Vir Biotechnology downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Eric Joseph downgraded Vir Biotechnology to Neutral from Overweight with a price target of $9, down from $23. The analyst is incrementally cautious on the breadth of the tobevibart plus elebsiran combination’s potential, particularly in cirrhotic patients constituting 40% of the indication. The firm is somewhat more cautious that a peg-IFN-free regimen can evoke a compelling functional cure rate, challenging both success and market penetration assumptions. With lower conviction in Vir’ss viral hepatitis franchise, JPMorgan has growing concerns that the value accretive potential from related Phase 2 trial updates or progress from the earlier stage pipeline can offset the company’s cash burn over next 12 months.