(Alliance News) - GlaxoSmithKline PLC and US-based Vir Biotechnology Inc have entered a collaboration agreement to develop solutions for coronaviruses including SARS-CoV-2, the virus that causes COVID-19, the companies announced on Monday.
In addition to gaining access to Vir's technology, Glaxo will make an equity investment in Nasdaq-listed Vir of USD250 million, priced at USD37.73 per share, a 30% premium to the closing share price on Friday.
Shares in Glaxo were up 0.2% at 1,492.20 pence each in London. Vir Biotechnology shares on Friday at USD29.00 each on Friday. In pre-market trade in New York on Monday, the stock was up 34% to USD38.80.
The collaboration will use Vir's monoclonal antibody platform technology to accelerate existing and identify new anti-viral antibodies that could be used to help address the current Covid-19 pandemic and future outbreaks. The companies will also take advantage of Glaxo's expertise in functional genomics, gene editing and artificial intelligence to identify anti-coronavirus compounds that target cellular host genes.
Glaxo and Vir also plan to use their combined expertise to research SARS-CoV-2 and other coronavirus vaccines.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Glaxosmithkline (GSK)