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Vir Biotechnology (VIR)
NASDAQ:VIR
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Vir Biotechnology
(NASDAQ:VIR)
51Neutral
Positive Factors
Financial Stability
Vir ended 4Q24 with approximately $1.1B in cash and investments, providing financial runway into mid-2027.
Regulatory Approvals
Recent FDA Breakthrough and Fast Track designations, along with EMA PRIME and Orphan Drug status, support an accelerated approval pathway for Vir's HDV combination regimen.
Negative Factors
Trial Outcome Concerns
The company's shares are expected to remain range-bound over the near-to-midterm due to concerns over the value-accretive potential from HBV phase 2 and HDV phase 3 trial updates.
Vir Biotechnology (VIR) vs. S&P 500 (SPY)
Market Cap
$1.01B
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth-13.90%
EPS Growth16.56%
CountryUS
Employees587
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.83
Shares Outstanding137,143,280
10 Day Avg. Volume1,397,462
30 Day Avg. Volume1,244,720
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)13.56
Price to Cash Flow (P/CF)-2.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.00Price Target Upside337.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Vir Biotechnology Business Overview & Revenue Model
Company DescriptionVir Biotechnology, Inc. engages in the provision of technologies to treat and prevent infectious diseases. Its technology platforms include antibody, T cell, innate immunity, and siRNA. The company was founded by Robert Taylor Nelsen, Klaus Frueh, Jay Parrish, Lawrence Corey, and Louis Picker in 2016 and is headquartered in San Francisco, CA.
How the Company Makes MoneyVir Biotechnology generates revenue through a combination of product sales, licensing agreements, and strategic collaborations. The company's key revenue streams include milestone and royalty payments from partnerships with pharmaceutical companies, such as its collaboration with GlaxoSmithKline for the development and commercialization of monoclonal antibodies for the treatment of COVID-19. Additionally, Vir monetizes its proprietary technology platforms and intellectual property by entering into licensing agreements with other firms in the biotechnology and pharmaceutical sectors. Government grants and funding for research and development initiatives also contribute to its earnings.
Vir Biotechnology Financial Statement Overview
Summary
Vir Biotechnology faces financial challenges with declining revenues and profitability. The balance sheet is stable with low leverage, but cash flow difficulties persist, impacting operational flexibility. The company needs to improve revenue generation and cash flow management to enhance financial health.Income Statement
Vir Biotechnology has struggled with profitability over the years, moving from a profitable year in 2022 to substantial losses in 2023 and 2024. The net profit margin has been negative in recent years, with a significant decline in revenue from 2022 to 2024, indicating challenges in maintaining revenue growth. The consistent negative EBIT and EBITDA margins further emphasize profitability issues.40
Negative
Balance Sheet
The company maintains a strong equity position with a high equity ratio, indicating a solid foundation relative to its total assets. The debt-to-equity ratio is low, suggesting limited leverage and financial risk. However, the decrease in stockholders' equity from 2022 to 2024 reflects potential issues in maintaining asset value or profitability.65
Positive
Cash Flow
Vir Biotechnology's cash flow situation is challenging, with consistently negative free cash flow in recent years, highlighting operational inefficiencies or high capital expenditures. The operating cash flow to net income ratio is negative, indicating difficulties in converting income into cash. However, substantial cash and short-term investments provide a buffer.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 74.20M | 86.18M | 1.58B | 1.09B | 67.25M | Gross Profit |
| 73.36M | 83.42M | 1.43B | 1.02B | -234.33M | EBIT |
| -587.16M | -684.30M | 833.07M | 276.89M | -296.98M | EBITDA |
| -537.61M | -664.85M | 833.07M | 420.75M | -289.80M | Net Income Common Stockholders |
| -521.96M | -615.06M | 515.84M | 528.58M | -298.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 990.38M | 1.52B | 2.40B | 708.14M | 736.86M | Total Assets |
| 1.40B | 1.92B | 2.80B | 1.95B | 918.76M | Total Debt |
| 90.14M | 124.54M | 127.97M | 133.56M | 66.56M | Net Debt |
| -222.19M | -117.04M | -720.66M | -214.25M | -370.02M | Total Liabilities |
| 248.43M | 328.82M | 724.13M | 522.42M | 201.91M | Stockholders Equity |
| 1.15B | 1.59B | 2.08B | 1.43B | 716.85M |
| Cash Flow | Free Cash Flow | |||
| -453.65M | -800.36M | 1.60B | -69.41M | -197.49M | Operating Cash Flow |
| -446.35M | -778.78M | 1.66B | -47.59M | -190.94M | Investing Cash Flow |
| 499.37M | 164.63M | -1.19B | -140.81M | -9.86M | Financing Cash Flow |
| 4.39M | 7.48M | 34.76M | 100.33M | 529.47M |
Vir Biotechnology Technical Analysis
Negative
7.32
Price Trends
9.32
Negative
8.66
Negative
8.79
Negative
Market Momentum
-0.57
Positive
30.85
Neutral
13.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIR, the sentiment is Negative. The current price of 7.32 is below the 20-day moving average (MA) of 8.70, below the 50-day MA of 9.32, and below the 200-day MA of 8.79, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 30.85 is Neutral, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIR.
Vir Biotechnology Risk Analysis
Vir Biotechnology disclosed 63 risk factors in its most recent earnings report. Vir Biotechnology reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vir Biotechnology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $78.51B | 18.73 | 15.95% | 0.12% | 8.27% | 10.35% | |
75 Outperform | $142.50B | 306.43 | 2.28% | 2.69% | 6.16% | -91.54% | |
54 Neutral | $23.61B | ― | -3.38% | ― | -27.64% | -172.62% | |
51 Neutral | $1.01B | ― | -38.09% | ― | -13.90% | 16.56% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
48 Neutral | $13.03B | ― | -28.77% | ― | -52.75% | 25.00% | |
39 Underperform | $1.27B | ― | 30.06% | ― | -30.65% | 77.62% |
* Healthcare Sector Average
Performance Comparison
VIR
Vir Biotechnology
7.32
-3.20
-30.42%
GILD
Gilead Sciences
113.99
41.96
58.25%
NVAX
Novavax
8.10
3.12
62.65%
REGN
Regeneron
689.50
-268.31
-28.01%
MRNA
Moderna
35.01
-68.45
-66.16%
BNTX
BioNTech SE
100.31
7.40
7.96%
Vir Biotechnology Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -20.43% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Vir Biotechnology reported a transformative year with significant advancements in their pipeline, particularly in the oncology and infectious disease sectors. The financial position is strong with improved cost management leading to a reduced net loss and a solid cash runway. However, the promising clinical results are from heavily pre-treated populations, and there is a reliance on partnerships for the hepatitis B program. Overall, the highlights and strategic advancements outweigh the challenges.Highlights
Transformative Year for Vir Biotechnology
2024 was described as transformative, with significant strides made in oncology and infectious disease programs, positioning Vir Bio at the forefront of innovative therapies.
ECLIPSE Phase III Program Initiation
Preparations for the ECLIPSE Phase III program in hepatitis delta are underway, with initiation expected in the first half of the year. Regulatory designations received include U.S. FDA breakthrough therapy and Fast Track designation, as well as EMA PRIME designation and Orphan Drug status.
Promising T-cell Engager Results
VIR-5818 and VIR-5500 T-cell engagers showed promising early signs of clinical activity in colorectal and prostate cancer, respectively, with encouraging safety profiles and impressive PSA responses.
Strong Financial Position
The company has a cash runway extending into mid-2027, achieved by significantly reducing operating expenses and cash burn.
Significant Financial Improvements
R&D expenses decreased by approximately 30% year-over-year, and G&A expenses were reduced by 32% year-over-year. Net loss decreased by approximately 32% from the previous year.
Lowlights
Heavily Pre-treated Patient Populations
The promising results from T-cell engagers are observed in heavily pretreated patient populations who have exhausted all standard of care options, indicating a challenging patient demographic.
Dependency on Partnerships for HBV Program
The hepatitis B program will only move forward with a development and commercialization partner, indicating dependency on external collaborations for progress.
Company Guidance
During the call, Vir Biotechnology provided guidance for 2025, highlighting several key metrics and strategic priorities. The company is focused on advancing its ECLIPSE Phase III program for hepatitis delta, which is expected to initiate in the first half of 2025. Vir has secured significant regulatory designations, including FDA breakthrough therapy and Fast Track, as well as EMA PRIME and Orphan Drug status, underscoring the potential impact of its combination therapy. For its oncology portfolio, Vir is progressing with its PRO-XTEN platform, with promising early data in HER2 and PSMA targeted T-cell engagers showing strong clinical activity. The company plans to initiate a Phase I study for its EGFR targeted T-cell engager in the first half of 2025. Financially, Vir reported a strong position with $1.1 billion in cash, cash equivalents, and investments, providing a runway into mid-2027. The company has also achieved significant reductions in R&D and G&A expenses, reflecting a disciplined approach to capital allocation and cost management.Vir Biotechnology Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Vir Biotechnology Announces Leadership Change in 2025
Neutral
Jan 30, 2025
On January 24, 2025, Vir Biotechnology announced the departure of their Executive Vice President and Chief Technology Officer, Ann (Aine) M. Hanly, Ph.D., effective February 26, 2025. The company appointed Maninder Hora, Ph.D. as her successor, effective February 27, 2025, which indicates a strategic shift in leadership that could impact the company’s operational dynamics and stakeholder confidence.
Product-Related AnnouncementsBusiness Operations and Strategy
Vir Biotechnology Reports Promising Trial Results for Cancer Therapies
Positive
Jan 8, 2025
Vir Biotechnology announced promising Phase 1 trial results for its dual-masked T-cell engagers, VIR-5818 and VIR-5500, targeting HER2-expressing solid tumors and PSMA in metastatic castration-resistant prostate cancer respectively. The data showed compelling early clinical responses and a favorable safety profile, with no dose-limiting toxicities and no severe cytokine release syndrome observed. The findings support the potential of Vir’s PRO-XTEN masking technology to improve treatment efficacy and tolerability, which could lead to novel therapeutic options for cancer patients.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.