Stock Alert: Vir Biotechnology Shares Soar 26% In Pre-Market

(RTTNews) - Shares of Vir Biotechnology Inc. (VIR) are rising over 26% in pre-market today, after the company announced signing of a binding agreement to enter into a collaboration with GlaxoSmithKline plc (GSK) to research and develop solutions for coronaviruses, including SARS-CoV-2, the virus that causes COVID-19.

The companies noted that the collaboration would use Vir's proprietary monoclonal antibody platform technology to accelerate existing and identify new anti-viral antibodies that could be used as therapeutic or preventative options to help address the current COVID-19 pandemic and future outbreaks.

Further, the companies would leverage GSK's expertise in functional genomics and combine their capabilities in CRISPR screening and artificial intelligence to identify anti-coronavirus compounds that target cellular host genes. They would also apply their combined expertise to research SARS-CoV-2 and other coronavirus vaccines.

In addition, to gain access to Vir's technology, GSK would make an equity investment in Vir of $250 million, priced at $37.73, a 10% premium to the closing share price on Friday, March 27, 2020.

The stock has been trading between $11.65 and $75.00 in the past one year, and closed Friday's trade at $29.00, down 26 cents or 0.89%. VIR is currently trading at $36.61, up $7.61 or 26.24% in the pre-market trading session.