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Vir Biotechnology Shares Fall 9% After Terminating Agreement with WuXi Bio

By Denny Jacob

 

Vir Biotechnology Inc. shares fell about 9% to $22.13 in after-hours trading Friday after the clinical-stage immunology company said that it and WuXi Biologics Ltd. terminated their development and manufacturing collaboration agreement, according to securities filings.

Other existing agreements between Vir Biotechnology and WuXi Biologics remain in effect, the company said.

The two companies entered into agreement in February 2020 in which WuXi Biologics obtained rights to develop, manufacture and commercialize certain of Vir Biotechnology's antibodies, including VIR-7831, in China, Hong Kong, Macau and Taiwan.

VIR-7831 is a monotherapy for the early treatment of Covid-19 in adults with a high risk of hospitalization.

All licenses granted under the agreement are terminated and all rights to Vir Biotechnology's antibodies in those regions are reverted to it, according to the securities filings. Vir Biotechnology will make a one-time payment to WuXi Biologics of $7 million as part of the termination. It will also be obligated to pay WuXi Biologics tiered royalties on net sales of VIR-7831 in those regions ranging from low single digits to low double digits, according to the securities filing.

 

Write to Denny Jacob at denny.jacob@wsj.com

 

Corrections & Amplifications

This item was corrected at 5:19 p.m. ET to show that Vir Biotechnology's shares fell about 9% to $22.13, not $24.36.

(END) Dow Jones Newswires

May 20, 2022 16:56 ET (20:56 GMT)

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