Vir Biotech Stock Surges on BofA Upgrade to Buy

Vir Biotechnology's stock surged 12% after Bank of America upgraded it to Buy from Neutral, citing upside potential in its late-stage liver disease program. The bank raised its price target to $14, implying a 215% upside, and increased its probability of success for the program to 55%. It also highlighted hidden value in Vir's oncology pipeline, with combined unadjusted peak sales potentially exceeding $4 billion.

Vir Biotechnology (NASDAQ:VIR) saw its stock surge 17% on Wednesday following an upgrade by BofA Securities from Neutral to Buy, with a new price target of $14.00. The stock was trading at $4.44 before the upgrade, which suggests substantial upside potential [1].

The upgrade comes as BofA Securities believes the market is underestimating the potential of Vir’s treatment for severe liver disease caused by hepatitis delta virus (HDV). Analyst Geoff Meacham projects that this treatment could generate over $1 billion in unadjusted peak sales [2]. Additionally, the analyst noted that minimal value is currently attributed to Vir’s T-cell engager (TCE) oncology programs despite initial proof-of-concept data [2].

Meacham highlighted two key catalysts driving upside over the next 12 months. The first is spending on the pivotal ECLIPSE phase 3 trials, which is justified given derisking data from last year, with potentially share-moving trial readouts expected in late 2026. The second catalyst is the hidden value in Vir’s masked TCEs, which may be differentiated from competitors in terms of dosing frequency and efficacy in major cancer types including breast, prostate, and colorectal cancer [2].

The upgrade also comes as Vir works to expand its pipeline beyond infectious diseases into oncology and hepatology, with investors showing renewed interest in the company’s development programs [1].

References:
[1] https://www.investing.com/news/stock-market-news/vir-biotechnology-stock-soars-after-bofa-upgrade-14-target-93CH-4213052
[2] https://www.investing.com/news/analyst-ratings/bofa-securities-upgrades-vir-biotechnology-stock-to-buy-on-hdv-treatment-potential-93CH-4212478