Vir Biotechnology, Inc. (Nasdaq: VIR) has entered into a strategic collaboration and license agreement with Gilead Sciences, Inc. to develop novel cancer therapeutics. The partnership focuses on discovering and engineering three dual-masked T-cell engagers (TCEs) targeting solid tumor-associated antigens.
Under the terms of the agreement, Vir Biotechnology will utilize its proprietary dAIsY platform and PRO-XTEN masking technology to design the candidates. Gilead has been granted an exclusive license to nominate, develop, manufacture, and commercialize the resulting therapeutics.
Financially, Vir Biotechnology is eligible to receive up to $135 million in upfront and near-term preclinical milestone payments. This includes a $90 million upfront payment, consisting of $65 million in cash and a $25 million equity investment. Additionally, the company may receive up to $1.74 billion in future development, regulatory, and commercial milestones, along with tiered royalties on net sales.
Concurrently with the agreement, Vir Biotechnology and Gilead executed a Stock Purchase Agreement. Gilead agreed to purchase 1,765,486 shares of Vir Bio’s common stock at a price of $14.16 per share, representing an aggregate purchase price of approximately $25 million. The transaction is exempt from registration under Section 4(a)(2) of the Securities Act of 1933.
The collaboration is the second time Vir Biotechnology has partnered with Gilead, building upon the company’s established PRO-XTEN masking technology.
