Vir’s stock gains 10% after announcing new flu contract with the U.S.

Shares of Vir Biotechnology Inc. were up 10.2% in premarket trading on Tuesday after the company said it received a contract from the U.S. government that is worth up $1 billion to develop treatments for the flu and other “infectious disease threats.” As part of the agreement, the Biomedical Advanced Research and Development Authority is investing $55 million into the development of a prophylactic monoclonal antibody against seasonal and pandemic flu. Vir’s stock is down 52.3% this year, while the broader S&P 500 has declined 22.8%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.