Vir Biotechnology has signed a collaboration and licensing agreement with Gilead Sciences to discover and develop three novel T-cell engager (TCE) candidates targeting solid tumors. The partnership aims to advance next-generation cancer immunotherapies for patients with significant unmet medical needs.
Under the agreement, Vir Biotechnology will use its expertise in TCE discovery and protein engineering to discover, design and optimize three development candidates. The candidates will use Vir’s PRO-XTEN® dual-masking technology and target selected antigens associated with solid tumors.
Vir will also apply its proprietary dAIsY™ platform, which combines data, artificial intelligence, structural insights and antibody engineering, to optimize the potential therapies. The company aims to develop T-cell engagers that deliver potent anti-tumor activity while offering a wider therapeutic index, potentially helping to improve the balance between efficacy and safety.
Gilead will receive an exclusive license to nominate and advance candidates generated through the collaboration. The company will be responsible for their subsequent development, manufacturing and commercialization.
Marianne De Backer, president and chief executive officer of Vir Biotechnology, said the partnership provides an opportunity to develop multiple differentiated candidates for solid tumors that remain difficult to treat. She added that the agreement supports the expansion of Vir’s scientific capabilities while the company continues to advance its own clinical oncology portfolio.
Flavius Martin, executive vice president of research at Gilead Sciences, said the collaboration will combine Gilead’s oncology development experience and focus on next-generation immunotherapies with Vir’s discovery and engineering capabilities. Both companies aim to develop innovative treatments that could benefit cancer patients.
The financial terms include up to $135 million in upfront and near-term preclinical milestone payments for Vir Biotechnology. This comprises $90 million in upfront consideration, including $65 million in cash and a $25 million equity investment at a 30% premium, along with up to $45 million in potential near-term preclinical milestone payments.
Vir could also receive up to $1.74 billion in additional development, regulatory and commercial milestone payments. The agreement includes tiered royalties ranging from high single-digit to low double-digit percentages on net sales of the resulting therapies.
The collaboration strengthens the companies’ focus on next-generation cancer immunotherapy, particularly treatments targeting solid tumors. T-cell engagers are designed to bring T cells into close contact with cancer cells, helping the immune system recognize and attack tumors. Through this partnership, Vir Biotechnology and Gilead aim to advance new therapeutic candidates for cancers that remain challenging to treat.