Shares of Vir Biotechnology, Inc. (VIR) surged 6.10% in pre-market trading on Monday, as investors reacted to a positive analyst rating and potential benefits from President Trump's drug pricing plan. The biotechnology company, which focuses on treating and preventing serious infectious diseases, saw its stock climb amid a broader focus on the healthcare sector.
Needham analyst Joseph Stringer reaffirmed his Buy rating on Vir Biotechnology, setting a price target of $14.00. This vote of confidence from a respected Wall Street firm likely contributed to the stock's upward momentum. Analysts' optimistic outlook often signals potential growth opportunities and can influence investor sentiment.
Adding to the positive market reaction, President Donald Trump announced plans to cut prescription drug prices by 59%. While specific details were not provided, Trump mentioned he would sign an executive order to pursue "most favored nation" pricing or international reference pricing. This move could potentially benefit companies like Vir Biotechnology, especially if it leads to increased demand for cost-effective treatments and therapies. However, the full impact of such a policy on individual biotech firms remains to be seen and will depend on the final implementation of the plan.
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