Vir Biotechnology Inc. (NASDAQ: VIR) announced the completion of its global collaboration agreement with Astellas following regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act. The partnership focuses on developing VIR-5500, a prostate cancer treatment targeting metastatic disease.

Under the financial terms, Vir Biotechnology received a $240 million upfront payment and a $75 million equity investment at $10.36 per share. The company will also receive a $20 million near-term milestone payment and split U.S. profits equally with Astellas. Additional development, regulatory and sales milestones could total up to $1.37 billion, along with tiered royalties on international sales.

The collaboration will co-develop and co-commercialize VIR-5500, with Astellas leading U.S. commercialization while Vir Biotechnology retains co-promotion rights. Astellas obtained exclusive rights to commercialize the treatment outside the United States.

VIR-5500 is currently in a Phase 1 clinical trial for metastatic castration-resistant prostate cancer. The treatment uses dual-masked T-cell engager technology designed to target prostate-specific membrane antigen while remaining inactive until reaching the tumor environment.

According to the press release, VIR-5500 represents the only dual-masked PSMA-targeting T-cell engager in clinical evaluation. The technology aims to reduce toxicity associated with traditional T-cell engagers by confining activity to tumor sites.

A portion of the collaboration proceeds will be shared with Sanofi under existing licensing agreements, the company stated.