Morgan Stanley upgrades Vir Biotechnology to 'overweight,' raises PT to $20

Investing.com -- Morgan Stanley (NYSE:MS) analysts have upgraded Vir Biotechnology (NASDAQ:VIR) to an "overweight" rating, shifting from "equal-weight," and have also increased their price target to $20 from $10. 

The analysts flagged promising preliminary data from the company's dual-masked TCE therapies. Vir-5500, targeting prostate-specific membrane antigen in metastatic castration-resistant prostate cancer, demonstrated notable safety and efficacy in early trials. 

Among heavily pretreated participants, a 58% PSA50 response rate was observed, signaling a reduction in prostate-specific antigen levels. 

Another candidate, Vir-5818, showed early signs of efficacy in colorectal cancers, with partial tumor shrinkage in 33% of the treated cases. Both drugs exhibited manageable safety profiles, with no high-grade toxicities reported.

As per Morgan Stanley, the dual-masking technology offered by Vir can enhance therapeutic tolerability and efficacy, making these treatments more acceptable to earlier stages of cancer treatment. 

Additionally, the analysts noted that the company has extended its cash runway to mid-2027, enhancing its ability to fund ongoing clinical trials and explore strategic partnerships.

This upgrade comes as Vir diversifies beyond its traditional infectious disease portfolio into oncology. 

While the company has deprioritized some programs, such as hepatitis B, the focus on innovative cancer treatments aligns with its focus on high-potential areas.