Vir Biotechnology Stock Skyrockets 65% on Positive Prostate Cancer Treatment Trial Results

Key Stats for Vir Biotechnology Stock

• Price change for Vir Biotechnology stock: 65%
• $VIR Share Price as of Feb. 23: $10
• 52-Week High: $54
• $VIR Stock Price Target: $42

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What Happened?

Vir Biotechnology stock (VIR) exploded higher on Monday, soaring 65% after the biotech company announced groundbreaking Phase 1 trial results for its prostate cancer treatment and revealed a major $1.7 billion partnership with pharmaceutical giant Astellas.

• The company reported quarterly results alongside the major announcements, posting a loss of $0.31 per share versus expectations of a $0.42 loss.
• Revenue came in at $64.07 million, crushing estimates of $18.67 million by more than 240%.
• While the earnings beat was notable, the real story is what’s happening with VIR-5500, the company’s experimental prostate cancer drug.
• VIR-5500 is a T-cell engager designed to treat metastatic castration-resistant prostate cancer (mCRPC), an aggressive form of the disease that affects roughly 100,000 patients in the U.S. and Europe.
• The Phase 1 data showed the drug is delivering impressive results in heavily pretreated patients who had exhausted most standard treatment options.
• The trial enrolled 58 patients with advanced mCRPC who had received a median of 4 prior lines of therapy. These were extremely sick patients with extensive disease, including 93% with bone metastases and 18% with liver metastases, which are typically associated with very poor outcomes.
• At the highest dose levels of 3,000 micrograms per kilogram or higher given every three weeks, the results were striking.
• Among patients with evaluable PSA levels (a key biomarker for prostate cancer), 82% achieved at least a 50% decline in PSA, more than half saw a 90% drop, and nearly a third had a 99% or greater reduction.
• Of the 11 patients evaluable for radiographic responses at these dose levels, 5 achieved objective responses, with tumors actually shrinking. Four of these were confirmed responses with one awaiting confirmation. The disease control rate was 64%.
• What makes these results particularly impressive is that they occurred in patients with challenging disease characteristics, including those with liver metastases who typically respond poorly to treatment.
• Dr. Johann de Bono, a leading prostate cancer researcher from the Institute of Cancer Research in the U.K., presented case studies showing complete resolution of liver metastases and dramatic pain improvement in several patients.
• The Astellas partnership, announced alongside the data, is a game-changer for Vir Biotechnology stock. Astellas, the maker of the leading prostate cancer drug XTANDI, will pay $315 million upfront (including $240 million in cash and $75 million in equity at a 50% premium to recent trading prices). Vir is also eligible for up to $1.37 billion in additional milestone payments.

Under the deal, the two companies will co-develop and co-commercialize VIR-5500 in the U.S. with a 50-50 profit split.

Outside the U.S., Astellas gets exclusive rights while Vir receives sales milestones and double-digit royalties.

Development costs are split 40% for Vir and 60% for Astellas, significantly reducing Vir’s financial burden while preserving substantial upside.

CEO Marianne De Backer emphasized that Astellas is the perfect partner given their deep expertise in prostate cancer and proven track record of successfully developing and commercializing therapies in the space.

• XTANDI has treated more than 1.5 million men worldwide, demonstrating Astellas’ commercial capabilities.
• The companies plan to initiate expansion cohorts in the second quarter of 2026, testing VIR-5500 as monotherapy in late-line mCRPC, in combination with enzalutamide in first-line mCRPC, and in combination therapy for metastatic hormone-sensitive prostate cancer.
• Phase 3 trials are expected to start in 2027.

CFO Jason O’Byrne noted that with the Astellas deal and existing cash of $782 million, Vir now has a runway extending into the second quarter of 2028.

This provides ample time to hit multiple value-creating milestones across the pipeline without raising additional capital in the near term.

For context, prostate cancer is the most common cancer diagnosed in men, affecting 1 in 8 during their lifetime. Despite treatment advances, the 5-year survival rate for patients with mCRPC is only 30%, highlighting the massive unmet need for better therapies.

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What the Market Is Telling Us About Vir Biotechnology Stock

The 65% surge in Vir Biotechnology stock shows investors are extremely excited about both the clinical data and the Astellas partnership.

The combination of compelling efficacy, favorable safety, and a well-structured deal with a top-tier partner has dramatically changed the investment thesis.

Vir Biotechnology stock was up over 25% year-to-date even before this announcement. The company has now transformed from a speculative biotech into a potentially commercial-stage oncology player with a validated platform technology.

The key for Vir Biotechnology stock going forward will be successfully executing on the expansion cohorts and Phase 3 development while advancing its other PRO-XTEN programs.

The financial backing from Astellas significantly de-risks the development path and provides credibility that this approach can succeed in solid tumors where others have struggled.

For long-term investors, the partnership structure preserves meaningful economics while reducing execution risk, making Vir an interesting way to gain exposure to innovation in cancer immunotherapy.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!