Vir Biotechnology, Inc.

 

VIR Details
 
VIR Updates on Clinical Trial: Based in San Francisco, United States, Vir Biotechnology, Inc. (NASDAQ: VIR) is a clinical-stage immunology company, which is focused on merging immunologic visions to treat and prevent severe infectious diseases. The company’s expansion pipeline comprises of a product which aims to treat the influenza A, hepatitis B virus, human immunodeficiency virus and tuberculosis. On 15 April 2020, the company announced about its ongoing Phase 2 trial data in patients along with results from the Phase 1 trial in healthy volunteers of VIR-2218, for the treatment of chronic hepatitis B virus (HBV) infection. Further, VIR predicted to commence dosing patients in the 2HFY20, by combining trial of VIR-2218 with a shortened course of pegylated interferon.
 
Other Recent Updates: In another update, the company stated that it has entered into an agreement with Samsung Biologics. According to the deal, manufacturing services for Vir's SARS-CoV-2 monoclonal antibody (mAb) system will be carried out by Samsung Biologics on an enormous scale. The company also announced that it has collaborated with GlaxoSmithKline plc and Alnylam Pharmaceuticals, Inc. to research and develop solutions for coronaviruses, comprising SARS-CoV-2, the virus that causes COVID-19. It is worth noting that the company also collaborated with bigwig Biogen Inc. to accelerate its efforts to develop treatments for COVID-19. 
 
4QFY19 Key Highlights for the Period Ended 31 December 2019: During the quarter, the company reported a net loss of $0.71 per share, as compared to the net loss of $3.05 per share in the year-ago period. The company’s revenues for the quarter stood at $1 million, which decreased from $3.1 million reported in 4QFY18. The decrease in revenues was primarily due to a decline in grant revenue. Research and development expenses were $52.9 million, as compared to $22.0 million reported in the year-ago period, owing to ongoing clinical expenses relating to VIR-2218 and VIR-2482, along with collaboration expenses. General and administrative expenses stood at $11.8 million, up from $7.9 million reported in the year-ago period.
 

Key Financial Highlights (Source: Company Reports)
 
Balance Sheet Details: As of 31^st December 2019, the company had cash, cash equivalents, and investments of ~$407.7 million. For the year ended December 31, 2019, net cash used in operating activities stood at $138.6 million. Based on existing parameters, the company believes to be able to fund its operating plan through at least the end of 2021.
 
Stock Recommendation: The stock of VIR closed at $32.61 with a market capitalization of $3.6 billion. The stock made a 52-week low and high of $11.65 and $75.00 and is currently trading at the lower band of the range. The stock of the company has run up 63.46% in the last three months.Vir Biotechnology has witnessed a substantial rise in its share price in the last couple of months, due to its ongoing efforts associated with the development of anti-COVID-19 medicines.On the valuation front, the stock is trading at a P/B multiple of 8.4x as compared to the industry mean of 5.5x on TTM (Trailing Twelve Months) basis. The stock has an EV/Sales multiple of 368.2x as compared to the industry mean of 300.7x on TTM (Trailing Twelve Months) basis. Considering the latest results, valuation on TTM basis, and current trading levels, we have a watch stance on the stock at the closing price of $32.61, up 4.69% as on 24 April 2020.
 
 
VIR Daily Technical Chart (Source: Thomson Reuters)

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