Vir Biotechnology Inc VIR shares were advancing Wednesday after the company announced an expansion of its coronavirus vaccine collaboration with GlaxoSmithKline plc GSK.
What Happened: Vir and GlaxoSmithKline signed an agreement to expand an existing collaboration agreement to include the R&D of new therapies for influenza and other respiratory viruses.
The original agreement signed in April 2020 was focused on research and development of therapies for coronaviruses, including SARS-CoV-2, and monoclonal antibodies, or mAbs.
VIR-7831 and VIR-7832 are being evaluated under this collaboration.
The Expanded Deal Scope, Terms: The expanded agreement vests GlaxoSmithKline with exclusive rights to collaborate with Vir on the development of best-in-class mAbs for the prevention or treatment of influenza.
The agreement will cover Vir's Phase 1 asset VIR-2482, an intramuscularly administered investigational mAb designed as a universal prophylactic for influenza A, as well as next-generation antibodies for the prevention or treatment of influenza during a three-year research period.
GlaxoSmithKline will share costs on the development of all other influenza mAbs.
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As part of the new collaboration agreement, the companies will also engage in two additional research programs: an expansion to the current functional genomics collaboration to develop potential pan-coronavirus therapeutics to now include other respiratory virus targets, and development of up to three neutralizing mAbs identified to target non-influenza pathogens during a three-year research period.
Under the expanded collaboration, GlaxoSmithKline has agreed to will make an upfront payment of $225 million and a further equity investment in Vir of $120 million.
If GlaxoSmithKline exercises its option to co-develop VIR-2482, it will pay an option fee of $300 million. The company will also pay Vir up to $200 million based on the successful delivery of pre-defined regulatory milestones.
What's Next: Initial results from the first of the Phase 3 studies of VIR-7831 are expected in the first quarter. Additionally, VIR-7832 has been accepted into the NHS-supported AGILE Phase 1b/2a study, with a planned start in February.
GSK, VIR Price Action: GlaxoSmithKline shares were trading 0.17% higher at $35.71 at last check Wednesday, while Vir shares were up 9.25% at $73.61.
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