NASDAQ$VIR

Vir Biotechnology Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a net loss due to increased R&D expenses, offset by grant revenue and focus on monoclonal antibody platform.

Vir Biotechnology reported a net loss of $194.8 million for the second quarter of 2023. The company is prioritizing its monoclonal antibody platform and advancing its pipeline programs, with data readouts expected in Q4 for chronic hepatitis B and hepatitis delta programs. Vir had $1.9 billion in cash, cash equivalents, and investments as of June 30, 2023.

  • Phase 2 data readouts for chronic hepatitis B and chronic hepatitis delta programs are on track for Q4 2023.
  • Increased focus on proprietary antibody platform and discontinuation of Vir’s innate immunity small molecule platform.
  • First participant to be dosed in Phase 1 trial of next-generation HIV vaccine, VIR-1388, anticipated in Q3.
  • Company held $1.9 billion in cash, cash equivalents and investments as of June 30, 2023.

Headline financials

Total Revenue

$3.8M

Previous: -$40.6M+109.3%
EPS (adj)

-$1.45

Previous: -$0.58-150.0%
Capital Expenditures

-$16.3M

Previous: -$36.4M+55.2%
Free Cash Flow

-$211M

Previous: -$113M-86.9%
Net Income

-$195M

Previous: -$76.5M-154.6%
Operating Income

-$215M

Previous: -$225M+4.5%
Gross Profit

$3.78M

Previous: -$68.6M+105.5%
Cash & Equivalents

$667M

Previous: $1.51B-55.7%
Total Assets

$2.24B

Previous: $2.62B-14.3%
Stock-Based Comp

$30.6M

Previous: $27.1M+13.0%

Revenue & EPS history

Vir · Revenue · Quarterly

$3.8M

Q2 2023-109.3%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Vir · $2.72M total across 2 segments · Q2 2023

  • Grant revenue
    $16.5M+702.7%
  • License & collaboration revenue
    -$13.8M+74.9%

Forward guidance

Vir Biotechnology is focused on advancing its monoclonal antibody platform and pipeline programs, with key data readouts expected in the near term. The company anticipates continued progress in its clinical trials and collaborations.

Tailwinds

  • Phase 2 data readouts from ongoing chronic hepatitis B and chronic hepatitis delta programs on track for Q4 2023
  • First participant to be dosed in Phase 1 trial of next-generation HIV vaccine, VIR-1388, anticipated in Q3
  • Multiple trials evaluating the potential for VIR-2218 and VIR-3434 to achieve a functional cure for CHB are on track with data expected in Q4 2023
  • The Phase 2 SOLSTICE trial evaluating VIR-2218 and VIR-3434 as monotherapy and in combination for the treatment of people living with CHD remains on track with initial data expected in Q4 2023
  • Vir is continuing to advance next-generation monoclonal antibodies (mAbs) based on its proprietary platform and enabled by AI and machine-learning capabilities to deliver high-quality solutions more efficiently.

Headwinds

  • In July, Vir reported that the Phase 2 Prevention of Illness Due to Influenza A (PENINSULA) trial evaluating VIR-2482 for the prevention of symptomatic influenza A illness did not meet primary or secondary efficacy endpoints.
  • In the second quarter of 2023, a payment of $273.6 million was made to GSK primarily for excess sotrovimab supply and manufacturing capacity that was reserved in 2022
  • Collaboration revenue was $(13.8) million primarily due to sotrovimab sales that were more than offset by manufacturing costs and expenses to support activities where sotrovimab has marketing authorization.
  • The decrease in contract revenue was primarily driven by a $7.0 million upfront payment related to a license granted to GSK in the second quarter of 2022.
  • The decrease was primarily due to the Company’s inability to realize tax benefit associated with the net loss for the three months ended June 30, 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+2.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-1.3%

Avg return

30 days after

43%

12 / 28 earnings

Positive

+27.7%

Q4 2025

Best reaction

-15.1%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-7.2%-13.7%
Q4 2025+27.7%+22.3%+20.6%
Q3 2025-5.6%-8.9%+8.3%
Q1 2025-3.4%-16.2%-2.9%
Q4 2024-11.8%-10.9%-27.2%
Q3 2024+21.8%+26.8%+4.7%
Q2 2024-9.4%-15.4%-18.7%
Q1 2024+18.9%+13.6%+17.5%
Q4 2023+14.0%+13.1%-0.6%
Q3 2023+12.5%+8.3%+24.4%
Q2 2023-3.0%-4.8%-10.9%
Q1 2023-3.5%-4.5%+7.5%
Q4 2022-14.8%-15.6%-16.7%
Q3 2022+15.0%+20.3%+23.7%
Q2 2022+2.0%-4.9%-25.9%
Q1 2022-3.1%-1.4%+12.5%
Q4 2021+0.1%-13.7%-21.5%
Q3 2021-15.1%-11.7%+20.4%
Q2 2021+3.3%+10.5%+32.0%
Q1 2021-1.0%-8.5%+3.5%
Q4 2020-4.2%-11.7%-21.2%
Q3 2020+8.2%+5.8%+26.0%
Q2 2020-0.6%-0.9%-46.8%
Q2 2019-0.6%-0.9%-46.8%
Q1 2020-1.9%-3.1%+7.2%
Q1 2019-1.9%-3.1%+7.2%
Q4 2019+11.5%+11.4%+6.0%
Q3 2019-3.0%-0.5%-3.7%
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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