As part of a major reorganization, Vir Biotechnology has discontinued the bulk of its virology work and pivoted to cancer in an exclusive licensing deal with Sanofi.
Vir Biotechnology announced a strategic overhaul on Thursday that includes a major shift in its research and development priorities as well as sweeping structural changes.
As part of its second-quarter business results, Vir revealed that it will no longer be continuing its work in COVID-19 and influenza, while pulling the plug on its T-cell-based viral vector platform. Instead, the biotech will restrict its virology business to its hepatitis B and D programs, allowing it to focus only on the “highest near-term value opportunities.”
Vir on Thursday also entered into a worldwide licensing deal with Sanofi, which marks its pivot toward cancer. Under the agreement, the biotech will pay Sanofi an undisclosed upfront amount, as well as promise future development, regulatory and commercial net sales-based milestones. Sanofi will also be entitled to tiered royalties on net worldwide sales of any product that reaches the market.
In return, Vir’s investment will grant it exclusive licenses to three investigational T-cell engagers. The first, dubbed SAR446309, is a dual-masked HER2xCD3 molecule that is currently in Phase I development for metastatic, treatment-resistant HER2-positive tumors, such as breast and colorectal cancers. The second asset is SAR446329 is a dual-masked PSMAxCD3 candidate in early-stage assessments for metastatic castration-resistant prostate cancer.
The third asset SAR446368 is also a dual-masked T-cell engager targeting the EGFR and CD3 antigens. The asset is set to enter a Phase I study in the first quarter of 2025 for various EGFR-positive cancers.
Sanofi acquired the three molecules when it bought Amunix Pharmaceuticals in December 2021 for $1 billion upfront. However, the pharma ultimately decided to divest Amunix—along with its assets and 100 employees—in April 2024, as part of its own restructuring effort.
Under Vir’s strategic overhaul, the biotech will lay off 25% of its workforce, eliminating approximately 140 roles across its operations. Meanwhile, it will be bringing on some “key employees with extensive scientific and development expertise” in T-cell engagers from Sanofi, as part of its agreement.
Vir now expects to close out the year with around 435 employees, which is some 200 employees fewer from its peak headcount in mid-2023.
As a result of its realignment initiative, Vir expects to book around $50 million in annual workforce cost savings starting in 2025, and another $50 million in savings related to the phasing out of specific programs. Restructuring initiatives will cost Vir around $11 million to $13 million, primarily due to severance payments.
In the second quarter of 2024, Vir recorded $3.1 million in revenue, down from its $3.8 million revenue during the same period the prior year. As of June 30, 2024, Vir had $1.43 billion in cash, cash equivalents and investments.
