Vir Biotechnology, Inc. (NASDAQ: VIR) announced that its treatments, tobevibart and elebsiran, for chronic hepatitis delta have received a positive opinion for orphan drug designation from the European Medicines Agency (EMA) Committee for Orphan Medicinal Products (COMP). The company is scheduled to present data from its Phase 2 SOLSTICE trial at The Liver Meeting, hosted by the American Association for the Study of Liver Diseases (AASLD) in San Diego, California.
The orphan drug designation in the European Union (EU) is reserved for potential treatments of rare, life-threatening, or chronically debilitating diseases where no satisfactory treatment options are currently available. This status provides Vir Biotechnology with incentives such as scientific advice, fee reductions, and a decade of market exclusivity upon approval.
The COMP's positive opinion is based on preliminary data from the Phase 2 SOLSTICE trial, which is evaluating the safety, tolerability, and efficacy of tobevibart and elebsiran, either alone or in combination, in patients with chronic hepatitis delta. Hepatitis delta, caused by the hepatitis delta virus (HDV), is the most aggressive form of chronic viral hepatitis, often leading to cirrhosis and liver failure within five years of infection.
Urgent Need for New Therapies
Dr. Mark Eisner, Executive Vice President and Chief Medical Officer at Vir Biotechnology, emphasized the urgent need for new therapeutic options for chronic hepatitis delta, citing encouraging clinical data suggesting significant improvements in patient outcomes. More than 50% of patients in the SOLSTICE study achieved a viral load of "not detected" at week 24.
Mechanism of Action and Prior FDA Designation
Tobevibart is a monoclonal antibody designed to inhibit the entry of hepatitis B and hepatitis delta viruses into cells. Elebsiran is a small interfering ribonucleic acid (siRNA) targeting the hepatitis B virus RNA. Both treatments are currently in clinical development for chronic hepatitis B and hepatitis delta.
In June 2024, the U.S. Food and Drug Administration (FDA) granted fast track designation to the combination of tobevibart and elebsiran, aiming to expedite the development and review of drugs for serious conditions with unmet medical needs.
Financial Position and Future Plans
Vir Biotechnology reported significant developments in its third-quarter 2024 earnings call, highlighting a licensing agreement with Sanofi for three T-cell engager programs and advancements in hepatitis trials. Research and development expenses increased to $195 million due to the Sanofi transaction, while SG&A expenses decreased to $25.7 million. Vir ended the quarter with $1.19 billion in cash and equivalents. The company plans to initiate a registrational program for hepatitis delta virus (HDV) in 2025.
InvestingPro Insights
According to InvestingPro data, Vir's market capitalization stands at $969.55 million. Vir holds more cash than debt on its balance sheet, which is crucial for a biotech company developing novel treatments. Four analysts have revised their earnings upwards for the upcoming period, aligning with the recent developments in Vir's hepatitis delta treatments.
