New York, Feb 24, 2026, 05:28 EST — Premarket
- Vir shares jumped roughly 64% ahead of the open, following news of the company’s prostate cancer drug agreement with Astellas.
- The deal hands over $335 million in upfront and near-term payouts, while another $1.37 billion could roll in if certain milestones are hit.
- Vir released updated Phase 1 results for VIR-5500 and noted plans to present the data at ASCO GU on Feb. 26.
Shares of Vir Biotechnology soared roughly 64% in Tuesday’s premarket session, following news of its collaboration with Japan’s Astellas Pharma and new early-stage results from its prostate cancer program, VIR-5500.
Vir lands a hefty cash boost and a deep-pocketed ally just as small biotechs needing to bankroll long trials are getting hammered by investors. Astellas will pick up most of the tab for developing VIR-5500, with Vir still holding on to its shot at U.S. earnings.
Vir is projecting that its cash, cash equivalents, and investments will cover operations through the second quarter of 2028, taking into account both the net impact of the Astellas collaboration and Astellas’ planned equity stake.
Vir stands to collect $335 million right away and in the near term, with $240 million paid out in cash, another $75 million coming through a stock purchase at a 50% premium, and a $20 million milestone thrown in, according to the companies. Beyond that, Vir could bring in as much as $1.37 billion if development, regulatory, and sales targets are hit, and will receive tiered double-digit royalties on sales outside the U.S.
Astellas takes the lead on U.S. commercialization, while Vir keeps a co-promotion option. Outside the U.S., Astellas secures exclusive rights. The firms will split global development costs—Astellas picks up 60%, Vir handles the remaining 40%, both companies said in a statement.
Vir shares surged after the company released a fresh look at its Phase 1 study of VIR-5500, a so-called “T-cell engager” meant to marshal T-cells against tumors by targeting both a cancer antigen and CD3. According to Vir, the ongoing trial hasn’t turned up any dose-limiting toxicities. Cytokine release syndrome—an immune side effect often seen with these agents—showed up mostly as low-grade cases. Vir
Vir reported that in the highest-dose groups, 82% of PSA-evaluable patients achieved at least a 50% reduction in PSA levels—a key marker for tracking prostate cancer. For a steeper drop, 53% saw their PSA fall by 90%. Turning to RECIST-evaluable patients, the objective response rate landed at 45% (5 out of 11), according to the company.
Dr. Johann de Bono, principal investigator at the Institute of Cancer Research, called the early anti-tumor signals “remarkable” in the company’s statement. Vir
Vir’s fourth-quarter 2025 revenue jumped to $64.1 million, up sharply from $12.4 million a year ago. The increase mainly reflects license revenue recognized from an initial cost reimbursement payment related to its hepatitis delta agreement with Norgine. Cash, cash equivalents and investments totaled roughly $781.6 million at the end of 2025, according to the company.
Things could still go sideways. VIR-5500’s results so far are drawn from limited, early-stage cohorts—bigger trials might reveal safety flags or less punch from the treatment. The Astellas deal? That hinges on usual hurdles, including U.S. antitrust review under the Hart-Scott-Rodino Act.
Looking ahead, Vir plans to showcase VIR-5500 data at the ASCO Genitourinary Cancers Symposium in San Francisco on Feb. 26. The company said the results will be shared in an oral session. How the stock trades after that could hinge on the market’s reaction to these details.
