Vir Biotechnolgy (VIR 0.37%) and GlaxoSmithKline (GSK 1.60%) recently expanded their partnership from a single drug to treat COVID-19 to a multi-drug partnership that covers a drug for the flu, as well as drugs that Vir hasn't even developed yet. In this video from Motley Fool Live, recorded on Feb. 22, Fool.com contributors Brian Orelli and Keith Speights discuss whether the expanded partnership could eventually result in GlxoSmithKline buying Vir outright.

10 stocks we like better than Vir Biotechnology Inc
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Vir Biotechnology Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of February 24, 2021

 

Brian Orelli: Do you think Glaxo might just buy Vir outright at some point?

Keith Speights: Yeah. I think it's a real possibility. There are some impediments there that could get in the way. Vir also has some collaborations going on with Alnylam Pharmaceuticals (ALNY 0.19%), ticker there is ALNY, also another collaboration with Gilead Sciences (GILD 0.12%), huge biotech, ticker there's GILD. That could complicate things a bit. Vir and Gilead are working together to develop what they're calling a functional cure for hepatitis B. Vir and Alnylam are working together on RNA interference therapy targeting COVID. Those could be issues, perhaps, if GlaxoSmithKline was interested in acquiring Vir down the road. I think probably the bigger issue might be Vir's deal with Gilead because Glaxo and Gilead are competitors on several fronts, they both market HIV therapies that compete against each other. They're both developing hepatitis B virus therapies, so that might be an issue, but I think if GlaxoSmithKline really wanted to acquire Vir down the road, neither one of those deals would necessarily block them from doing so.

Orelli: They can always just work a deal out to give the assets to Gilead or something, if they really didn't want to work with them.

Speights: If they want it bad enough, they can make it happen.

Orelli: Exactly.