--- title: "Vir Biotechnology signs $335 million Astellas deal" url: "https://aibio.space/news/vir-biotechnology-signs-335-million-astellas-deal-then-prices-stock/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2026-02-23" section: "Financings" tickers: "NASDAQ:VIR" source: "https://www.sec.gov/Archives/edgar/data/1706431/000162828026010740/a20260223-q4ex991astellasv.htm" summary: "Vir Biotechnology will receive $335 million in upfront and near-term payments from Astellas for VIR-5500, a prostate cancer T-cell engager still in Phase 1" --- By the aibio.space news desk. Sources - [Vir Biotechnology, Inc. 8-K (2026-02-23)](https://www.sec.gov/Archives/edgar/data/1706431/000162828026010740/a20260223-q4ex991astellasv.htm) - [d25135d424b5.htm](https://www.sec.gov/Archives/edgar/data/1706431/000119312526067212/d25135d424b5.htm) - [d25135d424b5.htm](https://www.sec.gov/Archives/edgar/data/1706431/000119312526077336/d25135d424b5.htm) - [Vir Biotechnology, Inc. 10-K (2026-02-23): business](https://www.sec.gov/Archives/edgar/data/1706431/000162828026010749/vir-20251231.htm) - [Vir Biotechnology, Inc. financial data (SEC XBRL)](https://www.sec.gov/Archives/edgar/data/1706431/000162828026010749/) [VIR](https://aibio.space/companies/vir-biotechnology/) 2026-02-23 # Vir Biotechnology signs $335 million Astellas deal, then prices stock offering at $8.50 Tickers [VIR](https://aibio.space/companies/vir-biotechnology/) Vir Biotechnology will receive $335 million in upfront and near-term payments from Astellas for VIR-5500, a prostate cancer T-cell engager still in Phase 1. Its February 25 prospectus supplement priced a $150,000,002 stock offering at $8.50 per share. ## Key facts - **Company**: Vir Biotechnology, Inc. (NASDAQ: VIR) - **News type**: Financings - **Primary source**: [Vir Biotechnology, Inc. 8-K (2026-02-23)](https://www.sec.gov/Archives/edgar/data/1706431/000162828026010740/a20260223-q4ex991astellasv.htm) *A trading board being updated by hand. Photo: Carol M Highsmith, CC0, via rawpixel. The picture shows the field, not the companies named.* Vir Biotechnology, Inc., a clinical-stage company based in San Francisco and listed on Nasdaq as VIR, and Astellas Pharma Inc. announced on February 23, 2026 a global collaboration on VIR-5500. The drug is a PSMA-targeting PRO-XTEN dual-masked CD3 T-cell engager for prostate cancer. The agreement was signed February 19, 2026 and is subject to closing conditions, including Hart-Scott-Rodino clearance. ## The Astellas payments and terms Vir will receive $335 million in upfront and near-term payments. That total includes $240 million in cash, a $75 million equity investment by Astellas at a 50% premium, and a near-term $20 million milestone. Vir is also eligible for up to $1.37 billion in development, regulatory and sales milestones, plus tiered, double-digit royalties on ex-U.S. net sales. The two companies would split U.S. profit and loss equally. Astellas would be responsible for 60% of global development costs and Vir for 40%. Astellas would lead U.S. commercialization, with Vir holding an option to co-promote, and hold exclusive ex-U.S. rights. The release describes VIR-5500 as currently in Phase 1 development for advanced, metastatic prostate cancer. The company's prospectus supplement gives early data from the monotherapy dose-escalation trial: 58 patients, a data cut-off of January 9, 2026, and no dose-limiting toxicities to date. Grade 3 or higher treatment-related adverse events occurred in 12% (7/58) of patients, and cytokine release syndrome in 50% (29/58), mostly Grade 1. Efficacy was reported only in the highest dose cohorts. Among 17 PSA-evaluable patients, PSA50 declines occurred in 82% (14/17) and PSA90 declines in 53% (9/17). Objective responses were seen in 45% (5/11) of RECIST-evaluable patients, four of them confirmed. These are small, uncontrolled Phase 1 numbers in heavily pretreated patients, which the company calls proof-of-concept. The $335 million is not all cash, and the package depends on the deal closing. Under its Sanofi license, Vir will share 20% of certain future collaboration proceeds with Sanofi. ## The stock offering that followed The company filed a preliminary prospectus supplement on February 24, 2026 for a proposed $200,000,000 common stock offering, citing a last reported sale price of $7.43 on February 23. The final prospectus supplement, dated February 25, 2026, covers 17,647,059 shares at $8.50 per share, or $150,000,002 in total. Underwriting discounts are $0.4675 per share, or $8,250,000, leaving proceeds of $141,750,001 before expenses. The underwriters have a 30-day option to buy up to 2,647,058 more shares. Delivery was expected on or about February 27, 2026, and the last reported sale price on February 25 was $10.00. Goldman Sachs & Co. LLC, Leerink Partners LLC, Evercore Group L.L.C. and Barclays Capital Inc. are the representatives of the underwriters. Goldman Sachs is allocated 6,705,882 shares, Leerink 5,117,647, Evercore 4,058,824 and Barclays 1,764,706. Lazard acted as Vir's exclusive financial advisor on the Astellas deal, according to the press release. Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, of San Francisco, will pass upon the shares for Vir, and Latham & Watkins LLP, of Costa Mesa, California, represents the underwriters. ## Cash, losses and what the company says it will fund The annual report for 2025, filed February 23, 2026, shows revenue of $68.6 million, a net loss of $438.0 million and $391.8 million used in operations. The February 25 supplement says Vir had cash, cash equivalents and investments of about $781.6 million at December 31, 2025. It says that amount, together with the Astellas payments and cost-sharing, will fund current operating plans into the second quarter of 2028. The net proceeds of the offering are to fund Vir's share of VIR-5500 development costs, its other TCE programs and general corporate purposes. The Astellas stock purchase is for 7,239,382 shares at $10.36 per share, and it is subject to closing of the collaboration. The offering price of $8.50 is below that. The supplement puts net tangible book value at $5.31 per share at December 31, 2025 and immediate dilution to new investors at $2.89 per share, based on 139,474,954 shares outstanding. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story VIR Vir Biotechnology, Inc. NASDAQ ยท United States Open the starter desk ## More in Financings Financings ### [INmune Bio raises $4.50 million in registered direct offering with warrants](https://aibio.space/news/inmune-bio-raises-4-50-million-registered-direct-offering-warrants/) Oct 29, 2026 Financings ### [Lexeo Therapeutics files $300 million shelf registration](https://aibio.space/news/lexeo-therapeutics-files-300-million-shelf-registration/) Oct 29, 2026 Financings ### [ProKidney files $650 million shelf with $200 million Jefferies sales program](https://aibio.space/news/prokidney-files-650-million-shelf-200-million-jefferies-sales-program/) Oct 29, 2026 --- Source page: https://aibio.space/news/vir-biotechnology-signs-335-million-astellas-deal-then-prices-stock/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Vir Biotechnology signs $335 million Astellas deal", 2026-02-23, https://aibio.space/news/vir-biotechnology-signs-335-million-astellas-deal-then-prices-stock/