Raymond James upgraded shares of Vir Biotechnology (NASDAQ:VIR) to Strong Buy from Outperform and lifted its price target to $19.00 from $12.00, following the company's release of clinical data and a strategic collaboration. At the time of the update the stock was trading at $7.43 and has advanced 62% over the last six months, though analyst price objectives in the market still range from $12 to $26.
The upgrade from Raymond James came after Vir disclosed data for VIR-5500 on Monday after the market close. VIR-5500 is an experimental therapy described by the company as a PSMAxCD3 dual-masked bispecific antibody. Vir also announced a partnership with Astellas tied to the drug's development.
Under the agreement with Astellas, Vir will receive $335 million in upfront and near-term payments. The deal divides U.S. profits and losses evenly at a 50/50 split, while Vir is positioned to earn double-digit royalties on sales outside the United States. An InvestingPro note highlights that Vir's balance sheet shows more cash than debt, a composition that can provide flexibility as the company progresses development programs. Additional analysis and a full Pro Research Report for VIR are available through InvestingPro.
Raymond James said the VIR-5500 data at target dose ranges establish the program as a leading candidate among PSMA-targeted T-cell engagers and serve as proof-of-concept for Vir's PRO-XTEN masking technology platform. The research firm also indicated it expects Vir's combination treatment of tobevibart and elebsiran for Hepatitis D to be approvable.
Separately, Vir released fourth-quarter 2025 and full-year results on Monday. The company reported results for the quarter and the year that exceeded expectations for both earnings per share (EPS) and revenue, a performance that produced a positive market reaction.
Other analysts also reacted to the VIR-5500 update. Evercore ISI raised its price target on Vir shares from $12 to $18 and maintained an Outperform rating, citing the favorable Phase 1 data for VIR-5500 as a driver of its revised outlook. The combination of clinical progress and the Astellas partnership were explicitly referenced by Evercore ISI when adjusting its valuation assumptions.
In summary, the confluence of Phase 1 clinical activity for VIR-5500, a commercial-development partnership with Astellas that includes sizable near-term payments and an improved set of quarterly financials have prompted at least two sell-side firms to lift their price targets and revise ratings. The stock has moved higher over the past six months, but remains below the range of analyst targets being cited in the market.
Summary
Raymond James upgraded Vir Biotechnology to Strong Buy and boosted its price target to $19 after Vir published Phase 1 data for VIR-5500 and announced a revenue-sharing partnership with Astellas that includes $335 million in upfront and near-term payments. Vir also reported fourth-quarter and full-year 2025 results that topped EPS and revenue expectations, prompting positive market response and additional analyst target increases.
Key points
- Raymond James upgraded VIR to Strong Buy from Outperform and increased its price target to $19 from $12.
- Vir released Phase 1 data for VIR-5500 and signed a partnership with Astellas that includes $335 million in upfront and near-term payments, a 50/50 split of U.S. profits and losses, and ex-U.S. double-digit royalties for Vir.
- Vir's fourth-quarter and full-year 2025 results beat expectations for both EPS and revenue; Evercore ISI also raised its price target to $18 and maintained an Outperform rating following the VIR-5500 data.
Risks and uncertainties
- Clinical and regulatory outcomes remain material to the value of VIR-5500 and other development programs - approvals and later-stage results are not assured.
- Despite recent gains, the share price remains below analyst targets that range from $12 to $26, reflecting divergent valuations among observers.
- Future development and commercialization depend on execution of partnerships and continued financing - while the balance sheet reportedly shows more cash than debt, ongoing program costs and milestones could affect capital needs.