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Glaxo to Buy Stake in Vir Biotech, Signs Coronavirus Deal
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GlaxoSmithKline plc (GSK - Free Report) and Vir Biotechnology, Inc. (VIR - Free Report) signed a binding agreement to enter into a collaboration to develop antibody treatments for coronaviruses including SARS-CoV-2, the virus that caused the novel coronavirus disease, COVID-19. In addition, Glaxo will make an equity investment of $250 million in Vir’s stock to gain rights to the latter’s unique antibody platform technology
Vir Biotechnology has identified several specific antibody candidates using its proprietary monoclonal antibody platform technology. These include VIR-7831 and VIR-7832 antibodies that have demonstrated high affinity for the SARS-CoV-2 spike protein and can bind the virus and potentially treat COVID-19. Per the deal, Vir’s proprietary technology will be combined with Glaxo’s expertise in functional genomics to accelerate these promising antibody candidates directly into phase II clinical trials within the next three to five months, subject to regulatory review.
The companies will also work to find new anti-viral antibodies that could be developed into potential treatments for COVID-19 as well as research on SARS-CoV-2 and other coronavirus vaccines.
Vir Biotechnology’s stock was up almost 27% on Monday in response to the news while Glaxo’s shares were up 2.1%. This year so far, Vir Biotechnology’s stock has risen a massive 191.9% versus the industry’s decline of 11.6%.
Glaxo’s shares have declined 19.3% this year compared with the industry’s10.6% decline.
Vir Biotechnology has seen a significant surge in its share price in the last couple of months, owing to its efforts related to development of anti-COVID-19 treatments.
Last month, Vir Biotechnology signed a letter of intent with biotech giant, Biogen (BIIB - Free Report) for clinical manufacturing of human monoclonal antibodies that can bind SARS-CoV-2 virus and potentially treat COVID-19. Vir Biotechnology also announced a joint research project with National Institutes of Health Vaccine Research Center to identify combinations of antibodies against coronaviruses, including SARS-CoV-2, SARS and MERS. Vir Biotechnology also announced a collaboration with Alnylam Pharmaceuticals (ALNY - Free Report) to develop RNAi therapeutics targeting SARS-CoV-2.
Glaxo, too, has announced initiatives to develop a potential vaccine for COVID-19. It signed a collaboration deal with Coalition for Epidemic Preparedness Innovations (CEPI), a global organization based in Oslo to make its established pandemic vaccine adjuvant platform technology accessible to the latter to develop a vaccine for SARS-CoV-2. It also announced a research collaboration with China-based biotech Clover Biopharmaceuticals to evaluate a COVID-19 vaccine candidate using its pandemic adjuvant system.
Several drug/biotech companies are working on making new antibodies, drugs and vaccines to combat the disease. Around 20 companies are working on making coronavirus treatments or vaccines. The list includes bigger names like Gilead and J&J as well as smaller biotechs like Moderna. Though a treatment for COVID-19 is expected to be available this year, a vaccine is expected to be available for wider use not before next year.
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Glaxo to Buy Stake in Vir Biotech, Signs Coronavirus Deal
GlaxoSmithKline plc (GSK - Free Report) and Vir Biotechnology, Inc. (VIR - Free Report) signed a binding agreement to enter into a collaboration to develop antibody treatments for coronaviruses including SARS-CoV-2, the virus that caused the novel coronavirus disease, COVID-19. In addition, Glaxo will make an equity investment of $250 million in Vir’s stock to gain rights to the latter’s unique antibody platform technology
Vir Biotechnology has identified several specific antibody candidates using its proprietary monoclonal antibody platform technology. These include VIR-7831 and VIR-7832 antibodies that have demonstrated high affinity for the SARS-CoV-2 spike protein and can bind the virus and potentially treat COVID-19. Per the deal, Vir’s proprietary technology will be combined with Glaxo’s expertise in functional genomics to accelerate these promising antibody candidates directly into phase II clinical trials within the next three to five months, subject to regulatory review.
The companies will also work to find new anti-viral antibodies that could be developed into potential treatments for COVID-19 as well as research on SARS-CoV-2 and other coronavirus vaccines.
Vir Biotechnology’s stock was up almost 27% on Monday in response to the news while Glaxo’s shares were up 2.1%. This year so far, Vir Biotechnology’s stock has risen a massive 191.9% versus the industry’s decline of 11.6%.
Glaxo’s shares have declined 19.3% this year compared with the industry’s10.6% decline.
Vir Biotechnology has seen a significant surge in its share price in the last couple of months, owing to its efforts related to development of anti-COVID-19 treatments.
Last month, Vir Biotechnology signed a letter of intent with biotech giant, Biogen (BIIB - Free Report) for clinical manufacturing of human monoclonal antibodies that can bind SARS-CoV-2 virus and potentially treat COVID-19. Vir Biotechnology also announced a joint research project with National Institutes of Health Vaccine Research Center to identify combinations of antibodies against coronaviruses, including SARS-CoV-2, SARS and MERS. Vir Biotechnology also announced a collaboration with Alnylam Pharmaceuticals (ALNY - Free Report) to develop RNAi therapeutics targeting SARS-CoV-2.
Glaxo, too, has announced initiatives to develop a potential vaccine for COVID-19. It signed a collaboration deal with Coalition for Epidemic Preparedness Innovations (CEPI), a global organization based in Oslo to make its established pandemic vaccine adjuvant platform technology accessible to the latter to develop a vaccine for SARS-CoV-2. It also announced a research collaboration with China-based biotech Clover Biopharmaceuticals to evaluate a COVID-19 vaccine candidate using its pandemic adjuvant system.
Both Glaxo and Vir Biotechnology have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Several drug/biotech companies are working on making new antibodies, drugs and vaccines to combat the disease. Around 20 companies are working on making coronavirus treatments or vaccines. The list includes bigger names like Gilead and J&J as well as smaller biotechs like Moderna. Though a treatment for COVID-19 is expected to be available this year, a vaccine is expected to be available for wider use not before next year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>