Vir Biotechnology and Gilead Strike Up-to-$1.9B Cancer Deal as Biotech Sector Sees Wave of Clinical and Deal Activity

Vir Biotechnology and Gilead Sciences announced a multi-program collaboration to discover and develop novel PRO-XTEN dual-masked T-cell engagers for solid tumors, with Vir receiving $90 million upfront: $65 million in cash and a $25 million equity investment from Gilead at a 30% premium to market price. The partnership could be worth up to $1.9 billion in total and combines Vir's T-cell engager discovery, AI-enabled protein engineering, and clinically validated PRO-XTEN masking technology with Gilead's oncology development and commercialization expertise. Vir shares surged more than 11% in premarket trading on the news.

Verastem Oncology was another focal point, reporting a 50% confirmed overall response rate for its investigational oral KRAS G12D inhibitor VS-7375 in second-line pancreatic ductal adenocarcinoma, including two complete responses in patients with second-line-plus disease. The company simultaneously announced a CEO transition, with Michael P. Bailey appointed President and CEO to succeed Daniel Paterson, who will retire after a 35-year career in biopharmaceuticals. To fund pipeline advancement, Verastem priced an underwritten offering of roughly 30.94 million shares at $8 each, along with pre-funded warrants, raising approximately $250 million. Shares gained around 8% in premarket trade.

Viking Therapeutics launched its Phase 3 program for oral VK2735 in obesity, initiating two pivotal trials, SUNRISE-1 and SUNRISE-2, each targeting enrollment of 560 adults. Both trials will measure the percent change in body weight from baseline versus placebo after 68 weeks of treatment, a key threshold for regulatory approval in the competitive weight-loss drug market.

Arrowhead Pharmaceuticals gained roughly 5.5% in premarket trading after interim data from its ARO-MAPT Phase 1/2a trial showed that the company's siRNA therapy crossed the blood-brain barrier and reduced cerebrospinal fluid tau levels by 73% at the highest dose tested, a meaningful signal for its Alzheimer's disease program.

Ultragenyx Pharmaceutical agreed to sell a Rare Pediatric Disease Priority Review Voucher, earned for its Fayuvi approval, for $203 million, providing a substantial non-dilutive cash infusion. Separately, Atara Biotherapeutics received FDA acceptance of its resubmitted biologics license application for tabelecleucel, with a PDUFA target date of March 31, 2027.