Vir Biotechnology, Astellas in $335 Million Licensing Deal for Prostate Cancer Treatment

By Katherine Hamilton

Vir Biotechnology and Astellas entered a license agreement to co-develop and commercialize Vir's prostate cancer treatment.

The agreement is for VIR-5500, a dual-masked T-cell engager targeting prostate-specific membrane antigen that is in Phase 1 development.

The two companies will share expenses and revenue. Vir will grant Astellas a license to develop, manufacture and commercialize VIR-5500.

In return, Vir will receive $335 million in upfront and near-term milestone payments, including $240 million in cash and $75 million in equity payments.

A $20 million milestone payment will be made upon completion of manufacturing process technology transfer, which is expected to happen in the second or third quarter of 2027.

Alongside the agreement, Astellas has agreed to buy about 7.2 million shares of Vir for $75 million, or $10.36 a share. One year after the anticipated closing of the stock purchase agreement, Astellas will have a right to require Vir to register the resale of the shares it bought.

Vir will also be eligible for up to $1.37 billion in future milestone payments, along with tiered, double-digit royalties on sales outside the U.S.

Vir will cover 40% of global development costs, while Astellas will cover 60%. U.S. costs will be split equally.

Astellas will obtain exclusive rights to commercialize VIR-5500 outside the U.S. and will be responsible for commercialization costs, while Vir will have the option to co-promote the treatment in the U.S. and share profits.

Under Vir's licensing agreement with Sanofi, the company will share a portion of certain collaboration proceeds received from Astellas with Sanofi.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 23, 2026 18:17 ET (23:17 GMT)