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On Tuesday, H.C. Wainwright adjusted its price target for Vir Biotechnology (NASDAQ:VIR) shares, reducing it significantly to $15 from the previous $110 while maintaining a Buy rating. Currently trading at $4.64, the stock has declined over 52% in the past year and is trading near its 52-week low of $4.32. The revision follows the release of data from the Phase 2 MARCH study on chronic hepatitis B virus (CHB) treatment, which did not meet the functional cure thresholds necessary for advancing to a Phase 3 trial without a global partner. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The firm’s analyst cited the removal of CHB potential from their estimates as the primary reason for the price target adjustment. With a current market capitalization of $641 million, the company faces near-term challenges, as InvestingPro data shows revenue declined by 74% in the last twelve months. Despite this setback, the analyst remains positive about Vir’s prospects due to its ongoing work in other areas. The company’s chronic hepatitis delta virus (CHD) treatment is now seen as the main value driver, with the ECLIPSE 1 Phase 3 trial currently enrolling participants and the ECLIPSE 2 trial expected to start soon.
Additionally, updated data from the Phase 2 SOLSTICE trial indicated an 80% suppression of HDV RNA at Week 60, alongside favorable tolerability. Given the urgent need for treatment in this area, along with the potential for rare disease pricing, the analyst believes that CHD could offer significant upside to Vir’s current stock price.
Furthermore, Vir’s oncology pipeline is showing promise, with T-cell engager (TCE) programs VIR-5818 and VIR-5500 demonstrating early efficacy and safety in solid tumors. VIR-5525 is also on track to enter clinical development in the second quarter of 2025.
The analyst also highlighted Vir’s financial position, noting that the company has approximately $1.02 billion in cash, which should provide a runway into mid-2027. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 6.79 and minimal debt-to-equity ratio of 0.09. With full ownership of its key assets and upcoming catalysts in both CHD and oncology, Vir is considered to be entering a more focused and potentially more investable phase of its lifecycle. InvestingPro subscribers have access to 12 additional key insights and comprehensive financial metrics that can help evaluate the company’s investment potential.
In other recent news, Vir Biotechnology Inc . reported its first-quarter 2025 financial results, which highlighted a significant shortfall in revenue and a minor miss in earnings per share (EPS) forecasts. The company’s EPS was recorded at -$0.88, slightly missing the forecast of -$0.87, while revenue came in at $3.03 million, considerably below the expected $13.65 million. These results have raised concerns about Vir Biotech’s revenue-generating capabilities, despite the company’s continued focus on its Hepatitis Delta and oncology programs. Additionally, the company experienced increased research and development expenses, which rose to $118.6 million from $100.1 million in the previous year, reflecting its ongoing commitment to its core programs. The net loss for the quarter was $121 million, a significant increase from the $65.3 million loss in the same quarter last year. In terms of strategic developments, Vir Biotech remains focused on advancing its ECLIPSE Phase 3 trials for its Hepatitis Delta program and continues to explore potential partnerships for its preclinical programs. The company also announced an agreement with Alnylam, which opted not to participate in a profit-sharing arrangement for Elapsiran, leading to a continued milestone and royalty-based structure. These recent developments underscore Vir Biotech’s strategic focus and ongoing challenges in meeting revenue expectations.
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