GSK and Vir Biotechnology Announce $250 Million Equity Investment and Collaboration to Develop Therapeutics and Vaccines Against Coronaviruses Including SARS-CoV-2

On April 6, GSK and Vir Biotechnology announced that they had signed a binding agreement to jointly develop therapies for coronavirus infections, including drugs targeting the novel coronavirus SARS-CoV-2.

This collaboration is primarily based on Vir Biotechnology’s proprietary monoclonal antibody technology platform, which enables the rapid screening of novel antiviral antibodies to provide therapeutic and preventive solutions for the current COVID-19 pandemic and future outbreaks. The two parties will leverage GSK’s expertise in genomics, along with their combined technological capabilities in CRISPR screening and artificial intelligence, to screen for anti-coronavirus compounds targeting host cell genes. Furthermore, building on their prior experience, the partners will develop vaccines against SARS-CoV-2 and other coronaviruses.

Given the urgent need for COVID-19 therapeutics, the initial focus of the collaboration will be to accelerate the development of VIR-7831 and VIR-7832, candidate antibody drugs identified through Vir’s antibody platform. These candidates have demonstrated high affinity for the spike protein of SARS-CoV-2 and potent neutralizing activity against the virus. Subject to regulatory approval, the parties plan to directly initiate Phase II clinical trials within the next three to five months.

The scope of collaboration between the two parties also includes leveraging Vir Biotechnology’s CRISPR screening and machine learning approaches to identify cellular targets capable of inhibiting viral infection. Vir has previously identified multiple potential targets against influenza and other respiratory pathogens, as well as hepatitis B virus, and will now focus primarily on targets related to SARS-CoV-2.

Furthermore, GSK and Vir Biotechnology have agreed to leverage their respective technical strengths in vaccine development and the identification of viral antigenic epitopes to jointly develop vaccines against SARS-CoV-2 and other coronaviruses. This collaboration will also provide new support for GSK’s ongoing efforts to develop COVID-19 vaccines.

To acquire technology from Vir Biotechnology, GSK will make a $250 million equity investment in Vir Biotechnology at a price of $37.73 per share, representing a 10% premium over the closing price on Friday, March 27, 2020.

Dr. Hal Barron, Chief Scientific Officer and President of Research and Development at GSK, stated: “Vir’s unique antibody platform has achieved success in screening and developing antibodies against multiple pathogens, which is highly complementary to our research achievements and technologies focused on immunology. We are pleased that our two companies can collaborate, pooling our talent and passion to develop treatments for a variety of diseases, including highly promising candidate antibodies for COVID-19.”

Dr. George Scangos, CEO of Vir Biotechnology, stated, “It is clear that a multi-pronged approach is essential to halt the coronavirus pandemic. The current outbreak of the novel coronavirus is certainly not the last. We are pleased to partner with GSK, which has a clear strategic vision for antiviral drug development, extensive expertise and experience in vaccine development, and an impressive track record in delivering innovative medicines to people around the world.”

On February 25, WuXi Biologics also entered into a collaboration agreement with Vir Biotechnology for the development and manufacturing of fully human monoclonal antibodies against COVID-19. The two parties will jointly advance the clinical development, manufacturing, and commercialization of Vir’s leading antibody candidates for the treatment of COVID-19. WuXi Biologics will support antibody cell line development, process and formulation development, as well as early-stage clinical manufacturing. Upon regulatory approval of these antibodies, WuXi Biologics will have the right to commercialize the related products in Greater China, while Vir will retain the commercialization rights for all other global markets.