Under the terms of the agreement, Astellas will provide Vir with $240 million in cash and a $75 million equity investment, purchasing roughly 7.2 million shares at $10.36 per share. An additional $20 million milestone is scheduled for the third quarter of 2027 following the transfer of manufacturing technology. Beyond these initial payments, Vir remains eligible for up to $1.37 billion in future milestones, plus tiered double-digit royalties on sales generated outside the United States.

Advancing PSMA-Targeted Therapy

The collaboration focuses on VIR-5500, a dual-masked T-cell engager that targets prostate-specific membrane antigen (PSMA). Currently in Phase 1 development, the therapy is designed to activate the immune system against cancer cells while minimizing off-target effects. The partners will share global development costs, with Astellas covering 60% and Vir 40%, though expenses for the U.S. market will be split equally between the two firms.

Astellas will hold exclusive rights to commercialize the treatment outside the U.S., while Vir maintains the option to co-promote the drug domestically and share profits. The deal also involves third-party obligations; according to the filing, Vir will share a portion of the collaboration proceeds with Sanofi as part of a prior licensing agreement. This strategic move allows Astellas to bolster its oncology portfolio while providing Vir with the capital necessary to advance its clinical pipeline.