2023-03-06 07:47:59 ET
Vir Biotechnology ( NASDAQ: VIR ) added ~5% pre-market Monday after JPMorgan upgraded the COVID-19 drugmaker citing upcoming data readouts for VIR-2482 and VIR-2218, candidates targeted at influenza A and Hepatitis B Virus, respectively.
In mid-2023, the biotech expects to report initial data for the monoclonal antibody VIR-2482 from its Phase 2 PENINSULA study in adults aged 65 and older in the prevention of influenza A. VIR-2218 is set for a topline readout in H2 2023 as a therapeutic combination against Hepatitis B from the company’s Part B portion of the MARCH trial.
JPMorgan analyst Eric Joseph who upgraded the stock to Overweight from Neutral, expects >50% upside - 10% downside in Vir ( VIR ) shares in response to PENINSULA data.
Pointing to a rival mRNA-based flu vaccine candidate from Pfizer ( PFE )/BioNTech ( BNTX ), which is set for a 2023 readout, Joseph argues that “additional visibility on the RNA competitive front may be needed for shares to become more constructive on VIR-2482 alone.”
Joseph sees additional momentum in H2 2023 as data from the MARCH study drives investor attention to VIR-2218, given its potential to become a functional cure and the larger market opportunity.
“Bigger picture, at current EV of ~$1B, we believe VIR levels meaningfully underreflect the VIR-2482 flu and HBV franchises on a risk adjusted basis,” the analyst concluded, trimming the price target on the stock to $34 from $35 per share.
Seeking Alpha contributor Amit Ghate issued a Strong Buy rating on Vir ( VIR ) in January, arguing that its recent selloff, which reflected concerns over the sustainability of the company’s COVID-related revenue and general market conditions, seemed “excessive.”
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Vir gains as JPMorgan upgrades on flu and Hep B candidates