Vir Biotechnology gains after up to $1.9 billion licensing deal with Gilead

By Reuters News

** Shares of Vir Biotechnology VIR.O rise 11.7% to $11.85 premarket

** Co inks collaboration and license agreement with Gilead GILD.O for three candidates targeting selected solid tumor-associated antigens

** VIR will be eligible to receive up to $135 million in total upfront and near-term preclinical milestone payments, and has the potential to receive up to $1.74 billion in further milestones, along with tiered royalties on net sales

** VIR is responsible for discovery, design and optimization, while Gilead will have an exclusive license to develop and commercialize the three T-cell engagers built on Vir's platform

** T-cell engagers are powerful anti-tumor agents designed to direct the immune system to destroy cancer cells

** Separately, cos also entered a stock purchase agreement under which GILD will buy about 1.77 million Vir shares at $14.16 each, for a total investment of roughly $25 million

** Up to last close, VIR stock up ~76% YTD

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