Vir Biotechnology delivered a massive Q4 2025 earnings beat, reporting revenue of $64.1 million (vs. $1.4M consensus) driven by a $64.3M Norgine license payment, and EPS of -$0.31 (vs. -$0.54 expected). The company simultaneously announced a landmark $1.7 billion collaboration with Astellas for VIR-5500. Shares surged approximately 30.6% on February 24, trading near $9.71.
About Vir Biotechnology
Vir Biotechnology, Inc. (Nasdaq: VIR) is a clinical-stage biopharmaceutical company headquartered in San Francisco, California. Incorporated in 2016, the company focuses on discovering and developing therapeutic products for serious infectious diseases and, increasingly, oncology. Vir’s pipeline is anchored by its proprietary PRO-XTEN® platform, a dual-masking technology designed to improve the therapeutic index of T-cell engagers (TCEs) by keeping them inactive until they reach the tumor microenvironment.
As of February 24, 2026, Vir carries a market capitalization of approximately $1.35 billion, with shares trading near $9.71 — up sharply from a 52-week low of $4.16. The stock does not pay a dividend and trades at a negative P/E ratio given its pre-revenue, clinical-stage status (trailing EPS of -$3.62). Key pipeline assets include VIR-5500 (PSMA-targeting TCE for prostate cancer, now partnered with Astellas), the ECLIPSE Phase 3 program for hepatitis delta virus (HDV), and additional masked TCE candidates targeting HER2, EGFR, and other solid tumor antigens.
Top Financial Highlights
Fourth Quarter 2025
- Total Revenue: $64.1 million, up from $12.4 million in Q4 2024 (+418% YoY), driven primarily by $64.3 million in Norgine license revenue.
- GAAP Net Loss: $(42.9) million, or $(0.31) per share, compared to $(104.6) million, or $(0.76) per share, in Q4 2024.
- R&D Expenses: $88.3 million, down from $106.1 million in Q4 2024 (-16.7%).
- SG&A Expenses: $23.6 million, down from $26.7 million in Q4 2024 (-11.6%).
- Total Operating Expenses: $112.0 million, down from $129.5 million in Q4 2024 (-13.5%).
- Operating Loss: $(47.9) million, improved from $(117.2) million in Q4 2024.
- Operating Cash Flow: $(25.9) million (significant improvement from -$87.6M in Q4 2024).
Full Year 2025
- Total Revenue: $68.6 million, down from $74.2 million in 2024 (-7.6%), as lower GSK collaboration and grant revenues offset the Norgine license recognition.
- GAAP Net Loss: $(438.0) million, or $(3.16) per share, improved from $(522.0) million, or $(3.83) per share, in 2024 — a 16% reduction in net loss.
- R&D Expenses (FY): $456.0 million, down 10% from $506.5 million in 2024.
- SG&A Expenses (FY): $92.1 million, down 23% from $119.0 million in 2024.
- Cash, Cash Equivalents & Investments: $781.6 million as of December 31, 2025.
- Full-Year Cash Burn: Approximately $313.8 million decline in cash and investments.
Astellas Collaboration
- Upfront & Near-Term Payments: $335 million ($240M cash + $75M equity at 50% premium + $20M near-term milestone).
- Total Potential Milestones: Up to $1.37 billion in additional development, regulatory, and commercial milestones.
- Total Deal Value: Up to $1.7 billion combined.
- Cost Split: 40% Vir / 60% Astellas (global); 50/50 U.S. profits and losses.
- Cash Runway: Extended into Q2 2028 including Norgine and Astellas deal effects.
Beat or Miss?
Vir Biotechnology delivered one of the most dramatic earnings surprises of the quarter, driven entirely by the timing of the Norgine license revenue recognition in Q4. The EPS beat was also substantial at +42.6%.
| Metric | Reported | Consensus Estimate | Surprise |
| Q4 Revenue | $64.1M | ~$1.4M | +4,412% beat |
| Q4 EPS | ($0.31) | ($0.54) | +42.6% beat |
| FY2025 Revenue | $68.6M | ~$19.2M | +257% beat |
| FY2025 EPS | ($3.16) | ($3.38) | +6.5% beat |
| Cash Position (Year-End) | $781.6M | N/A | Strong; runway to Q2 2028 |
The massive revenue surprise reflects that analyst consensus had not fully incorporated the $64.3 million Norgine license payment received in December 2025. Excluding this one-time recognition, Q4 revenue would have been near zero, consistent with the company’s clinical-stage profile.
What Leadership Is Saying?
“Astellas is the perfect partner for the VIR-5500 initiative, given its proven success in advancing therapies throughout the treatment spectrum, establishing blockbuster franchises, and delivering value to patients via strategic development collaborations with other biotech firms. This partnership will facilitate the expedited progress of VIR-5500, potentially benefiting a greater number of individuals with prostate cancer. We believe this collaboration showcases our PRO-XTEN® platform, which has vast potential across various solid tumor indications.” – CEO Dr. Marianne De Backer
“Our net loss for 2025 was $438 million, compared to $522 million in 2024. We started 2026 with a strong financial position of approximately $782 million in cash, cash equivalents and investments, not including the upfront cash and equity we will receive through the Astellas collaboration. Based on our current operating plan and including the net effects of the Norgine and Astellas agreements, we anticipate cash runway extending into the second quarter of 2028, enabling multiple value-creating milestones across our pipeline.” CFO
Historical Performance
Q4 2025 vs. Q4 2024a
The Q4 2025 results reflect a dramatic improvement driven by the Norgine license revenue and continued cost discipline from prior restructuring initiatives. Operating expenses fell 13.5% YoY while revenue surged on the one-time license recognition.
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | $64.1M | $12.4M | 418.00% |
| Net Loss | $(42.9)M | $(104.6)M | +59.0% improvement |
| EPS (Diluted) | ($0.31) | ($0.76) | +59.2% improvement |
| R&D Expenses | $88.3M | $106.1M | -16.7% |
| SG&A Expenses | $23.6M | $26.7M | -11.6% |
| Total Operating Expenses | $112.0M | $129.5M | -13.5% |
| Operating Loss | $(47.9)M | $(117.2)M | +59.1% improvement |
| Operating Cash Flow | $(25.9)M | $(87.6)M | +70.4% improvement |
Full Year Comparison
| Category | FY 2025 | FY 2024 | Change (%) |
| Total Revenue | $68.6M | $74.2M | -7.60% |
| Net Loss | $(438.0)M | $(522.0)M | +16.1% improvement |
| EPS (Diluted) | ($3.16) | ($3.83) | +17.5% improvement |
| R&D Expenses | $456.0M | $506.5M | -10.00% |
| SG&A Expenses | $92.1M | $119.0M | -22.60% |
| Cash & Investments (Year-End) | $781.6M | $1,095.4M | -28.6% |
Competitor Landscape
Vir Biotechnology operates in a distinct competitive niche — clinical-stage masked T-cell engagers for solid tumors — that differs substantially from large-cap biopharma peers. However, a comparison with peers in the broader biotech/biopharma space provides context on relative scale and financial positioning.
| Metric | Vir Biotechnology (VIR) | Moderna (MRNA) | Gilead Sciences (GILD) | Regeneron (REGN) |
| Market Cap | ~$1.35B | ~$19.8B | ~$182.8B | ~$81.6B |
| Stage | Clinical (Phase 1/3) | Commercial + pipeline | Commercial | Commercial |
| Q4 2025 Revenue | $64.1M | TBD | TBD | TBD |
| FY2025 Net Loss/Income | $(438)M loss | Deep losses expected | Profitable | Profitable |
| Cash Position | $781.6M | ~$9B+ | ~$8B+ | ~$14B+ |
| P/E Ratio | Negative (-2.68x) | Negative (-6.98x) | 18.1x | 18.9x |
| Dividend Yield | 0% | 0% | ~3.0% | 0% |
| Key Catalyst | Astellas VIR-5500 deal | Pipeline/mRNA platform | Lenacapavir HIV | Dupixent/Libtayo |
Within the TCE competitive landscape specifically, Vir’s PRO-XTEN® dual-masking approach is designed to differentiate against unmasked TCEs from competitors like Amgen (BiTE platform) and Roche/Genentech, which often face dose-limiting cytokine release syndrome (CRS) toxicity. The Astellas validation at a $1.7B total deal value provides significant external endorsement of Vir’s approach.
How the Market Reacted?
Shares of Vir Biotechnology (Nasdaq: VIR) surged approximately 30.6% on February 24, 2026, trading near $9.71 compared to the prior close of $7.43 — one of the largest single-day moves in the biotech sector. The rally was driven by the dual catalyst of the Q4 earnings beat and the transformative Astellas collaboration, which provides $335 million in near-term capital and validates the VIR-5500 asset at a $1.7 billion total deal value.
After-hours trading on the initial release date (February 23) had already shown a modest 0.66% uptick to $7.61, but the full-day session on February 24 saw explosive buying as investors digested the deal economics and extended cash runway through Q2 2028. Analyst sentiment is expected to shift notably, as the Astellas deal de-risks Vir’s near-term cash concerns and provides external validation for the PRO-XTEN® platform — though consensus still does not expect profitability in 2026, with forward EPS estimates of -$3.16 for FY2026.
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