Vir Biotechnology, Inc. priced a new public offering of 17,647,058 shares of its common stock at $8.50 per share, generating expected gross proceeds of $150 million before underwriting discounts and commissions. All shares are being sold by the company, and underwriters have a 30‑day option to purchase up to an additional 2,647,058 shares at the offering price.
The offering is scheduled to close on February 27, 2026, subject to customary closing conditions. The financing will extend Vir’s cash runway beyond the second quarter of 2028, building on the $781.6 million in cash, cash equivalents, and investments reported as of December 31 2025 and the $335 million upfront and near‑term payments received from a strategic collaboration with Astellas Pharma.
Vir’s management said the capital raise will support its dual‑platform pipeline in infectious disease and oncology, and will help the company move beyond the COVID‑era revenue streams that previously accounted for a large portion of its top line. The company’s Q4 2025 revenue of $64.1 million—an increase of 411% from $12.4 million in Q4 2024—was largely driven by a $64.3 million license fee from Norgine, while full‑year 2025 revenue of $68.6 million fell 7% from $74.2 million in 2024.
Investors reacted negatively to the pricing, with the stock falling 13% to $8.67 and a 16% drop on the day of the announcement. The decline was attributed to the $8.50 offering price, which represented a 15% discount to the previous day's closing price of $10, and concerns about dilution and the company’s immediate funding needs.
Despite the market’s short‑term reaction, the offering provides Vir with a substantial capital cushion that supports ongoing clinical programs, including Phase 3 trials for its prostate cancer candidate VIR‑5500 and the Hepatitis Delta program. The company’s strategic partnership with Astellas, which includes up to $1.37 billion in future milestones, further strengthens its financial position and underscores the long‑term value of the pipeline.
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