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Vir Biotechnology, Inc. (NASDAQ: VIR) is moving higher as investors respond to a major collaboration with Gilead Sciences focused on developing next-generation cancer therapies.

• Gilead and Vir signed a multi-program collaboration and license agreement potentially worth approximately $1.87 billion to $1.9 billion. The partnership will use Vir’s PRO-XTEN® technology to discover and develop three dual-masked T-cell engagers for solid tumors, providing significant commercial validation for Vir’s platform and potential access to substantial milestone payments. Gilead and Vir forge $1.9bn pact to develop next-gen T-cell engagers
• Gilead is also purchasing approximately 1.76 million Vir shares for $25 million, giving Vir additional funding while establishing a strategic equity relationship with a large pharmaceutical partner. Vir Biotechnology Sells 1.76 Million Shares to Gilead in $25M Stock Deal
• The agreement strengthens Vir’s credibility in oncology and could improve the company’s ability to pursue additional licensing transactions. Vir’s CEO said the deal may create opportunities for further partnerships, while Barclays reiterated a Buy rating. Vir CEO sees opportunity to do more deals after striking Gilead pact
• The headline deal value is contingent on development, regulatory and commercial milestones rather than guaranteed near-term revenue. The programs also remain subject to clinical and regulatory risk. Vir partners with Gilead in deal for T-cell engagers
• The equity issuance modestly dilutes existing shareholders, and Vir remains loss-making, meaning investors may continue to focus on execution and the timing of future milestone payments. Gilead Enters Collaboration and License Agreement with Vir Biotechnology