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Vir Biotechnology, Inc. (VIR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $12.374M, down year over year versus $16.787M, with EPS of $(0.76) improving from $(0.86); sequential revenue rose sharply from Q3’s $2.380M as collaboration and contract revenue increased .
  • Operating discipline drove year-over-year reductions in R&D ($106.083M vs $109.089M) and SG&A ($26.701M vs $41.217M) despite portfolio expansion via Sanofi’s PRO-XTEN platform; net loss narrowed to $(104.589)K from $(115.973)K .
  • 2025 financial guidance: cash runway into mid-2027, supported by $1.10B cash, cash equivalents and investments at year-end, with Q4 cash burn of ~$90.6M and FY decline of ~$532.3M largely reflecting Sanofi transaction impacts .
  • Catalysts: Phase 3 ECLIPSE (CHD) FPI targeted H1 2025; additional Phase 1 dose-escalation data for HER2 (VIR-5818) and PSMA (VIR-5500), and Phase 1 start for EGFR (VIR-5525) in H1 2025; management emphasized strong early oncology signals and regulatory momentum in hepatitis programs .

What Went Well and What Went Wrong

What Went Well

  • Early oncology efficacy and safety: VIR-5818 showed tumor shrinkage in 50% (10/20) at ≥400 µg/kg with 33% confirmed partial responses in HER2+ CRC; VIR-5500 achieved PSA declines in 100% (12/12) mCRPC patients (58% PSA50), with no high-grade CRS and no prophylactic steroids needed .
  • Regulatory momentum in CHD: Combination tobevibart + elebsiran received FDA Breakthrough and Fast Track, plus EMA PRIME/Orphan; Phase 3 ECLIPSE advancing to FPI in H1 2025 .
  • Cost discipline: 28% YoY reduction in operating expense excluding Sanofi upfront; SG&A down to $26.7M in Q4 (vs $41.2M); FY R&D down despite $102.8M Sanofi upfront recognized as in-process R&D .

Management quotes:

  • “2024 was a year of transformation… focusing our resources on our most promising programs…” — CEO Marianne De Backer .
  • “We enter 2025 with… $1.10 billion… and a cash runway into mid-2027.” — CFO Jason O’Byrne .

What Went Wrong

  • Revenue pressure YoY: Q4 revenue declined to $12.374M from $16.787M primarily due to lower grant revenue (BARDA, Gates), and lower collaboration revenue for FY driven by GSK profit-share releases, partially offset by deferred revenue recognition .
  • Interest income down: Other income for Q4 fell to $12.475M from $18.259M on lower interest income, modestly offset by smaller equity investment losses .
  • CHB program dependency: Advancement contingent on securing a global partner ex-China; company will proceed only with a development/commercialization partner, increasing execution risk/timing uncertainty .

Financial Results

Quarterly P&L and Cash Trend

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Thousands)3,075 2,380 12,374
Collaboration Revenue ($USD Thousands)55 (1,102) 10,413
Contract Revenue ($USD Thousands)886 1,391 865
Grant Revenue ($USD Thousands)2,134 2,091 1,096
Cost of Revenue ($USD Thousands)52 50 684
R&D Expense ($USD Thousands)105,113 195,178 106,083
SG&A Expense ($USD Thousands)30,265 25,744 26,701
Restructuring & Impairment ($USD Thousands)26,275 12,712 (3,944)
Total Operating Expenses ($USD Thousands)161,705 233,684 129,524
Other Income ($USD Thousands)18,740 17,764 12,475
Net Loss ($USD Thousands)(138,378) (213,717) (104,589)
EPS ($USD)$(1.02) $(1.56) $(0.76)
Cash, Cash Equivalents & Investments (Quarter-End) ($USD Millions)$1,433.7 ~$1,190.0 ~$1,100.0

Year-over-Year (Q4 2024 vs Q4 2023)

MetricQ4 2023Q4 2024
Total Revenues ($USD Thousands)16,787 12,374
R&D Expense ($USD Thousands)109,089 106,083
SG&A Expense ($USD Thousands)41,217 26,701
Other Income ($USD Thousands)18,259 12,475
Net Loss ($USD Thousands)(115,973) (104,589)
EPS ($USD)$(0.86) $(0.76)

Commentary on Drivers

  • Sequential revenue growth to Q4 was driven by collaboration and contract revenue, while YoY declines reflect lower grant revenue and changes in GSK-related collaboration accounting (profit-sharing release and deferred revenue recognition mechanics) .
  • Operating expenses fell YoY on personnel and program deprioritizations; FY R&D still reflects $102.8M Sanofi upfront classified as in-process R&D .
  • Cash declined ~$90.6M in Q4 and ~$532.3M in FY24, including Sanofi upfront and $75M escrowed milestone reclassified to restricted cash tied to VIR-5525 first-in-human by 2026 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
GAAP Operating Expense RangeFY 2024$580–$610M $660–$680M (incl. $103M Sanofi upfront) Raised (reflecting Sanofi)
Cash Runway2025+N/AFunded into mid-2027 New disclosure
Workforce Savings2025~$50M annual starting 2025 N/A in Q4 updatePrior plan maintained

Earnings Call Themes & Trends

TopicQ2 2024 (Prev Mentions)Q3 2024 (Prev Mentions)Q4 2024 (Current Period)Trend
CHD (ECLIPSE)Fast Track; SOLSTICE prelim 12/24-week data; IND cleared Preparing pivotal path; more data at AASLD Phase 3 ECLIPSE FPI targeted H1 2025; deep TND responses; strong regulatory designations Advancing to registrational
CHB (MARCH-B)48-week EOT data expected Q4; functional cure data H1 2025 Late-breaking AASLD EOT and plan for H1 2025 functional cure Functional cure (24 weeks off treatment) expected Q2 2025; go/no-go thresholds 30% triplet/20% doublet; partner-dependent Awaiting key data; partner gating
Oncology PRO-XTEN (HER2/PSMA/EGFR)Sanofi license; program intake planned Q1 2025 Initial data planned Q1 2025 Early efficacy and safety signals for HER2 and PSMA; EGFR Phase 1 start H1 2025 Platform validation, dose escalation
Capital Allocation & CostRestructuring; lowered OpEx guide; workforce reductions Updated OpEx guide up with Sanofi upfront; continued savings Cash runway to mid-2027; disciplined deployment Improved runway, focused spend
AI/TechnologyNoted platform use —dAIsY AI engine to design next-gen TCEs; antibody discovery synergy Building tech differentiation
PartneringSeeking partners for phased-out programs —CHB partner prerequisite; Alnylam option financial-only, runway assumes opt-out short term Strategic partnering in focus

Management Commentary

  • CEO prepared remarks: “We are poised for significant advancement with the initiation of our Phase 3 registrational program in chronic hepatitis delta and further clinical progression of our dual-masked T-cell engagers in solid tumors.” — Marianne De Backer .
  • CMO on CHD efficacy: “At week 60, 80% achieved target not detected levels… unprecedented levels of viral suppression.” — Mark Eisner .
  • CMO on HER2: “33% confirmed partial response in colorectal cancer at ≥400 µg/kg… efficacy in MSS tumors resistant to immunotherapies.” — Mark Eisner .
  • CFO on cost discipline: “R&D expenses… $507M vs $580M… despite ~$103M Sanofi transaction expenses… net loss improved to $522M.” — Jason O’Byrne .

Q&A Highlights

  • PRO-XTEN cleavage efficacy: Dual masks with protease linkers efficiently cleaved in tumor microenvironments; clinical activity with minimal CRS supports tumor-specific activation; ALTUVIIIO cited as clinical validation of XTEN masking .
  • ECLIPSE initiation/enrollment: Team targeting H1 2025 FPI; confident in efficient recruitment given unmet need and compelling SOLSTICE data .
  • EGFR Phase 1 design: First-in-human basket with patients exhausting standard of care; enrich for EGFR-relevant tumors (NSCLC, H&N, pancreas, CRC); weekly and Q3W dosing considered .
  • CHB go/no-go: Functional cure thresholds set at 30% (triplet) and 20% (doublet) based on KOL input; program to advance only with a partner .
  • Dose response concerns (PSMA): Early-stage dose escalation; expect deeper and more durable responses at higher doses; HER2 case example showed deepening response with dose increase .
  • Alnylam arrangement: Financial-only; option to profit-share or take milestones/royalties; runway assumes short-term opt-out; either path compatible with future CHB partner .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue and EPS was unavailable at time of analysis due to provider request limits; therefore, explicit beat/miss vs estimates cannot be determined here. Values would normally be retrieved from S&P Global; please refresh to incorporate consensus in trading models.*

Key Takeaways for Investors

  • CHD is approaching a pivotal Phase 3 start with strong Phase 2 suppression data and multiple expedited designations, positioning the program as a near-term registrational asset .
  • Early oncology signals across HER2 and PSMA with favorable safety and no prophylactic steroids suggest PRO-XTEN may expand the therapeutic index, supporting higher, less frequent dosing and combination strategies (e.g., pembro) .
  • Fiscal discipline is intact: YoY OpEx reductions and narrowed net loss despite portfolio expansion; runway into mid-2027 provides flexibility to reach clinical inflection points without near-term financing .
  • CHB remains a swing factor: functional cure data in Q2 2025 and partnering are prerequisites; outcomes and deal structure will materially affect OpEx trajectory and valuation .
  • Near-term catalysts: ECLIPSE FPI (H1 2025), additional HER2/PSMA dose-escalation updates, EGFR Phase 1 initiation—each could drive sentiment and re-rate platform value .
  • Revenue remains modest and variable (grants/collaboration), with YoY declines tied to grants and collaboration accounting; stock likely trades on clinical/regulatory milestones rather than near-term P&L .
  • Watch Alnylam option and CHB partnership dynamics; either could improve cash profile versus current runway assumptions, providing upside to capital plan .

Footnote: *S&P Global consensus data was unavailable at the time of drafting due to provider limits; please update with the latest consensus before trading decisions.