Vir Biotechnology inked a deal Tuesday worth up to $1 billion for its experimental flu treatment, leading Vir stock to surge.
A division of the Department of Health and Human Services will pay Vir $55 million initially to develop a monoclonal antibody that could prevent seasonal or pandemic influenza. The treatment is already in midstage testing.
The move builds on Vir's efforts in targeting Covid-19 with monoclonal antibodies. Vir partners with GSK — formerly GlaxoSmithKline — on sotrovimab. Sotrovimab was an authorized treatment in the U.S. for mild-to-moderate Covid in people age 12 and up.
"Covid-19 reinforced the ever-present global threat of infectious diseases, and the critical need for readily available solutions in advance of the next pandemic," Rajesh Gupta said in a written statement. Gupta is Vir's vice president of global health portfolio and public-private partnerships.
On today's stock market, Vir stock jumped 7.7% to 21.49.
Vir Stock: Up To 12 Options
Under the terms of the deal, the HHS' Biomedical Advanced Research and Development Authority will pay Vir an initial $55 million to continue developing VIR-2482. The development plan includes a Phase 2 study testing the drug's ability to prevent influenza. Vir expects the results in mid-2023.
The rest of the potential $1 billion depends on BARDA exercising 12 options. These would allow Vir to develop other antibodies to prevent flu or other pandemic-potential viruses. The deal also notes BARDA could support the development of up to 10 emerging disease antibody-based treatments.
"We are proud to have contributed to the fight against Covid-19 with the delivery of sotrovimab, and to have helped address Ebola with the co-discovery of (ansuvimab)," Gupta said. Ansuvimab was developed with Ridgeback Biotherapeutics to treat Ebola.
The flu treatment news Tuesday sent Vir stock higher for the sixth straight trading day.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
