Vir Biotechnology signs TCE collaboration and license deal with Gilead Sciences
Gilead gets exclusive rights to develop three masked T-cell engager candidates discovered by Vir, with a stock purchase alongside the agreement.
Vir Biotechnology, Inc. entered into a Collaboration and License Agreement with Gilead Sciences, Inc. on October 9, 2026, under which the companies will work together to discover and engineer three novel PRO-XTEN dual-masked T-cell engager development candidates targeting selected solid tumor-associated antigens.1 Gilead will hold an exclusive license to develop and commercialize the resulting TCEs.1
Under the agreement, Vir Biotechnology is responsible for discovery, design and optimization of the three candidates, while Gilead holds the exclusive license to nominate and advance them and will handle subsequent development, manufacturing and commercialization.1
On the financial terms, Vir said it could receive total upfront and near-term preclinical milestone payments of up to $135 million, made up of $90 million in upfront consideration ($65 million in cash plus a $25 million equity investment priced at a 30% premium) and up to $45 million tied to near-term preclinical milestones, according to the company's announcement, which it titled "Vir Biotechnology Enters Multi-Program Collaboration and License Agreement with Gilead Sciences to Discover and Develop Novel PRO-XTEN® Dual-masked T-cell Engagers for Solid Tumors." Beyond that, Vir said it could receive up to $1.74 billion in further development, regulatory and commercial milestones, along with tiered royalties on net sales ranging from high single digits to low double digits.1
Alongside the collaboration agreement, the companies signed a Stock Purchase Agreement in which Gilead agreed to buy 1,765,486 shares of Vir common stock at $14.16 per share, for a total of roughly $25 million, pending customary closing conditions.1 The purchase agreement carries standstill, voting and lockup terms that run for one year after closing, after which Gilead can, in certain cases, require Vir to register the resale of those shares.1 The shares are being sold under an exemption from registration under Section 4(a)(2) of the Securities Act, based partly on Gilead's status as an accredited investor.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.