Vir Biotechnology: From Covid to Cancer, a New Path Forward

Vir Biotechnology, once a darling of the Covid-19 stock market, has found a new path forward in the realm of cancer therapies. The company, which initially focused on developing treatments for infectious diseases, has shifted its focus to oncology, bolstering its clinical pipeline with three potential best-in-class dual-masked T-cell engagers in collaboration with Sanofi. This strategic pivot has not only expanded Vir's therapeutic areas but also strengthened its financial position, setting the stage for sustainable growth and patient impact.



Vir's new focus on cancer therapies is a strategic move that complements its existing pipeline, which includes treatments for infectious diseases like hepatitis delta and hepatitis B. This diversification can help mitigate risks associated with relying on a single therapeutic area and provides new opportunities for growth and revenue generation. The company's partnership with Sanofi for T-cell engagers has further strengthened its financial position, with upfront and potential milestone payments, as well as royalties on net sales of any approved products.



The three T-cell engagers in question target HER2, PSMA, and EGFR, which are overexpressed in various solid tumors. If successful, these therapies could be first-in-class treatments for these indications, offering significant market potential. In a Phase 1 clinical trial, VIR-5818, a dual-masked HER2-targeted T-cell engager, demonstrated encouraging preliminary safety and efficacy profiles. Early efficacy data showed that 50% (10/20) of participants receiving doses ≥400 µg/kg experienced dose-dependent tumor shrinkage across multiple HER2-positive tumor types. Notably, 33% (2/6) of participants with HER2-positive CRC achieved confirmed partial responses, with one patient continuing in complete response for more than 18 months as of the data cut-off.



VIR-5500, a dual-masked PSMA-directed T-cell engager, also showed promising safety and efficacy profiles in a Phase 1 dose escalation study. PSA declines were observed in 100% (12/12) of mCRPC patients, with PSA50 response confirmed in 58% (7/12) of patients receiving first step doses ≥120 µg/kg. The drug was well-tolerated, with no dose-limiting cytokine release syndrome (CRS) and no grade 3 or greater CRS observed. The extended half-life enables Q3W dosing, which could provide a significant competitive advantage over existing treatments.

Vir Biotechnology's partnership with Sanofi for T-cell engagers contributes to its long-term growth strategy by expanding its clinical pipeline, diversifying its therapeutic areas, accelerating development, providing financial benefits, and strengthening its financial position. The company's strategic restructuring and workforce reduction announced in August 2024, along with the financial benefits from the Sanofi partnership, can help fund Vir's ongoing research and development efforts, contributing to its long-term growth strategy.

In conclusion, Vir Biotechnology's strategic shift towards cancer therapies has opened up new opportunities for growth and revenue generation. The company's partnership with Sanofi for T-cell engagers has further strengthened its financial position, setting the stage for sustainable growth and patient impact. With a strong pipeline and promising clinical data, Vir Biotechnology is well-positioned to make a significant impact in the cancer therapy landscape.