Gilead Sciences and Vir Biotechnology have entered a collaboration and license agreement to discover and develop T-cell engager therapies for solid tumors. The deal could be worth up to $1.88 billion for Vir. Vir shares rose more than 10% in premarket trading after the announcement.
Vir will receive $90 million upfront. The payment includes $65 million in cash and a $25 million equity investment. Vir is also eligible for up to $1.74 billion in milestone payments, plus tiered royalties.
Vir will lead the initial discovery and engineering of three candidates using its proprietary masking technology. The technology is designed to activate therapies only at the tumor site, reducing toxicity. Gilead will hold exclusive rights to subsequent development and commercialization.