Thanks to its newly announced COVID-19 antibody therapy candidates, Vir Biotechnology's (NASDAQ:VIR) stock is still up more than 10% from the beginning of May and more than 180% from the start of the year.On top of its recent gains, there's reason to believe that Vir is positioned perfectly for continued growth.
While the company has a long way to go before it reaches profitability, between its low-risk pipeline programs for COVID-19 and a demonstrated competency for preclinical drug development for infectious disease, Vir's future seems bright.
Image source: Getty Images.
Vir's preclinical COVID-19 projects include two antibody therapies that it claims could temporary prevention and the treatment of coronavirus infections. VIR-7832 is both a prophylactic and a therapeutic, whereas VIR-7831 is only a therapeutic.
Because they are antibody therapies, Vir's candidates would be more effective at helping sick patients get better by reducing their viral load than it would be at preventing infections like a traditional vaccine might. In a nutshell, both of Vir's antibody programs could help patients to fight COVID-19 immediately by neutralizing viral particles in their bloodstream after they get a dose of the therapy. Then, once the patient's symptoms subside, the antibodies would remain in their system for several days or weeks, protecting them from re-infection. This process is key to both of Vir's COVID-19 antibody programs, but there's a bit more to the story.
Vir suspects that VIR-7832 may also function as a T-cell vaccine, training the immune system to react to future infections. This would mean that patients could be administered the antibody even if they don't expect to get sick. If Vir's hunch is correct, VIR-7832 would provide longer-lasting immunity than VIR-7831, and it might be a contender for mass production as a prophylactic.
The company's approach is uncontroversial from a scientific perspective, given that neutralizing antibodies from COVID-19 survivors have already been shown to combat the disease in vitro by numerous independent research teams and similar therapies were successfully used to treat human patients with SARS. Similarly, Vir's approach is front-run by ongoing clinical trials testing the efficacy of antibodies from recovered COVID-19 patients on improving disease outcomes in people who are currently ill.
The average vaccine in development is estimated to have only a 6% chance of proceeding all the way to approval and the market, but Vir's antibody products may fare better because they are adapted from natural antibodies known to be effective and safe. There's no guarantee of Vir's efforts ending in blockbuster revenue, but in the highly risky world of biotech, the prospects of these two COVID-19 projects are extremely favorable even from a conservative perspective.
However, given that the antibodies would be copies of naturally ocurring antibodies, it's uncertain whether intellectual property protection would be sufficient to prevent a competitor from creating very similar products. For most biotech companies, this would be a dealbreaker, as it would effectively prevent the ability to recoup development costs with a period of exclusive production rights. But not for Vir. By bucking the traditional wisdom regarding exclusivity and drug development, Vir has a real chance of entering the market sooner than competitors at a time when demand for its product would be enormously high.
That isn't to say that Vir is an unambitious company because it is moving forward with safer programs. In contrast to its two antibody therapy programs, Vir's VIR-2703 program is riskier because it uses a scientific approach which hasn't been tested in humans for the purpose of infectious disease. Rather than acting to neutralize viral particles directly like an antibody might, VIR-2703 relies on small chunks of genetic information called silencing RNAs (siRNAs) which disrupt regions of the viral genome.
Counting on this program to succeed would be a mistake. Most large pharmaceutical companies gave up trying to develop siRNA therapies in the mid-2010s after nearly a decade of failures, and the only siRNA therapy approved by the FDA isn't for an infectious disease.
On the other hand, early favorable clinical results from VIR-2703 should not be interpreted as a reason to buy the company's stock. Stumbles stemming from a lack of a proof of concept in human patients further down the pipeline could easily erase any gains. Either way, Vir's drug development pipeline looks more like a risk-balanced portfolio than a selection of technological and scientific gambles like so many other biotechs.
If Vir brings one of its COVID-19 programs to market, it'll be one more addition to the company's impressive roster of therapies and prophylactics for viral diseases. Aside from its three unique COVID-19 programs, Vir's pipeline includes a handful of other projects intended to treat or prevent illnesses caused by hepatitis B, influenza, tuberculosis, and even HIV. Importantly, all but two of these pipeline projects are in the preclinical phase, so the company's clinical acumen is far from proven.
In terms of advanced programs, the closest Vir has to offer is its VIR-2218 therapy for hepatitis B, which it suspects may be curative for most patients. If Vir brings a curative therapy to market, the company may have trouble maintaining its revenue over the long term because a cure shrinks the pool of eligible patients. As the hepatitis B therapeutics market is only worth around $2.6 billion, it's possible that Vir's hepatitis B therapy would meet the same fate as the low-earning hepatitis C therapy produced by Gilead Sciences (NASDAQ:GILD)But, with 257 million people worldwide living with hepatitis B compared to only 71 million living with hepatitis C, it's less likely that Vir will experience the same difficulties. Importantly, Vir isn't letting Gilead's experience stop them from moving forward with a curative therapy candidate. Even if the long-term profitability of VIR-2218 is in jeopardy of being a victim of its own success, Vir is willing to take a chance rather than stick to a safer opportunity.
In summary, Vir's COVID-19 pipeline has two antibody programs that have a better than average chance of passing through clinical trials.Elsewhere, the company's technology platform appears formidable, but its clinical pipeline is still in its infancy, despite a bevy of compelling seedlings.
Given the level of public need for COVID-19 treatments and vaccines, it's likely that if Vir's COVID-19 programs look promising once they hit the clinic in the summer, they'll be expedited through clinical trials. This means that the company's minimal past experience in clinical operations and clinical development will be of little use, so it's likely to need to lean heavily on larger collaborators like Biogen, GlaxoSmithKline, and Alnylam Pharmaceuticals.
It's easy to envision a future where Vir gets acquired by one of these collaborators if its trials have positive outcomes. In the meantime, progress by Vir's major competitors like Novavax and behemoth vaccine producers like Merck is unlikely to diminish the company's upward trajectory, as competing products would be targeted at preventing COVID-19 rather than both treating and preventing it.
Image Source: YCharts
As the market grows to recognize Vir as a rising contender in the COVID-19 therapeutic market, public interest in the company will explode, to the benefit of its shareholders. I'd recommend buying Vir shares now, to maximize the benefit of successive boosts to the company's stock price as its COVID-19 candidates pass through each phase of clinical trials. Holding onto Vir for a few years will maximize the gains, but don't discount the probability of near-term gains either.
More here:
Vir Biotechnology Is Bucking The Biotech COVID-19 Trends, And Stands To Win - Motley Fool
- Biotechnology Research Among Science Returned to Earth - ISS National Lab - May 5th, 2024
- Program to prepare next generation of biotech experts receives renewed funding - The University of Rhode Island - May 5th, 2024
- Designing drugs with reversible activity - Nature.com - May 5th, 2024
- ScienceLIVE helps answer 'What the Heck is Biotech?' for career-minded adults - UMass Medical School - May 5th, 2024
- Boston Micro Fabrication Launches BMF Biotechnology Inc. to Advance Use of 3D BioChips in Pharmaceutical and ... - Morningstar - May 5th, 2024
- Time to leverage intellectual property to drive innovation in seed and biotechnology sectors: Experts - The Times of India - May 5th, 2024
- Vir Biotechnology to Participate in the BofA Securities Healthcare Conference 2024 - Business Wire - May 5th, 2024
- WuXi Biologics withdraws from 2024 BIO convention amid worsening geopolitical tensions - FiercePharma - May 5th, 2024
- Boston Micro Fabrication Launches BMF Biotechnology Inc. to Advance Use of 3D BioChips in Pharmaceutical and ... - Business Wire - May 5th, 2024
- U.S. Biotechnology Market Size to Increase USD 1.79 Trillion by 2033 - BioSpace - April 16th, 2024
- 6 biotechnology universities in the USA developing young talent - Labiotech.eu - April 16th, 2024
- Lee Hsien Loong presided over efforts to retool Singapore's export-driven economy by focusing on advanced ... - NBC Right Now - April 16th, 2024
- UNITY Biotechnology, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Business Updates - GlobeNewswire - April 16th, 2024
- Lee Hsien Loong presided over efforts to retool Singapore's export-driven economy by focusing on advanced ... - pdclarion.com - April 16th, 2024
- BIO's top lobbyist heads out the door - FiercePharma - April 16th, 2024
- BIO's top lobbyist exits, signaling reorganization - STAT - STAT - April 16th, 2024
- Biotech Rebound Could Boost This ETF - ETF Trends - April 16th, 2024
- US National Security, China and Biotechnology in 2024 - BioSpace - April 8th, 2024
- How to Invest in Biotechnology (Updated 2024) - Nasdaq - April 8th, 2024
- Self-pigmenting textiles grown from cellulose-producing bacteria with engineered tyrosinase expression - Nature.com - April 8th, 2024
- Genetically encoding colors and images into bioengineered microbial materials - Nature.com - April 8th, 2024
- Ambition and urgency: Biotechnology and Biomanufacturing in the EU - EURACTIV - April 8th, 2024
- Scientists create plastic-free vegan leather that dyes itself, grown from bacteria - Phys.org - April 8th, 2024
- For national security, the U.S. must maintain its biotech dominance - STAT - April 8th, 2024
- LLY, REGN, BHVN: Which Biotech Stock Offers the Most Upside? - Yahoo Finance - April 8th, 2024
- Is biotechnology a good career? Here are the pros and cons - Labiotech.eu - March 18th, 2024
- Saving Biology With Blue Biotechnology - The Maritime Executive - March 18th, 2024
- 30 Biggest Biotechnology Companies in the World - Yahoo Finance - March 18th, 2024
- WuXi out of biotech trade group, U.S. and China relations to blame - STAT - March 18th, 2024
- Can Biotechnology Save the Fashion Industry? - EARTH.ORG - March 18th, 2024
- Huber high-precision temperature control solutions for the pharmaceutical industry and biotechnology - Labmate Online - March 18th, 2024
- The twelve hottest biotech companies in the Boston area - Labiotech.eu - March 18th, 2024
- Vancouver readies for its position as a global pharma capital as B.C.'s biotech boom takes off - The Globe and Mail - March 10th, 2024
- Here's Why We're A Bit Worried About Unity Biotechnology's (NASDAQ:UBX) Cash Burn Situation - Simply Wall St - March 10th, 2024
- The Top 25 Biotechnology Companies of 2024 - The Healthcare Technology Report. - March 10th, 2024
- Near-cognate tRNAs increase the efficiency and precision of pseudouridine-mediated readthrough of premature ... - Nature.com - March 10th, 2024
- MAIA Biotechnology and Nationwide Children's Hospital Announce Presentation of THIO's Potency in Pediatric Brain ... - Business Wire - March 10th, 2024
- Global Pharmaceuticals and Biotechnology Distribution Deals Analysis Report and Directory 2024: Breakdown of ... - PR Newswire - March 10th, 2024
- Pharmaceuticals and Biotechnology Co-promotion and Co-marketing Partnering Trends Report 2024: Analysis of ... - PR Newswire - March 10th, 2024
- INTERNATIONAL BIOTECHNOLOGY TRUST has a healthy attitude towards paying investors - This is Money - March 10th, 2024
- Where Does Capricor Therapeutics Inc (CAPR) Stock Fall in the Biotechnology Field After It Has Risen 24.73% This Week? - InvestorsObserver - March 10th, 2024
- Biotechnology should be high on the agenda at the Munich Security Conference - The Hill - February 18th, 2024
- Boston is best in the world at biotech. Beijing wants to do it better - WBUR News - February 18th, 2024
- Multiomics Are The Next Step In Biotechnology - Securities.io - February 18th, 2024
- SPARKing academic technologies across the valley of death - Nature.com - February 18th, 2024
- Is Nurix Therapeutics Inc (NRIX) Stock at the Top of the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- Addressing the Threat to U.S. Biotechnology: Concerns Over Genetic Data Security - Medriva - February 18th, 2024
- Where Does SpringWorks Therapeutics Inc (SWTX) Stock Fall in the Biotechnology Field After It Has Gained 12.41% This Week? - InvestorsObserver - February 18th, 2024
- Should Biotechnology Stock Axsome Therapeutics Inc (AXSM) Be in Your Portfolio Wednesday? - InvestorsObserver - February 18th, 2024
- Where Does Candel Therapeutics Inc (CADL) Stock Fall in the Biotechnology Field After It Has Gained 22.38% This Week? - InvestorsObserver - February 18th, 2024
- Is Tempest Therapeutics Inc (TPST) a Leader in the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- Is Immunome Inc (IMNM) a Good Buy in the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- Is Larimar Therapeutics Inc (LRMR) a Leader in the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- US lawmakers, visiting Cambridge, warn of a rising Chinese threat to US biotech - The Boston Globe - February 18th, 2024
- Should Biotechnology Stock Viking Therapeutics Inc (VKTX) Be in Your Portfolio Monday? - InvestorsObserver - February 18th, 2024
- How the push to limit Chinese biotech could threaten U.S. edge - Axios - February 18th, 2024
- What is Biotechnology? Types and Applications - Iberdrola - January 25th, 2024
- BioAro Inc to Host Inaugural Longevity Innovation Forum in Dubai, UAE - Yahoo Finance - January 25th, 2024
- Is Akebia Therapeutics Inc (AKBA) a Bad Choice in Biotechnology Wednesday? - InvestorsObserver - January 25th, 2024
- Agricultural Biotechnology Market Projected to Reach USD 64.7 billion, with Advancing CAGR of 9.5% by 2031 ... - Yahoo Finance - January 25th, 2024
- Where Does Immunitybio Inc (IBRX) Stock Fall in the Biotechnology Field After It Is Lower By -9.32% This Week? - InvestorsObserver - January 25th, 2024
- Is Lyra Therapeutics Inc (LYRA) Stock at the Top of the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- ZWI Therapeutics Announces Closing of $10M Series A Financing - FinSMEs - January 25th, 2024
- Breaking Barriers: Tiamat Sciences Shatters Norms with All-Female Executive Team - Yahoo Finance - January 25th, 2024
- Can Sana Biotechnology Inc (SANA) Stock Rise to the Top of Healthcare Sector Monday? - InvestorsObserver - January 25th, 2024
- Is Cabaletta Bio Inc (CABA) a Leader in the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Should You Buy Sana Biotechnology Inc (SANA) Stock After it Has Fallen 15.41% in a Week? - InvestorsObserver - January 25th, 2024
- Why Investors and Media are Calling Biotech Showcase The Place to Be to Start the Year - Business Wire - January 25th, 2024
- Is IGC Pharma Inc (IGC) Stock at the Top of the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Is Summit Therapeutics Inc (SMMT) a Leader in the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Biotech Stocks: The Top 5 To Watch As Shares Trend Down - Investor's Business Daily - January 25th, 2024
- Where Does Tscan Therapeutics Inc (TCRX) Stock Fall in the Biotechnology Field After It Is Lower By -9.81% This Week? - InvestorsObserver - January 25th, 2024
- HRMY: Are These 3 Biotech Stocks Worth Buying? - StockNews.com - January 25th, 2024
- Global Preparative Chromatography Market is projected to reach US$ 2,139.4 Million by 2034 Amid Growing ... - Yahoo Finance - January 25th, 2024
- Is Immunome Inc (IMNM) a Leader in the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Should Biotechnology Stock Mink Therapeutics Inc (INKT) Be in Your Portfolio Monday? - InvestorsObserver - May 9th, 2023
- Where Does Ambrx Biopharma Inc - ADR (AMAM) Stock Fall in the Biotechnology Field After It Has Risen 22.18% This Week? - InvestorsObserver - May 9th, 2023
- Should Biotechnology Stock Dermata Therapeutics Inc (DRMA) Be in Your Portfolio Thursday? - InvestorsObserver - May 9th, 2023
- Should Biotechnology Stock Tempest Therapeutics Inc (TPST) Be in Your Portfolio Wednesday? - InvestorsObserver - May 9th, 2023
- Biotechnology - Applications of biotechnology | Britannica - May 1st, 2023