'Seminal moment': Biotech Vir sees shares jump over 25% amid flurry of announcements

Shares of Vir Biotechnology, a small-cap developer of drugs for infectious diseases and cancer, soared on Tuesday by almost 28% to reach their highest level in more than a year. The company provided a series of updates, which were described as amounting to a “seminal moment” for Vir. They include, among other things, a partnership with Japan’s Astellas worth up to $1.71 billion. Against this backdrop, several investment banks raised their target prices for Vir stock.

Vir shares rose nearly 28% on the Nasdaq on Tuesday to $9.50 apiece, their highest level since early February 2025.

Markets were reacting to several company announcements. First, Vir announced a strategic partnership with Japanese pharma giant Astellas, under which the parties will jointly develop and bring to market a Vir drug candidate called VIR-5500, for prostate cancer.

Under the agreement, Astellas will receive exclusive rights to commercialize VIR-5500 outside of the U.S. and "lead commercialization" of VIR-5500 in the U.S. (with Vir Biotechnology retaining option to co-promote). Vir, in turn, will receive $335 million in upfront and near-term milestone payments and share equally with Astellas the profit or loss in the U.S. In addition, the small-cap biotech is entitled to receive up to $1.37 billion in milestone payments for development, registration, and sales of the drug, as well as tiered, double-digit royalties on net sales outside of the U.S.

Vir also shared a positive update from a phase I clinical trial of VIR-5500 in patients with advanced metastatic castration-resistant prostate cancer who have progressed after multiple lines of therapy.

“This is a seminal moment for Vir Biotechnology,” CEO Marianne De Backer said in a press release on the company’s financial results for the fourth quarter and full-year 2025. The biotech’s quarterly revenue grew 420% year over year to $64.1 million, largely due to an initial payment under another license agreement with Norgine. That agreement, signed in December 2025, relates to the development of a treatment for chronic hepatitis D. Like the collaboration with Astellas, it also demonstrates the "strength of our pipeline and technology platforms," according to De Backer.

In early trading on Wednesday, Vir’s shares were down more than 2%. The night before, the company put out another announcement, about a planned public offering of shares worth up to $300 million. In addition, underwriters will be entitled to shares worth up to $30 million as part of a 30-day option. The biotech did not disclose other parameters of the offering.

Against the backdrop of the announcements, at least three banks have raised their target prices on the stock, according to Yahoo Finance data. Needham raised its target by almost 29% to $18 per share, Evercore ISI by 50% to $18 per share, and Morgan Stanley by 20% to $24 per share.

The company’s shares have a total of nine ratings from Wall Street analysts: all are “buy.” The average target price is $20.25 per share, implying upside of more than 100%.