Vir Biotechnology Announces Strategic Steps to Reduce Operating Expenses and Focus Investment on Areas with Highest Potential for Value Creation
December 13 2023 - 3:05PM
Business Wire
– Reinforcing strategic focus on chronic
hepatitis delta and chronic hepatitis B clinical programs and
antibody platform to target infectious diseases, autoimmune
diseases, and oncology –
– Reducing workforce by approximately 12% and
consolidating geographic footprint –
– Anticipate annual savings of at least $40
million from cost optimization efforts –
Vir Biotechnology, Inc. (Nasdaq: VIR) today announced strategic
imperatives to focus its capital allocation on programs with the
highest potential for patient impact and value creation. These are
designed to optimize the Company’s cost structure by reducing the
size of its workforce and the number of sites it operates.
“After a thorough review and with a strong focus on our mission,
we are making purpose-led changes to align Vir with our goals to
deliver sustainable growth and ensure we are well-positioned for
the future,” said Marianne De Backer, M.Sc., Ph.D., MBA, Vir’s
Chief Executive Officer. “We have taken great care to ensure we are
supporting those individuals who are impacted by these changes, and
we appreciate the contributions they have made to the Company.
While these decisions are difficult, they will enable us to
prioritize investment in the clinical execution of our chronic
hepatitis delta and chronic hepatitis B programs, as well as on
broadening the long-term applicability of our world-class
monoclonal antibody platform beyond infectious diseases to
autoimmune diseases and oncology.”
Vir is taking the following strategic steps to reduce its
operating expenses:
- R&D facilities in St. Louis, Missouri and Portland, Oregon
will be closed in 2024. Research activities will continue at the
Company’s sites in San Francisco, California and Bellinzona,
Switzerland.
- Approximately 12% or 75 positions will be eliminated, which
includes reductions from the Company’s discontinuation of its
innate immunity small molecule group which was initiated in the
third quarter of 2023. The reductions will be substantially
complete by the first quarter of 2024.
- Vir expects to incur charges between $30 million to $40
million, primarily related to facility closures and to a lesser
extent, employee severance costs. Of the total charges,
approximately $3 million to $4 million will be cash expenditures.
The Company expects to recognize these expenses through the third
quarter of 2024.
- Vir expects to reduce its cost structure by at least $40
million annually. The Company reported $1.7 billion in cash, cash
equivalents and investments in the third quarter of 2023.
In the second quarter of 2024, Vir expects to report new
clinical data from its ongoing Phase 2 trial evaluating its
monoclonal antibody tobevibart (VIR-3434) and its siRNA elebsiran
(VIR-2218) for the treatment of chronic hepatitis delta (SOLSTICE
trial). The Company announced in the third quarter of 2023 that it
is embarking on a broader vision to expand into new areas of growth
by applying its deep immunology expertise beyond infectious
disease.
About Vir Biotechnology, Inc.
Vir Biotechnology, Inc. is an immunology company focused on
combining cutting-edge technologies to treat and prevent infectious
diseases and other serious conditions. Vir has assembled two
technology platforms that are designed to stimulate and enhance the
immune system by exploiting critical observations of natural immune
processes. Its current clinical development pipeline consists of
product candidates targeting hepatitis delta and hepatitis B
viruses and human immunodeficiency virus. Vir has several
preclinical candidates in its pipeline, including those targeting
influenza A and B, COVID-19, RSV/MPV and HPV. Vir routinely posts
information that may be important to investors on its website.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as “may,” “will,” “plan,” “potential,” “aim,”
“expect,” “anticipate,” “promising” and similar expressions (as
well as other words or expressions referencing future events,
conditions or circumstances) are intended to identify
forward-looking statements. These forward-looking statements are
based on Vir’s expectations and assumptions as of the date of this
press release. Forward-looking statements contained in this press
release include, but are not limited to, statements regarding
anticipated expenditures and annual savings in connection with the
reprioritization, the anticipated timing of such cost impacts and
Vir’s strategy and plans; Vir’s cash balance; Vir’s future
financial and operating results and its expectations related
thereto; potential of, and expectations for, Vir’s pipeline; Vir’s
clinical development programs, clinical trials, including the
enrollment of Vir’s clinical trials, and the expected timing of
data readouts and presentations; the potential benefits, safety,
and efficacy of Vir’s investigational therapies; and risks and
uncertainties associated with drug development and
commercialization. Many important factors may cause differences
between current expectations and actual results, including
unexpected safety or efficacy data or results observed during
clinical trials or in data readouts; the timing and outcome of
Vir’s planned interactions with regulatory authorities;
difficulties in obtaining regulatory approval; uncertainty as to
whether the anticipated benefits of Vir’s collaborations with other
companies can be achieved; difficulties in collaborating with other
companies; challenges in accessing manufacturing capacity; clinical
site activation rates or clinical trial enrollment rates that are
lower than expected; successful development and/or
commercialization of alternative product candidates by Vir’s
competitors; changes in expected or existing competition; delays in
or disruptions to Vir’s business or clinical trials, geopolitical
changes or other external factors; and unexpected litigation or
other disputes. Drug development and commercialization involve a
high degree of risk, and only a small number of research and
development programs result in commercialization of a product.
Results in early-stage clinical trials may not be indicative of
full results or results from later-stage or larger-scale clinical
trials and do not ensure regulatory approval. You should not place
undue reliance on these statements or the scientific data
presented. Other factors that may cause actual results to differ
from those expressed or implied in the forward-looking statements
in this press release are discussed in Vir’s filings with the US
Securities and Exchange Commission, including the section titled
“Risk Factors” contained therein. Except as required by law, Vir
assumes no obligation to update any forward-looking statements
contained herein to reflect any change in expectations, even as new
information becomes available.
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version on businesswire.com: https://www.businesswire.com/news/home/20231213396441/en/
Media Carly Scaduto Senior Director, Media Relations
cscaduto@vir.bio +1-314-368-5189
Investors Sasha Damouni Ellis Executive Vice President,
Chief Corporate Affairs Officer sdamouni@vir.bio
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