Please ensure Javascript is enabled for purposes of website accessibility

Why Vir Biotechnology Stock Soared Today

By Joe Tenebruso - Mar 11, 2021 at 5:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors are excited about the potential of the company's investigational coronavirus therapy.

What happened

Shares of Vir Biotechnology (VIR -2.29%) surged 32% on Tuesday after the immunology company announced promising clinical trial results for its COVID-19 antibody treatment. 

So what 

Vir and its partner GlaxoSmithKline (GSK 2.20%) said an independent data monitoring committee recommended that they stop their phase 3 study of VIR-7831 early, as the experimental therapy demonstrated "profound efficacy."

A person is pointing to an upwardly sloping digital chart.

Investors bid up Vir Biotechnology's stock price on Thursday. Image source: Getty Images.

An interim analysis of the trial showed VIR-7831 reduced the risk of hospitalization or death by 85% in patients compared to a placebo. The treatment was also well-tolerated among the study's 583 participants.

Better still, Vir and GlaxoSmithKline said results from another study suggest VIR-7831 could be effective against new coronavirus mutations, including the U.K., South African, and Brazilian variants.

Now what

Based on these positive results, Vir and GlaxoSmithKline intend to request Emergency Use Authorization (EUA) for VIR-7831 from the U.S. Food and Drug Administration (FDA) and other international regulators.

"We are pleased that this unique monoclonal antibody was able to bring such a profound benefit to patients," GlaxoSmithKline chief scientific officer Dr. Hal Barron said. "We look forward to the possibility of making VIR-7831 available to patients as soon as possible."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Vir Biotechnology, Inc. Stock Quote
Vir Biotechnology, Inc.
VIR
$24.36 (-2.29%) $0.57
GlaxoSmithKline plc Stock Quote
GlaxoSmithKline plc
GSK
$44.52 (2.20%) $0.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.