Vir Biotechnology, Inc. (Nasdaq: VIR) announced a collaboration and license agreement with Gilead Sciences to discover and develop three novel dual-masked T-cell engager (TCE) candidates targeting solid tumor-associated antigens, according to a company press release.

Under the terms of the agreement, Vir Biotechnology will lead discovery, design and optimization of the three TCE candidates using its proprietary platforms, including its PRO-XTEN® masking technology and dAIsY™ protein engineering platform. Gilead will receive an exclusive license to nominate, develop, manufacture and commercialize the resulting candidates.

Vir Biotechnology is eligible to receive up to $135 million in upfront and near-term preclinical milestone payments. This consists of $90 million in upfront consideration — comprising $65 million in cash and a $25 million equity investment at a 30% premium — along with up to $45 million in potential near-term preclinical milestones. The company could also receive up to $1.74 billion in additional development, regulatory and commercial milestones, plus tiered royalties on net sales ranging from high single-digit to low double-digit percentages.

"This collaboration with Gilead provides an opportunity to generate multiple differentiated candidates aimed at difficult-to-address solid tumors and to expand the potential impact of our science, while also advancing our own clinical oncology portfolio," said Marianne De Backer, President and Chief Executive Officer of Vir Biotechnology.

Flavius Martin, Executive Vice President of Research at Gilead Sciences, said the company looks forward to combining its oncology development capabilities with Vir Biotechnology's discovery platforms.

PRO-XTEN® is a trademark of Amunix Pharmaceuticals, Inc., a Sanofi company, for which Vir Biotechnology holds exclusive rights in oncology and infectious disease.