Vir Biotechnology shares jumped Wednesday morning after the company said it signed an agreement with Gilead Sciences to discover and develop next-generation t-cell engagers for solid tumors.
Shares traded 8.2% at $11.48 ahead of the morning bell.
The clinical-stage biopharmaceutical company has signed a collaboration and license agreement with Gilead to discover and engineer three novel dual-masked T-cell engager development candidates aimed at targeting solid tumor-associated antigens.
T-cell engagers, or TCEs, are powerful anti-tumor agents designed to direct the immune system, specifically T-cells, to destroy cancer cells. TCEs have become an important treatment option for blood cancers, but their usage in solid tumors has been limited due to toxicity.
Gilead will have an exclusive license to nominate and advance candidates developed under the collaboration and will be responsible for development, manufacturing and commercialization activities.
As part of the deal, Vir will be in line to receive a total of $135 million in payments, made up of a $65 million cash portion and a $25 million equity investment at a 30% premium, as well as up to $45 million in potential near-term preclinical milestones.
Vir added that it has the potential to receive up to $1.74 billion in further development, regulatory and commercial milestones, along with tiered high single-digit to low double-digit royalties on net sales.
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