Vir Biotechnology, Inc. (NASDAQ: VIR) has presented encouraging results from its Phase 2 MARCH trial, evaluating novel treatment regimens for chronic hepatitis B (HBV). The study assessed the efficacy of tobevibart and elebsiran, alone or in combination with pegylated interferon alfa, demonstrating significant rates of hepatitis B surface antigen (HBsAg) loss, particularly in participants with low baseline HBsAg levels.
Key Findings from the MARCH Trial
The Phase 2 trial investigated two treatment regimens: a doublet consisting of tobevibart and elebsiran, and a triplet that added pegylated interferon alfa. The doublet regimen achieved HBsAg loss in 39% of participants with low baseline HBsAg. The triplet regimen showed an even higher success rate, with 46% of participants achieving HBsAg loss. Furthermore, 50% of those in the doublet group and all in the triplet group who achieved HBsAg loss also experienced anti-HBs seroconversion, suggesting a potential immune response against the virus.
The safety profile of both treatments was consistent with previous studies, with no new safety concerns identified. Treatment-emergent adverse events were generally mild to moderate.
Clinical Significance and Future Directions
The data were presented at The Liver Meeting® of the American Association for the Study of Liver Diseases (AASLD) in San Diego on November 18. These findings are part of Vir Biotechnology's broader effort to develop a functional cure for chronic hepatitis B, a condition affecting millions globally and potentially leading to severe liver complications. The company anticipates further data on the functional cure in the second quarter of 2025, which will be critical for the next stages of clinical development.
Financial and Strategic Context
Vir Biotechnology's third-quarter 2024 earnings call highlighted a licensing agreement with Sanofi for three T-cell engager programs and advancements in hepatitis trials. The company's R&D expenses increased to $195 million due to this transaction, while SG&A expenses decreased to $25.7 million. Vir ended the quarter with $1.19 billion in cash and equivalents, updating its full-year 2024 expense guidance to between $660 million and $680 million.
The company is also progressing with its hepatitis programs and plans to initiate a registrational program for hepatitis delta virus (HDV) in 2025. Vir's T-cell engager programs are advancing, with Phase I trials ongoing and initial data expected in Q1 2025. In the SOLSTICE study, over 50% of patients achieved a viral load of "not detected" at week 24.
InvestingPro Insights
According to InvestingPro, Vir Biotechnology's market capitalization is $1.11 billion. The company holds more cash than debt on its balance sheet, providing financial stability for ongoing R&D efforts. However, Vir is also quickly burning through cash, a common challenge for biotech firms in the development stage. The stock has experienced a recent decline, with a 1-week price total return of -10.0%.
Vir reported $78.62 million in revenue over the last twelve months, with a revenue decline of -33.82%. Analysts anticipate a sales decline in the current year. Despite these challenges, four analysts have revised their earnings upwards for the upcoming period, and the company's price-to-book ratio of 0.9 suggests the stock may be undervalued relative to its assets.
