed no dose-limiting toxicities so far, and limited cytokine release syndrome — an immune overreaction that can occur with these drugs — was mostly low grade. (Vir)
In the highest-dose cohorts reported, Vir said 82% of PSA-evaluable patients saw at least a 50% drop in PSA, a blood marker used to track prostate cancer activity, and 53% saw a 90% decline. Among RECIST-evaluable patients, the company reported objective responses in 45% (5 of 11). (Vir)
“It is remarkable to see these early signs of profound anti-tumor activity,” said Dr. Johann de Bono, the study’s principal investigator at the Institute of Cancer Research, in a company release. (Vir)
Vir separately reported fourth-quarter 2025 revenue of $64.1 million, up from $12.4 million a year earlier, driven mainly by recognition of license revenue tied to an initial cost reimbursement payment from a hepatitis delta deal with Norgine. Cash, cash equivalents and investments stood at about $781.6 million at year-end 2025, Vir said. (Vir)
There are still plenty of ways this breaks wrong. The VIR-5500 data are early and come from small cohorts, while broader testing could surface safety issues or weaker efficacy; the Astellas transaction also depends on customary closing conditions, including U.S. antitrust clearance under the Hart-Scott-Rodino Act. (Vir)
Next up: Vir said the VIR-5500 data will be presented in an oral session at the ASCO Genitourinary Cancers Symposium in San Francisco on Feb. 26, an event that could set the tone for how durable the stock’s move is once regular trading opens. (Vir)
