Vir Biotechnology to Cut 140 Jobs in Restructuring to Focus on Hepatitis Drug Development

By Josée Rose

Vir Biotechnology is restructuring to focus on its clinical-stage pipeline and is cutting about 140 jobs.

The clinical stage biopharmaceutical company is phasing out programs in influenza, Covid-19 and T-cell based viral vector. This will result in a workforce reduction of about 25%. Vir expects to have about 435 employees by the end of 2024, down about 200 from its peak headcount in 2023.

Vir expects to incur expenses of $11 million to $13 million related to severance cash payouts, most of which should occur in the second half of 2024.

In conjunction with the restructuring, Vir entered an exclusive agreement with Sanofi for three clinical-stage masked T-cell engagers and the exclusive use of protease-cleavable masking platform for oncology and infectious diseases.

Vir said certain Sanofi employees with extensive scientific and development expertise in T-cell engagers, and in-depth experience using the masking platform technology, will join Vir after the companies receive federal approval.

Vir said Sanofi would receive an upfront payment and is eligible to receive future development, regulatory and commercial net sales-based milestone payments and tiered royalties on worldwide net sales.

Vir expects to realize about $50 million of annual workforce cost savings in 2025 and said it will put the money toward its Sanofi deal.

Vir's pipeline programs are focused on chronic hepatitis. It said its restructuring is "to advance the development of its hepatitis programs and focus on the highest near-term value opportunities."

Write to Josée Rose at josee.rose@wsj.com

(END) Dow Jones Newswires

August 01, 2024 17:31 ET (21:31 GMT)

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