Vir Biotechnology Halts Most of Its Virology Research Amid Major Restructuring, Shifts Focus to Cancer Field in Exclusive Licensing Agreement with Sanofi
Vir Biotechnology announced a strategic reform on Thursday (August 1), which includes a significant shift in its R&D focus and comprehensive structural changes.
Businesspeople having a meeting in a conference room (Image source: iStock, Photographer Paul Bradbury)
As part of its Q2 business results, Vir Biotechnology revealed that it will no longer continue its work on COVID-19 and influenza, while also halting its T-cell based viral vector platform. Instead, the biotech company will limit its virology operations to its hepatitis B and D programs, allowing it to focus solely on "the nearest high-value opportunities."
Vir Biotechnology also reached a global licensing agreement with Sanofi on Thursday, marking its shift into the cancer field. Under the agreement, the biotech company will pay an undisclosed upfront fee to Sanofi and has committed to future development, regulatory, and commercial milestone payments based on net sales. Sanofi will also be entitled to tiered royalties on global net sales for any products that reach the market.
In return, Vir's investment will grant it exclusive licenses to three investigational T-cell engagers. The first, known as SAR446309, is a bispecific HER2xCD3 molecule currently in Phase I development for the treatment of metastatic, treatment-resistant HER2-positive tumors, such as breast and colorectal cancer. The second asset, SAR446329, is a bispecific PSMAxCD3 candidate undergoing early evaluation for metastatic castration-resistant prostate cancer.
The third asset, SAR446368, is also a bispecific T-cell engager targeting EGFR and CD3 antigens. This asset is planned to enter Phase I studies in the first quarter of 2025 for various EGFR-positive cancers.
Sanofi Acquires Amunix Pharmaceuticals and Its Three Molecules for $1 Billion in December 2021. However, the pharmaceutical company ultimately decided to divest Amunix along with its assets and 100 employees in April 2024 as part of its own restructuring efforts.
Under Vir's strategic reform, this biotechnology company will cut 25% of its workforce, eliminating approximately 140 positions in its operations. At the same time, it will bring in some "key employees with extensive expertise in T-cell engager science and development" from Sanofi as part of its agreement.
Vir Biotechnology Now Expects to Have Approximately 435 Employees by the End of the Year, About 200 Fewer Than the Peak Number of Employees in Mid-2023.
Due to its realignment plan, Vir expects to save approximately $50 million annually in labor costs starting from 2025, with an additional $50 million saved from phasing out specific programs. The restructuring plan will cost Vir approximately $11 million to $13 million, primarily due to severance payments.
In the second quarter of 2024, Vir's revenue was $3.1 million, down from $3.8 million in the same period last year. As of June 30, 2024, Vir had $1.43 billion in cash, cash equivalents, and investments.
References:
https://www.biospace.com/business/vir-lays-off-25-of-staff-abandons-most-virus-work-and-pivots-to-cancer-in-sanofi-deal
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