Boehringer Ingelheim has taken an option to buy all the shares of ViraTherapeutics, an Austrian biopharma that specializes in developing immunotherapy drugs based on oncolytic viruses.

The total transaction value of €210 million is based on an option and share purchase agreement that the two companies signed in August 2016.

ViraTherapeutics’ lead candidate is VSV-GP (Vesicular Stomatitis Virus (VSV) with modified glycoprotein (GP), which is being investigated alone and in combination with other therapies. VSV-GP has shown promising results in preclinical models, especially in combination with key immune modulatory principles that Boehringer is developing.

“The acquisition of ViraTherapeutics with its exciting oncolytic virus platform is the conclusion of a trusting and close cooperation over two years,” said Heinz Schwer, CEO of ViraTherapeutics. “We are highly optimistic that our VSV-based development programs and technology will complement Boehringer Ingelheim’s immuno-oncology franchise and will serve as a source of innovative, new treatment options for patients living with cancer.”

Oncolytic viral therapy has two modes of action. First, the virus specifically replicates in and kills cancer cells. Second, viral infection stimulates the immune system to recognize and kill the cancer cells, further enhancing tumor control.