Why Vir Biotechnology Stock Is Higher Today
Shares of Vir Biotechnology (NASDAQ: VIR) were 12.6% higher as of 12:47 p.m. EST on Wednesday. The big gain came after Vir and GlaxoSmithKline (NYSE: GSK) announced that they're expanding their collaboration to include the development of therapies targeting influenza and other respiratory viruses. Last year, Vir and GlaxoSmithKline teamed up to develop therapies targeting coronaviruses, including the one that causes COVID-19.
Expanding a major deal with a big drugmaker is usually a guaranteed way to light a fire beneath a small biotech stock like Vir. It helps even more when that deal includes additional skin in the game from the big drugmaker. In this case, GlaxoSmithKline is upping its stake in Vir by $120 million. The company is also giving Vir an up-front payment of $225 million.
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Source Fool.com
