Vir Biotechnology Enters Global Collaboration with Astellas Pharma for Prostate Cancer Therapy for up to $1.7 Billion

Ropes & Gray advised Vir Biotechnology in a global strategic collaboration with Astellas Pharma to advance VIR-5500, an investigational dual-masked T-cell engager targeting both the prostate-specific membrane antigen and CD3 proteins in development for advanced, metastatic prostate cancer. The transaction was announced on February 23.

Under the agreement, Vir would receive $335 million in upfront and near-term payments. Development costs will be shared globally, with Astellas responsible for 60 percent and Vir responsible for 40 percent. In the U.S., Vir will have the option to co-promote VIR-5500 with Astellas, and profit/loss will be shared equally. Vir is also eligible to receive up to $1.37 billion in development, regulatory, and sales milestones, as well as tiered royalties on ex-U.S. net sales. Under Vir’s licensing agreement with Sanofi, a portion of certain collaboration proceeds will be shared with Sanofi. 

The Ropes & Gray team was led by IP transactions partner Megan Baca and IP transactions associate Parker Elliot and included life sciences transactions partner Ray Grant, antitrust partner Mike McFalls, private equity partner Deidre Johnson, IP transactions counsel Joshua Talicska, litigation & enforcement counsel Rupert Phillips and data, privacy & cybersecurity counsel Edward Machin.