Vir Biotechnology Enters Collaboration with Gilead Sciences Aimed at Solid Tumors Worth up to $1.9 Billion

Ropes & Gray advised Vir Biotechnology in a collaboration and license agreement with Gilead Sciences to discover and engineer three novel next-generation dual-masked T-cell engager candidates targeting selected solid tumor-associated antigens in a deal worth up to $1.9 billion that was announced on October 14. T-cell engagers are designed to direct the immune system, particularly T-cells, to destroy cancer cells.

Through the collaboration, Vir is eligible to receive a total of $135 million in total upfront and near-term preclinical milestone payments, made up of a $65 million cash portion and a $25 million equity investment at a 30% premium, and up to $45 million in potential near-term preclinical milestones. In addition, Vir has the potential to receive up to $1.74 billion in further development, regulatory and commercial milestones, along with royalties on net sales.

Under the agreement, Vir will be responsible for discovery, design and optimization of the three T-cell engager candidates, applying its proprietary platform and masking technology. Gilead is granted an exclusive license to nominate and advance candidates through the collaboration and will be responsible for development, manufacturing and commercialization activities.

The Ropes & Gray team was led by life sciences licensing partner Abby Gregor and life sciences transactions counsel Joshua Talicska and included life sciences transactions partner Ray Grant.