Vir Biotechnology Shares Fall 9% After Terminating Agreement with WuXi Bio
21 May 2022 - 7:11AM
Dow Jones News
By Denny Jacob
Vir Biotechnology Inc. shares fell 9% to $24.36 in after-hours
trading Friday after the clinical-stage immunology company said
that it and WuXi Biologics Ltd. terminated their development and
manufacturing collaboration agreement, according to securities
filings.
Other existing agreements between Vir Biotechnology and WuXi
Biologics remain in effect, the company said.
The two companies entered into agreement in February 2020 in
which WuXi Biologics obtained rights to develop, manufacture and
commercialize certain of Vir Biotechnology's antibodies, including
VIR-7831, in China, Hong Kong, Macau and Taiwan.
VIR-7831 is a monotherapy for the early treatment of Covid-19 in
adults with a high risk of hospitalization.
All licenses granted under the agreement are terminated and all
rights to Vir Biotechnology's antibodies in those regions are
reverted to it, according to the securities filings. Vir
Biotechnology will make a one-time payment to WuXi Biologics of $7
million as part of the termination. It will also be obligated to
pay WuXi Biologics tiered royalties on net sales of VIR-7831 in
those regions ranging from low single digits to low double digits,
according to the securities filing.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
May 20, 2022 16:56 ET (20:56 GMT)
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