Vir Biotechnology Reports 95% Revenue Decline and $121M Net Loss in Q1 2025

Vir Biotechnology, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $3.0 million, a decrease of approximately 95% compared to $56.4 million in the same period of 2024. The drop was primarily driven by a substantial reduction in contract revenue, which fell from $52.2 million to $1.9 million, largely due to the recognition of deferred revenue in the previous year. Grant revenue also decreased from $5.2 million to $1.2 million, reflecting lower revenue from agreements with the Gates Foundation and BARDA, the latter of which was terminated in December 2024. The company reported a net loss of $121.0 million, compared to a net loss of $65.3 million in the prior year, resulting in a net loss per share of $0.88.

Operating expenses for the quarter increased to $142.6 million from $136.5 million year-over-year, driven by higher research and development costs, which rose to $118.6 million from $100.1 million. This increase was attributed to expenses related to the Restated Alnylam Agreement and the initiation of the Phase 3 ECLIPSE trial for chronic hepatitis delta. In contrast, selling, general, and administrative expenses decreased to $23.9 million from $36.3 million, reflecting ongoing cost-saving measures, including headcount reductions.

In terms of strategic developments, Vir Biotechnology has made notable progress in its clinical pipeline. The company enrolled the first patient in its Phase 3 ECLIPSE trial for chronic hepatitis delta in March 2025, which is expected to assess the efficacy of its combination therapy. Additionally, the company is advancing multiple dual-masked T-cell engagers (TCEs) in oncology, with plans to initiate a Phase 1 study for VIR-5525 in the second quarter of 2025. The company also amended its collaboration agreement with Alnylam Pharmaceuticals, which allows for greater flexibility in pursuing commercialization partners outside the U.S.

As of March 31, 2025, Vir Biotechnology reported $1.02 billion in cash, cash equivalents, and investments, which the company believes will be sufficient to fund operations for at least the next twelve months. The company has also entered into a sales agreement to potentially raise up to $300 million through the sale of common stock, although no shares have been sold under this agreement as of the reporting date. Looking ahead, Vir Biotechnology anticipates continued investment in its research and development efforts, particularly in its hepatitis and oncology programs, while navigating the challenges of a competitive and rapidly evolving market.