H.C. Wainwright sees regulatory wins boosting Vir Biotechnology stock potential

EditorEmilio Ghigini
Published 08/20/2024, 07:14 PM
VIR
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On Tuesday, H.C. Wainwright maintained a Buy rating for Vir Biotechnology (NASDAQ:VIR) stock, with a consistent price target of $110.00.

The firm highlighted recent significant developments from Vir, including the FDA's green light for an Investigational New Drug application and the granting of Fast Track designation for a combination hepatitis treatment on June 26.

The treatment involves the monoclonal antibody tobevibart (VIR-3434) and the small interfering RNA elebsiran (VIR-2218) for chronic hepatitis delta virus (CHD), a condition currently lacking approved therapies in the United States.

Vir Biotechnology is planning discussions with regulatory authorities in the third quarter of 2024 to consider potential expedited development pathways for their CHD treatment.

Additionally, the company is on schedule to release comprehensive 24-week treatment results from the Phase 2 SOLSTICE trial, which is assessing the tobevibart plus elebsiran combination, in the fourth quarter of 2024.

The company also aims to present 48-week end-of-treatment data from the Phase 2 MARCH trial, evaluating the same combination, with or without the immunomodulator pegylated interferon alpha, for chronic hepatitis B virus (CHB) infection, in the same quarter.

Further updates are anticipated in the first half of 2025, with initial data from the Phase 2 PREVAIL study and its THRIVE/STRIVE sub-protocols expected to be released.

On August 1, Vir announced a licensing agreement with Sanofi (NASDAQ:SNY) to acquire three next-generation T cell engager programs in immuno-oncology. Two of these programs are in Phase 1 development for treating solid tumors.

In a strategic shift, Vir Biotechnology has begun restructuring to concentrate on its viral hepatitis programs. This move includes phasing out its efforts in influenza, COVID-19, and its T cell-based viral vector platform.

The company is seeking partners, particularly for the influenza program. As of June 30, Vir reported having approximately $1.43 billion in cash, cash equivalents, and investments.

InvestingPro Insights

As Vir Biotechnology (NASDAQ:VIR) garners attention with its recent regulatory advancements and strategic restructuring, it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, Vir holds a market cap of approximately $1.2 billion. Despite a challenging market environment, the company's stock has shown resilience with a 3.18% price total return over the past week. However, it's important to note that Vir has experienced a significant revenue decline of approximately 83.93% over the last twelve months as of Q2 2024.

InvestingPro Tips highlight a mixed financial picture for Vir. While the company holds more cash than debt, indicating a solid liquidity position, it's also quickly burning through cash, which could raise concerns about long-term sustainability. Analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company to be profitable this year. These insights suggest a cautious approach for investors considering the company's future profitability and cash flow management.

For those looking to delve deeper into Vir Biotechnology's financials and market predictions, InvestingPro offers a comprehensive list of additional tips, providing a more detailed analysis of the company's prospects. To explore these insights, visit https://www.investing.com/pro/VIR.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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