Investing.com -- Vir Biotechnology (NASDAQ:VIR) stock rose 3% after the company announced it has granted Norgine exclusive licensing rights for its hepatitis delta treatment in Europe, Australia, and New Zealand.
The San Francisco-based biotech firm will receive an initial payment of €55 million upon closing and could earn up to €495 million in additional milestone payments, along with tiered royalties ranging from mid-teens to high-twenties percent on net sales in Norgine’s licensed territories.
Under the agreement, Vir will retain all commercialization rights for the combination therapy of tobevibart and elebsiran in the United States and markets outside Greater China. The companies will share clinical development costs for the ongoing ECLIPSE registrational program, with Norgine contributing approximately 25% of future external costs.
Vir also announced it has completed enrollment for ECLIPSE 3, a Phase 2b head-to-head trial comparing its combination therapy against bulevirtide in treatment-naïve patients. This study aims to support access and reimbursement efforts in European markets.
The licensing deal is expected to extend Vir’s cash runway into the fourth quarter of 2027, according to the company’s current operating plan.
Recent data from the Phase 2 SOLSTICE trial showed promising results, with 66% of participants receiving the monthly combination therapy achieving undetectable levels of hepatitis delta virus RNA. The treatment demonstrated efficacy in patients with cirrhosis and high baseline viral loads while maintaining a favorable safety profile.
The transaction’s closing for certain jurisdictions outside the U.S. remains subject to regulatory approvals.
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