Vir Biotechnology, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
VIR$12.21+10.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001628280-26-053549
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001628280-26-070273
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 148 previous paragraphs and 145 current paragraphs.
90 unchanged; 34 reworded; 21 added; 20 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
•We will present expanded Phase 2 SOLSTICE results in oral presentations at the American Association for the Study of Liver Diseases (AASLD) The Liver Meeting® 2026 on November 8.
Current report
Oncology
Current report
VIR-5500/ASP6958
Current report
•U.S. FDA granted Fast Track designation to VIR-5500, a PSMA-targeted PRO-XTEN® dual-masked TCE, for the treatment of late-line mCRPC.
Current report
•VIR-5500 has achieved proof of concept, reinforcing the scientific rationale for advancing the program into late-stage development. We expect multiple pivotal trials to begin in 2027.
Current report
•VIR-5500 is currently being evaluated in a Phase 1 trial (NCT05997615) as a monotherapy and combination therapy across six dose-expansion cohorts. Indications include taxane naïve mCRPC, radioligand therapy naïve mCRPC, radioligand therapy exposed mCRPC and metastatic hormone sensitive prostate cancer.
Current report
•The Phase 1 trial (NCT05356741) evaluating VIR-5818, a HER2-targeted PRO-XTEN® dual-masked TCE, safety and pharmacokinetics, with dose-escalation and signal-finding components, has enrolled patients with a variety of HER2-expressing cancers. Following recent feedback from the FDA, we intend to add backfill cohorts in a more homogeneous patient population in the monotherapy arm of the study to determine optimal dose and schedule. This is aligned with the FDA’s Project Optimus, an initiative to reform the dose optimization and dose selection paradigm in oncology drug development.
Current report
•Dose escalation of VIR-5818 in combination with pembrolizumab, a PD1 inhibitor, is ongoing.
Current report
•We expect to present data at a future scientific conference.
Current report
•We announced a collaboration and license agreement with Gilead Sciences, Inc. (Gilead) to discover and engineer three novel PRO-XTEN® dual-masked TCE development candidates targeting selected solid tumor-associated antigens. Under the agreement, Gilead will have an exclusive license to develop and commercialize the novel TCEs.
Current report
◦In October 2026, we received $90 million in cash consideration, including a $65 million upfront payment and a $25 million equity investment, and are eligible to receive up to $45 million in potential near-term preclinical milestones. We also have the potential to receive up to $1.74 billion in further development, regulatory and commercial milestones, along with tiered royalties on net sales.
Current report
Other Expense, Net
Current report
Benefit from (Provision for) Income Taxes
Current report
The change in grant revenue for three and nine months ended September 30, 2026 compared to the same periods in 2025 was nominal.
Current report
The decrease in research and development expenses for the three months ended September 30, 2026 compared to the same period in 2025 was primarily due to:
Current report
•lower license, collaborations and contingent consideration expenses primarily due to a $75.0 million milestone payment due upon VIR-5525 achieving “first in human dosing” in the third quarter of 2025, as well as the recognition of cost recoveries in connection with our collaborations with Astellas and Norgine in the third quarter of 2026.
Current report
•higher contract manufacturing attributable to our oncology and CHD programs.
Current report
The decrease in research and development expenses for the nine months ended September 30, 2026 compared to the same periods in 2025 was primarily due to:
Current report
Other Expense, Net
Current report
Benefit from (Provision for) Income Taxes
Current report
Subsequent to the end of the third quarter of 2026, we received $90.0 million cash consideration in connection with the closing of our Collaboration and License Agreement with Gilead Sciences, Inc. on October 9, 2026, consisting of a $65.0 million upfront payment and a $25.0 million equity investment.
Removed paragraphs (20)
Previous report
•We presented complete Week 96 Phase 2 SOLSTICE data at the European Association for the Study of the Liver (EASL) Congress in May 2026.
Previous report
◦In the intent-to-treat (ITT) analysis, the data showed 88% (28/32) of participants treated with the combination of elebsiran and tobevibart achieved undetectable hepatitis delta virus RNA (HDV RNA Target Not Detected, TND) compared to 53% (17/32) of participants on antibody monotherapy.
Previous report
◦In the last-observation carried forward analysis, the data showed the combination regimen achieved HDV RNA TND in 97% (31/32) of participants.
Previous report
◦The combination regimen continues to be generally well tolerated. Treatment-emergent adverse events were generally mild to moderate and transient, and there were no treatment-related serious adverse events or discontinuations.
Previous report
Solid Tumors
Previous report
VIR-5500
Previous report
•We closed our global strategic collaboration with Astellas US LLC (together with its subsidiaries and affiliates (including its indirect parent, Astellas Pharma Inc.), Astellas) to advance PSMA-targeted, PRO-XTEN® dual-masked T-cell engager (TCE) VIR-5500 for the treatment of prostate cancer. We and Astellas have built a strong operational infrastructure for collaboration and rapidly worked together on Phase 1 trial design to advance the dose-expansion cohorts.
Previous report
•We initiated additional Phase 1 dose-expansion cohorts evaluating VIR-5500 at Q3W 800/2000/3500 µg/kg step-up dosing. The first patients were dosed in three monotherapy cohorts evaluating VIR-5500 in taxane naïve mCRPC, radioligand therapy naïve mCRPC and radioligand therapy exposed mCRPC, and one combination cohort evaluating VIR-5500 in combination with enzalutamide in early-line mCRPC.
Previous report
•We anticipate initiating two additional Phase 1 dose-expansion cohorts, including VIR-5500 in combination with docetaxel in early-line mCRPC and VIR-5500 in combination with darolutamide in metastatic hormone-sensitive prostate cancer.
Previous report
•We anticipate initiating pivotal Phase 3 trials in 2027.
Previous report
•We expect to report updated dose-escalation data from our Phase 1 trial evaluating VIR-5818, a HER2-targeted PRO-XTEN® dual-masked TCE, as a monotherapy and in combination with pembrolizumab, in the second half of 2026. The dose-escalation parts of the Phase 1 trial have a basket design, enrolling across multiple tumor types.
Previous report
•We are currently progressing a number of PRO-XTEN® masked TCEs in preclinical studies directed at clinically validated targets with potential applications across a variety of solid tumors.
Previous report
•On May 25, 2026, we announced that Saira Ramasastry, M.S., M.Phil., a member of our Board of Directors and Chair of our Audit Committee, would be stepping down from her role as a member of our Board of Directors and the Audit Committee.
Previous report
•On April 16, 2026, we announced that Vicki Sato, Ph.D., the Chair of our Board of Directors, would not stand for reelection at our 2026 Annual Meeting of Stockholders on May 26, 2026. On May 26, 2026, Jeffrey S. Hatfield, MBA assumed the role of Chair of our Board of Directors.
Previous report
Other (Expense) Income, Net
Previous report
Provision for Income Taxes
Previous report
The increase in research and development expenses for the three months ended June 30, 2026 compared to the same periods in 2025 was primarily due to:
Previous report
The increase in research and development expenses for the six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to:
Previous report
Other (Expense) Income, Net
Previous report
Provision for Income Taxes
Reworded paragraphs (34)
Previous wording
We are a clinical-stage biopharmaceutical company focused on powering the immune system to transform lives by discovering and developing medicines for serious infectious diseases and cancer. At Vir Bio, we have a bold vision – powering the immune system to transform lives. Our clinical-stage portfolio includes programs for chronic hepatitis delta (CHD) and multiple dual-masked T-cell engagers (TCEs) across validated targets in solid tumor indications. We also have a preclinical portfolio of programs across a range of infectious diseases and oncologic malignancies.
Current wording
We are a clinical-stage biopharmaceutical company focused on powering the immune system to transform lives by discovering and developing medicines for serious infectious diseases and cancer. At Vir Bio, we have a bold vision – powering the immune system to transform lives. Our clinical-stage portfolio includes programs for chronic hepatitis delta (CHD) and multiple PRO-XTEN®dual-masked T-cell engagers (TCEs) across validated targets in solid tumor indications. We also have a preclinical portfolio of programs across a range of oncologic malignancies.
Previous wording
In HDV, our ECLIPSE registrational program is fully underway with all three trials initiated. Should the ECLIPSE program yield positive results that support regulatory approval and subsequent commercial launch, we believe the combination of elebsiran and tobevibart has the potential to be a new standard of care for hepatitis delta patients, for whom approved treatment options are either limited or unavailable. In oncology, we are advancing phase 1 clinical studies for our dual-masked TCEs: VIR-5500 in patients with PSMA-expressing metastatic castration-resistant prostate cancer (mCRPC), VIR-5818 in patients with HER2-expressing tumors, and VIR-5525 in patients with EGFR-expressing tumors. In addition, we are developing therapeutic candidates in HIV cure and other solid tumors, leveraging our expertise and platform strengths, and we have made available for external partnerships our next-generation preclinical influenza A and B antibodies and antibody-drug conjugates (ADCs) along with our next-generation COVID monoclonal antibodies (mAbs).
Current wording
In CHD, our ECLIPSE registrational program is fully underway with all three trials initiated. Should the ECLIPSE program yield positive results that support regulatory approval and subsequent commercial launch, we believe the combination of elebsiran and tobevibart has the potential to be a new standard of care for hepatitis delta patients, for whom approved treatment options are either limited or unavailable. In oncology, we are advancing phase 1 clinical studies for our PRO-XTEN®dual-masked TCEs: VIR-5500 in patients with PSMA-expressing metastatic castration-resistant prostate cancer (mCRPC), VIR-5818 in patients with HER2-expressing tumors, and VIR-5525 in patients with EGFR-expressing tumors. In addition, we are developing therapeutic candidates in HIV cure and other solid tumors, leveraging our expertise and platform strengths, and we have made available for external partnerships our next-generation preclinical influenza A and B antibodies and antibody-drug conjugates.
Previous wording
◦Topline data from the Phase 3 ECLIPSE 1 trial are expected in the fourth quarter of 2026.
Current wording
•Topline data from the pivotal ECLIPSE 1 trial are expected in the fourth quarter of 2026.
Previous wording
•We completed enrollment in the Phase 3 ECLIPSE 2 trial, and the entire ECLIPSE registrational program is now fully enrolled. ECLIPSE 2 evaluates the efficacy and safety of switching from bulevirtide to elebsiran and tobevibart in people with CHD who have not achieved viral suppression with bulevirtide therapy and is intended support medication transitions as appropriate. These data, along with data from ECLIPSE 1 and 3, will be part of a comprehensive global filing package.
Current wording
•Data from ECLIPSE 1, ECLIPSE 2 and ECLIPSE 3 will be part of a comprehensive global filing package.
Previous wording
•The Phase 1 trial of VIR-5525, an EGFR-targeted PRO-XTEN® dual-masked TCE, as a monotherapy and in combination with pembrolizumab continues enrollment as expected.
Current wording
•The Phase 1 trial (NCT06960395) of VIR-5525, an EGFR-targeted PRO-XTEN® dual-masked TCE, continues enrollment as expected, both as a monotherapy and in combination with pembrolizumab.
Previous wording
•On July 20, 2026, Jason O’Byrne, MBA, our Executive Vice President and Chief Financial Officer, informed us that he would be stepping down from his role, effective August 3, 2026. We have initiated a search for his successor. Additionally, on July 23, 2026, our Board of Directors appointed Brent Sabatini, CPA, MBA, our Senior Vice President and Chief Accounting Officer, as our interim “principal financial officer.”
Current wording
•On October 5, 2026, we appointed Aziz Sawaf, MBEE, MBA, CFA, as our Executive Vice President and Chief Financial Officer.
Previous wording
•On April 7, 2026, Mark Eisner, MD, M.P.H., our Executive Vice President and Chief Medical Officer, informed us that he would be stepping down from his role, effective April 24, 2026. We have initiated a search for his successor.
Current wording
•On October 7, 2026, we appointed David Liu, M.D., Ph.D., as our Executive Vice President and Chief Medical Officer.
Previous wording
•On June 9, 2026, we appointed Timothy Coughlin, CPA to our Board of Directors and as Chair of the Audit Committee.
Current wording
•On October 27, 2026, we appointed Suzanne Topalian, M.D., to our Board of Directors and as a member of the Science and Technology Committee.
Previous wording
We have entered into collaboration, license and grant arrangements with various third parties. For details regarding these and other agreements, see Note 4—Grant Agreements and Note 5—Collaboration and License Agreements to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and Note 6—Collaboration and License Agreements to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
We have entered into collaboration, license and grant arrangements with various third parties. For details regarding these and other agreements, see Note 4—Grant Agreements and Note 5—Collaboration and License Agreements to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and Note 5—Grant Agreementsand Note 6—Collaboration and License Agreements to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Grant revenue is comprised of revenue derived from grant agreements with government-sponsored and private organizations.
Current wording
Grant revenue is comprised of revenue derived from grant agreements with private organizations.
Previous wording
Our selling, general and administrative expenses consist primarily of personnel-related expenses for personnel in executive, finance and other administrative functions, facilities and other allocated expenses, other expenses for outside professional services, including legal, audit and accounting services, insurance costs and change in fair value of certain contingent consideration obligations arising from business acquisitions. Personnel-related expenses consist of salaries, benefits and stock-based compensation. In the long-term as we advance our research and development programs toward potential commercialization, we expect our selling, general, and administrative expenses to increase in absolute dollars to support commercialization activities and related expansion in research and development activities.
Current wording
Our selling, general and administrative expenses consist primarily of personnel-related expenses for personnel in executive, finance and other administrative functions, facilities and other allocated expenses, other expenses for outside professional services, including legal, audit and accounting services, insurance costs. Personnel-related expenses consist of salaries, benefits and stock-based compensation. In the long-term as we advance our research and development programs toward potential commercialization, we expect our selling, general, and administrative expenses to increase in absolute dollars to support commercialization activities and related expansion in research and development activities.
Previous wording
Change in fair value of equity investments consists of the remeasurement of our investment in Brii Biosciences Limited’s, or Brii Bio Parent, ordinary shares based on the quoted market price at each reporting date.
Current wording
Change in fair value of equity investments consists of the remeasurement of our investment in Brii Biosciences Limited’s, or Brii Bio Parent’s, ordinary shares based on the quoted market price at each reporting date.
Previous wording
Other (expense) income, net consists of gains and losses from foreign currency transactions and investment management expenses.
Current wording
Other expense, net consists of gains and losses from foreign currency transactions and investment management expenses.
Previous wording
Provision for income taxes consists primarily of income taxes on our domestic and foreign operations.
Current wording
Benefit from (provision for) income taxes consists primarily of income taxes on our domestic and foreign operations.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of the Three and Nine Months Ended September 30, 2026 and 2025
Previous wording
The increase in license and collaboration revenue for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to the recognition of $239.3 million in license and collaboration revenue related to the upfront payment received under our collaboration and license agreement with Astellas (Astellas Collaboration Agreement).
Current wording
The decrease in license and collaboration revenue for the three months ended September 30, 2026 compared to the same period in 2025 was nominal. The increase in license and collaboration revenue for the nine months ended September 30, 2026 compared to the same period in 2025 was primarily due to the recognition of $239.3 million in license and collaboration revenue related to the upfront payment received under our collaboration and license agreement with Astellas (Astellas Collaboration Agreement).
Previous wording
The decrease in other revenue for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to lower revenue recognized in connection with option-expiration and the sale of clinical supply to Brii Biosciences Limited (Brii Bio Parent).
Current wording
There was no other revenue for the three months ended September 30, 2026 and 2025. The decrease in other revenue for the nine months ended September 30, 2026 compared to the same periods in 2025 was primarily due to one-time nonrecurring revenue recognized in the second quarter of 2025 in connection with option-expiration and the sale of clinical supply to Brii Bio Parent.
Previous wording
•lower license, collaborations and contingent consideration expenses primarily due to a $30.0 million expense recognized in the first quarter of 2025 in connection with the Restated Alnylam Agreement and a milestone payment triggered by the enrollment of the first patient in the Phase 3 ECLIPSE registrational program for CHD, as well as lower contingent consideration expense in 2026 related to potential future milestone payments in connection with our CHD program. The decrease was partially offset by a $48.0 million milestone payment to Sanofi after the closing of the Astellas Collaboration Agreement in the second quarter of 2026;
Current wording
•lower license, collaborations and contingent consideration expenses primarily due to a $75.0 million milestone payment due upon VIR-5525 achieving “first in human dosing” in the third quarter of 2025, a $30.0 million expense recognized in the first quarter of 2025 in connection with the Restated Alnylam Agreement, as well as lower contingent consideration expense in 2026 related to potential future milestone payments in connection with our CHD program and higher cost reimbursements in 2026 in connection with our collaboration with Astellas and Norgine. The decrease was partially offset by a $48.0 million payment to Sanofi made after the closing of the Astellas Collaboration Agreement in the second quarter of 2026;
Previous wording
•higher contract manufacturing attributable to PPQ batches for our CHD program and increased manufacturing activities supporting the advancement of our oncology program;
Current wording
•higher contract manufacturing attributable to PPQ batches for our CHD program and increased manufacturing activities supporting the advancement of our oncology programs;
Previous wording
•higher clinical costs due to the advancement of our CHD and oncology programs.
Current wording
•higher clinical costs due to the advancement of our oncology and CHD programs.
Previous wording
The increase in selling, general and administrative expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to higher one-time advisory and legal fees in connection with the Astellas Collaboration Agreement.
Current wording
The increase in selling, general and administrative expenses for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was primarily due to higher advisory and legal fees.
Previous wording
The change in restructuring, long-lived assets impairment and related charges for the three and six months ended June 30, 2026 compared to the same periods in 2025 was nominal.
Current wording
The change in restructuring, long-lived assets impairment and related charges for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was nominal.
Previous wording
Our equity investment consisted solely of shares of Brii Bio Parent, which is a marketable equity investment and remeasured to fair value at each reporting date. For the three and six months ended June 30, 2026, we recognized an unrealized loss of $1.7 million and $1.9 million due to the change in fair value, respectively, compared to an unrealized loss of $3.4 million and unrealized gain of $3.0 million for the same periods in 2025, respectively.
Current wording
Our equity investment consisted solely of shares of Brii Bio Parent, which is a marketable equity investment and remeasured to fair value at each reporting date. For the three and nine months ended September 30, 2026, we recognized an unrealized loss of $0.4 million and $2.3 million due to the change in fair value, respectively, compared to an unrealized gain of $1.3 million and $4.3 million for the same periods in 2025, respectively.
Previous wording
The decrease in interest income for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to lower interest rates.
Current wording
The change in interest income for the three months ended September 30, 2026 compared to the same period in 2025 was nominal. The decrease in interest income for the nine months ended September 30, 2026 compared to the same period in 2025 was primarily due to lower cash balances and lower interest rates.
Previous wording
The change in other (expense) income, net for the three and six months ended June 30, 2026 compared to the same periods in 2025 was nominal.
Current wording
The change in other expense, net for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was nominal.
Previous wording
The provision for income taxes for the three and six months ended June 30, 2026 compared to the same periods in 2025 was nominal.
Current wording
The change in benefit from (provision for) income taxes for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was nominal.
Previous wording
To date, we have financed our operations primarily through sales of our common stock from our initial public offering and subsequent follow-on offering, sales of our convertible preferred securities, and payments received under our grant and collaboration agreements. As of June 30, 2026, we had approximately $1.01 billion in cash, cash equivalents, and investments and approximately $8.9 million in restricted cash and cash equivalents. As of June 30, 2026, our accumulated deficit was $1.2 billion.
Current wording
To date, we have financed our operations primarily through sales of our common stock from our initial public offering and subsequent follow-on offering, sales of our convertible preferred securities, and payments received under our grant and collaboration agreements. As of September 30, 2026, we had approximately $901.3 million in cash, cash equivalents, and investments and approximately $8.8 million in restricted cash and cash equivalents. As of September 30, 2026, our accumulated deficit was $1.3 billion.
Previous wording
In November 2023, we entered into a sales agreement (Sales Agreement) with Cowen and Company, LLC, as sales agent (TD Cowen), pursuant to which we may from time to time offer and sell shares of our common stock for an aggregate offering price of up to $300.0 million, through or to TD Cowen, acting as sales agent or principal. The shares will be offered and sold under the 2023 Shelf Registration Statement. We will pay TD Cowen a commission of up to 3.0% of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide TD Cowen with customary indemnification and contribution rights. As of June 30, 2026, no shares have been issued under the Sales Agreement. The Sales Agreement will expire in November 2026.
Current wording
In November 2023, we entered into a sales agreement (Sales Agreement) with Cowen and Company, LLC, as sales agent (TD Cowen), pursuant to which we may from time to time offer and sell shares of our common stock for an aggregate offering price of up to $300.0 million, through or to TD Cowen, acting as sales agent or principal. The shares will be offered and sold under the 2023 Shelf Registration Statement. We will pay TD Cowen a commission of up to 3.0% of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide TD Cowen with customary indemnification and contribution rights. As of September 30, 2026, no shares have been issued under the Sales Agreement. The Sales Agreement expired in November 2026.
Previous wording
Our primary operating lease arrangements are for office and laboratory spaces located in California and Switzerland with contractual lease periods expiring between 2033 and 2035. As of June 30, 2026, we expect to make total lease payments of approximately $114.2 million through 2035.
Current wording
Our primary operating lease arrangements are for office and laboratory spaces located in California and Switzerland with contractual lease periods expiring between 2033 and 2035. As of September 30, 2026, we expect to make total lease payments of approximately $110.4 million through 2035.
Previous wording
To date, we have entered into collaboration, license and acquisition agreements where the payment obligations are contingent upon future events such as our achievement of specified development, regulatory and commercial milestones, and we are required to make royalty payments in connection with the sale of products developed under those agreements. For additional information regarding these agreements, including our payment obligations thereunder, see Note 5—Collaboration and License Agreements to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and Note 6—Collaboration and License Agreements to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. For information related to our future commitments under our facilities and manufacturing agreements. see Note 7—Commitments and Contingenciesto our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and Note 10—Commitments and Contingencies to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
To date, we have entered into collaboration, license and acquisition agreements where the payment obligations are contingent upon future events such as our achievement of specified development, regulatory and commercial milestones, and we are required to make royalty payments in connection with the sale of products developed under those agreements. For additional information regarding these agreements, including our payment obligations thereunder, see Note 5—Collaboration and License Agreements to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and Note 6—Collaboration and License Agreements to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. For information related to our future commitments under our facilities and manufacturing agreements, see Note 7—Commitments and Contingenciesto our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, and Note 9—Leasesand Note 10—Commitments and Contingencies to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Cash used in operating activities is derived by adjusting our net income (loss) for non-cash items and changes in operating assets and liabilities. Cash used in operating activities during the six months ended June 30, 2026 decreased compared to the same period in 2025 primarily due to $240.0 million upfront payment received under the Astellas Collaboration Agreement, partially offset by a $48.0 million payment to Sanofi after the closing of the Astellas Collaboration Agreement and increase in payments for contract manufacturing and clinical costs related to the advancement of our CHD and oncology programs.
Current wording
Cash flows from operating activities is derived by adjusting our net income (loss) for non-cash items and changes in operating assets and liabilities. Cash used in operating activities during the nine months ended September 30, 2026 decreased compared to the same period in 2025 primarily due to the $240.0 million upfront payment received in 2026 under the Astellas Collaboration Agreement and milestone payments made in 2025 related to the first patient dosed in Phase 1 study evaluating VIR-5525 and the enrollment of the first patient in ECLIPSE registrational program for CHD, partially offset by a $48.0 million payment to Sanofi in 2026 after the closing of the Astellas Collaboration Agreement and increase in payments for contract manufacturing and clinical costs related to the advancement of our CHD and oncology programs.
Previous wording
Cash used in investing activities during the six months ended June 30, 2026 increased compared to the same period in 2025 primarily due to lower cash provided by maturities and sales of investment, net of investment purchases. Cash used in investing activities during the six months ended June 30, 2026 was primarily related to purchases of investments of $510.5 million, partially offset by $325.6 million in proceeds received from investments that matured or were sold. Cash provided by investing activities during the six months ended June 30, 2025 was primarily due to $553.2 million in proceeds received from investments that matured or were sold, partially offset by purchases of investments of $366.1 million.
Current wording
Net cash from investing activities shifted from cash provided by investing activities in 2025 to cash used in investing activities in 2026. Cash used in investing activities during the nine months ended September 30, 2026 was primarily related to purchases of investments of $639.0 million, partially offset by $498.7 million in proceeds received from investments that matured or were sold. Cash provided by investing activities during the nine months ended September 30, 2025 was primarily due to $858.4 million in proceeds received from investments that matured or were sold, partially offset by purchases of investments of $630.5 million.
Previous wording
Cash provided by financing activities during the six months ended June 30, 2026 increased compared to the same period in 2025 primarily due to the issuance of our common stock in connection with our follow-on public offering of $162.2 million, and issuance of our common stock in connection with the Astellas Collaboration Agreement of $75.7 million.
Current wording
Cash provided by financing activities during the nine months ended September 30, 2026 increased compared to the same period in 2025 primarily due to the issuance of our common stock in connection with our follow-on public offering of $162.2 million and issuance of our common stock in connection with the Astellas Collaboration Agreement of $75.7 million.
Previous wording
There have been no significant changes in our critical accounting policies during the six months ended June 30, 2026, as compared with those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 other than disclosed below.
Current wording
There have been no significant changes in our critical accounting policies during the nine months ended September 30, 2026, as compared with those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 other than disclosed below.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•higher license, collaborations and contingent consideration expenses primarily due to a $48.0 million payment to Sanofi made after the closing of the Astellas Collaboration Agreement, partially offset by lower contingent consideration expense for the potential future milestone payments in connection with our CHD program and cost reimbursements in connection with our collaboration with Astellas and Norgine;
Previous report — wording carried elsewhere
•higher contract manufacturing primarily attributable to process performance qualification (PPQ) batches for our CHD program and increased manufacturing activities supporting the advancement of our oncology program;
Previous report — wording carried elsewhere
•higher clinical costs due to the advancement of our CHD and oncology programs.
Previous report — wording carried elsewhere
•lower personnel expenses associated with headcount reductions.