We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vir Biotechnology (VIR) Gains 21.7% in 3 Months: Here's Why
Read MoreHide Full Article
Shares of Vir Biotechnology (VIR - Free Report) have gained 21.7% in the past three months compared with the industry’s growth of 7.5%.
Last month, Vir announced a restructuring plan to reduce operating expenses and focus on investing in programs with the highest potential for value creation. The update was cheerful for investors, as pipeline setbacks dampened growth prospects.
Image Source: Zacks Investment Research
The company will now primarily focus on chronic hepatitis delta and chronic hepatitis B clinical programs, and antibody platforms to target infectious diseases, autoimmune diseases and oncology.
Vir announced a 12% reduction in its workforce. Consequently, the headcount will be reduced by 75. The reductions include the discontinuation of the company’s innate immunity small molecule group, which was initiated in the third quarter of 2023. The reductions will be substantially complete by the first quarter of 2024.
R&D facilities in St. Louis, MO, and Portland, OR, will be closed in 2024. However, research activities will continue at the company’s sites in San Francisco, California and Bellinzona, Switzerland.
The firm expects to incur charges between $30 million and $40 million through the third quarter of 2024, primarily related to facility closures and, to a lesser extent, employee severance costs. Of these, approximately $3-$4 million will be cash expenditure.
As a result of the above-mentioned actions, VIR will reduce its cost structure by at least $40 million annually.
Vir Biotechnology ended the third quarter with $1.7 billion in cash, cash equivalents and investments.
Concurrent with the third quarter, the company has announced that it is expanding its strategic focus to autoimmune diseases and immuno-oncology. VIR expects to report new clinical data from its ongoing phase II study evaluating its monoclonal antibody tobevibart (VIR-3434) and its siRNA elebsiran (VIR-2218) for the treatment of chronic hepatitis delta (SOLSTICE trial) in the second quarter of 2024.
We remind investors that share price plunged in July 2023 after VIR announced that the mid-stage PENINSULA (study evaluating VIR-2482 for the prevention of symptomatic influenza A did not meet primary or secondary efficacy endpoints. The study was the first phase II outpatient trial to evaluate the role of a monoclonal antibody in the prevention of influenza A illness.
Meanwhile, the phase II PREVAIL platform trial and its THRIVE/STRIVE sub-protocols are ongoing. The platform is evaluating combinations of VIR-3434, VIR-2218 and/or peginterferon alpha in two chronic hepatitis B patient populations with the potential to evaluate other populations in the future. Initial data from this platform trial are expected in the first half of 2024.
In September, Vir initiated a phase I study of VIR-1388, an investigational novel vaccine for the prevention of HIV.
The development of other pipeline candidates is imperative for Vir Biotechnology to maintain momentum, given the pipeline and regulatory setbacks.
Vir markets Xevudy with GSK. However, the FDA withdrew the emergency use authorization granted to GSK/Vir Biotechnology’s Xevudy as it was shown to be ineffective against the Omicron variant. Consequently, this stream of revenue has become nil.
Zacks Rank & Other Stocks to Consider
Vir currently carries a Zacks Rank #2 (Buy). Some other top-ranked biotech companies are Regeneron Pharmaceuticals (REGN - Free Report) , Sarepta Therapeutics (SRPT - Free Report) and Acadia (ACAD - Free Report) .
In the past 60 days, estimates for Regeneron’s 2024 earnings have risen from $41.57 per share to $43.66 per share. REGN’s stock has gained 29.3% in the past year. The company beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 12.34%.
Loss estimates for Sarepta for 2023 have narrowed to $6.62 from $9.19 in the past 60 days, while earnings estimates for 2024 have increased to $1.99 from 46 cents in the past 60 days.
The loss per share estimate for Acadia has narrowed to 33 cents from 41 cents for 2023. The bottom-line estimate for 2024 is pinned at $1.04. ACAD's shares have jumped 56.2% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Vir Biotechnology (VIR) Gains 21.7% in 3 Months: Here's Why
Shares of Vir Biotechnology (VIR - Free Report) have gained 21.7% in the past three months compared with the industry’s growth of 7.5%.
Last month, Vir announced a restructuring plan to reduce operating expenses and focus on investing in programs with the highest potential for value creation. The update was cheerful for investors, as pipeline setbacks dampened growth prospects.
Image Source: Zacks Investment Research
The company will now primarily focus on chronic hepatitis delta and chronic hepatitis B clinical programs, and antibody platforms to target infectious diseases, autoimmune diseases and oncology.
Vir announced a 12% reduction in its workforce. Consequently, the headcount will be reduced by 75. The reductions include the discontinuation of the company’s innate immunity small molecule group, which was initiated in the third quarter of 2023. The reductions will be substantially complete by the first quarter of 2024.
R&D facilities in St. Louis, MO, and Portland, OR, will be closed in 2024. However, research activities will continue at the company’s sites in San Francisco, California and Bellinzona, Switzerland.
The firm expects to incur charges between $30 million and $40 million through the third quarter of 2024, primarily related to facility closures and, to a lesser extent, employee severance costs. Of these, approximately $3-$4 million will be cash expenditure.
As a result of the above-mentioned actions, VIR will reduce its cost structure by at least $40 million annually.
Vir Biotechnology ended the third quarter with $1.7 billion in cash, cash equivalents and investments.
Concurrent with the third quarter, the company has announced that it is expanding its strategic focus to autoimmune diseases and immuno-oncology.
VIR expects to report new clinical data from its ongoing phase II study evaluating its monoclonal antibody tobevibart (VIR-3434) and its siRNA elebsiran (VIR-2218) for the treatment of chronic hepatitis delta (SOLSTICE trial) in the second quarter of 2024.
We remind investors that share price plunged in July 2023 after VIR announced that the mid-stage PENINSULA (study evaluating VIR-2482 for the prevention of symptomatic influenza A did not meet primary or secondary efficacy endpoints. The study was the first phase II outpatient trial to evaluate the role of a monoclonal antibody in the prevention of influenza A illness.
Meanwhile, the phase II PREVAIL platform trial and its THRIVE/STRIVE sub-protocols are ongoing. The platform is evaluating combinations of VIR-3434, VIR-2218 and/or peginterferon alpha in two chronic hepatitis B patient populations with the potential to evaluate other populations in the future. Initial data from this platform trial are expected in the first half of 2024.
In September, Vir initiated a phase I study of VIR-1388, an investigational novel vaccine for the prevention of HIV.
The development of other pipeline candidates is imperative for Vir Biotechnology to maintain momentum, given the pipeline and regulatory setbacks.
Vir markets Xevudy with GSK. However, the FDA withdrew the emergency use authorization granted to GSK/Vir Biotechnology’s Xevudy as it was shown to be ineffective against the Omicron variant. Consequently, this stream of revenue has become nil.
Zacks Rank & Other Stocks to Consider
Vir currently carries a Zacks Rank #2 (Buy). Some other top-ranked biotech companies are Regeneron Pharmaceuticals (REGN - Free Report) , Sarepta Therapeutics (SRPT - Free Report) and Acadia (ACAD - Free Report) .
Regeneron currently sports a Zacks Rank #1 (Strong Buy), and Acadia and Sarepta carry the same rank as Vir. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Regeneron’s 2024 earnings have risen from $41.57 per share to $43.66 per share. REGN’s stock has gained 29.3% in the past year. The company beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 12.34%.
Loss estimates for Sarepta for 2023 have narrowed to $6.62 from $9.19 in the past 60 days, while earnings estimates for 2024 have increased to $1.99 from 46 cents in the past 60 days.
The loss per share estimate for Acadia has narrowed to 33 cents from 41 cents for 2023. The bottom-line estimate for 2024 is pinned at $1.04. ACAD's shares have jumped 56.2% in the past year.