Raymond James has begun coverage on Vir Biotechnology (VIR, Financial), assigning it an Outperform rating. The firm has set a price target of $12 for the stock, indicating a positive outlook on its future performance. This rating suggests confidence in Vir Biotechnology's potential growth and prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Vir Biotechnology Inc (VIR, Financial) is $18.43 with a high estimate of $31.00 and a low estimate of $12.00. The average target implies an upside of 210.77% from the current price of $5.93. More detailed estimate data can be found on the Vir Biotechnology Inc (VIR) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Vir Biotechnology Inc's (VIR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vir Biotechnology Inc (VIR, Financial) in one year is $1.19, suggesting a downside of 79.93% from the current price of $5.93. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vir Biotechnology Inc (VIR) Summary page.
VIR Key Business Developments
Release Date: May 07, 2025
- R&D Expenses: $118.6 million for Q1 2025, including $7 million of noncash stock-based compensation.
- SG&A Expenses: $23.9 million for Q1 2025, including $7.1 million of stock-based compensation.
- Net Loss: $121 million for Q1 2025, compared to $65.3 million for Q1 2024.
- Revenue: Approximately $3 million for Q1 2025, compared to $52 million for Q1 2024.
- Cash Position: Approximately $1 billion in cash, cash equivalents, and investments at the end of Q1 2025.
- Cash Runway: Projected to extend into mid-2027.
- Net Cash Consumed: $75.6 million in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vir Biotechnology Inc (VIR, Financial) successfully initiated the ECLIPSE Phase III registrational program for hepatitis delta virus, marking a significant milestone.
- The company has a strong cash position with approximately $1 billion in cash, cash equivalents, and investments, providing a cash runway extending into mid-2027.
- Vir Biotechnology Inc (VIR) has received breakthrough therapy and Fast Track designations in the U.S., and prime and orphan drug designations in the EU, potentially accelerating development timelines.
- The PRO-XTEN platform shows promise with a favorable safety profile and potential advantages in dosing flexibility for oncology treatments.
- The company is advancing multiple programs, including a Phase I study for VIR-5525, targeting high-value indications such as non-small cell lung cancer and colorectal cancer.
Negative Points
- Net loss for the first quarter of 2025 was $121 million, significantly higher than the $65.3 million net loss in the same period in 2024.
- Revenue for the first quarter of 2025 was approximately $3 million, a sharp decline from $52 million in the first quarter of 2024.
- Alnylam elected not to opt into the profit-sharing arrangement for elebsiran, impacting potential future development and regulatory milestones.
- The company faces challenges in the biotechnology sector's market environment, requiring a disciplined approach to capital allocation.
- Enrollment and completion timelines for the ECLIPSE trials are aggressive, with a study estimated completion date by the end of 2026, posing potential risks to meeting these targets.
