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Arbutus Biopharma Corporation (ABUS)
NASDAQ:ABUS
Top Page
Arbutus Biopharma
(NASDAQ:ABUS)
52Neutral
Positive Factors
Financial Management
Arbutus ended 2024 with $123M in cash and highlighted a 'continued focus on efficient deployment of financial resources and personnel.'
Management and Leadership
The appointment of Lindsay Androski as the new CEO is seen as a strategic move, given her focus on LNP litigation.
Therapeutic Developments
The initiation of the new Phase 2b trial is seen as a major milestone for Arbutus, reinforcing the positive outlook for the company's future developments.
Negative Factors
Clinical Trials
Arbutus has discontinued the planned IM-PROVE III Phase 2a trial of imdusiran plus anti-PD-L1 antibody durvalumab prior to initiation.
Legal Challenges
Arbutus and partner Genevant expand their LNP legal activity against Moderna globally.
Restructuring Costs
Arbutus anticipates a one-time restructuring charge of ~$11M-$13M in 1Q25.
Arbutus Biopharma (ABUS) vs. S&P 500 (SPY)
Market Cap
$668.27M
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth-65.98%
EPS Growth14.00%
CountryUS
Employees44
SectorHealthcare
Sector Strength62
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.38
Shares Outstanding191,480,200
10 Day Avg. Volume1,019,905
30 Day Avg. Volume1,073,294
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)92.19
Price to Cash Flow (P/CF)-7.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside42.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Arbutus Biopharma Business Overview & Revenue Model
Company DescriptionArbutus Biopharma Corporation (ABUS) is a biopharmaceutical company focused on discovering, developing, and commercializing therapies for the treatment of chronic hepatitis B virus (HBV) infection. The company's primary objective is to develop a cure for HBV by leveraging its expertise in antiviral drug development and delivery. Arbutus Biopharma's core products include proprietary HBV RNA interference (RNAi) therapeutics and small molecule antiviral agents.
How the Company Makes MoneyArbutus Biopharma makes money primarily through the development and commercialization of its therapeutic products aimed at treating chronic hepatitis B virus infection. The company's revenue streams include potential milestone and royalty payments from strategic collaborations and licensing agreements with other pharmaceutical companies. Additionally, Arbutus may earn revenue from government grants and research funding to support its drug development activities. The company also benefits from partnerships that help advance its product pipeline and bring therapies to market, contributing to its financial growth.
Arbutus Biopharma Financial Statement Overview
Summary
Arbutus Biopharma faces significant financial challenges with declining revenues, ongoing losses, and negative cash flows. Despite a manageable debt level, consistent unprofitability and cash flow issues present substantial risks. The need for strategic improvements to stabilize operations is evident.Income Statement
Arbutus Biopharma's income statement shows a declining revenue trend with gross profit margins fluctuating significantly. The company has maintained negative net profit margins, indicating consistent unprofitability. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Although revenue grew slightly in 2020, the overall revenue trajectory is downward, with substantial losses impacting profitability.40
Negative
Balance Sheet
The balance sheet of Arbutus Biopharma reveals a relatively low debt-to-equity ratio, indicating limited leverage. However, the company's return on equity is negative due to ongoing losses, which is a concern for investors. The equity ratio is moderate, suggesting a balanced asset structure, but the continuous decline in equity due to losses poses risks to financial stability.55
Neutral
Cash Flow
Arbutus Biopharma's cash flow statements highlight negative free cash flow, which has worsened over time, pointing to cash flow challenges. The operating cash flow consistently trails net income, indicating poor cash conversion efficiency. The free cash flow to net income ratio remains negative, suggesting difficulties in generating cash from operations.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.17M | 18.14M | 39.02M | 10.99M | 6.91M | Gross Profit |
| 6.17M | -55.56M | 37.59M | 9.23M | -40.57M | EBIT |
| -76.32M | -78.10M | -65.46M | -73.52M | -57.81M | EBITDA |
| -68.40M | -70.99M | -61.86M | -71.64M | -57.81M | Net Income Common Stockholders |
| -69.92M | -72.85M | -69.46M | -77.35M | -65.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 122.62M | 126.00M | 146.91M | 155.32M | 123.27M | Total Assets |
| 131.71M | 144.40M | 195.42M | 204.49M | 137.08M | Total Debt |
| 1.29M | 8.72M | 2.19M | 2.61M | 2.98M | Net Debt |
| -35.04M | -17.56M | -28.59M | -106.67M | -49.27M | Total Liabilities |
| 34.34M | 38.38M | 58.57M | 35.05M | 35.11M | Stockholders Equity |
| 97.37M | 106.02M | 136.85M | 169.44M | 101.97M |
| Cash Flow | Free Cash Flow | |||
| -64.85M | -86.94M | -35.87M | -68.34M | -51.67M | Operating Cash Flow |
| -64.85M | -85.94M | -35.36M | -67.53M | -51.44M | Investing Cash Flow |
| 22.95M | 50.77M | -74.94M | -12.68M | -14.91M | Financing Cash Flow |
| 52.00M | 30.65M | 31.81M | 137.24M | 86.75M |
Arbutus Biopharma Technical Analysis
Positive
3.51
Price Trends
3.35
Positive
3.40
Positive
3.59
Negative
Market Momentum
0.03
Negative
57.44
Neutral
81.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABUS, the sentiment is Positive. The current price of 3.51 is above the 20-day moving average (MA) of 3.32, above the 50-day MA of 3.35, and below the 200-day MA of 3.59, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 81.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABUS.
Arbutus Biopharma Risk Analysis
Arbutus Biopharma disclosed 39 risk factors in its most recent earnings report. Arbutus Biopharma reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arbutus Biopharma Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $138.58B | 290.93 | 2.28% | 2.79% | 6.16% | -91.54% | |
68 Neutral | $6.01B | 26.21 | 19.71% | ― | 52.97% | ― | |
64 Neutral | $124.48B | ― | -3.15% | ― | 11.64% | -114.72% | |
52 Neutral | $668.27M | ― | -68.76% | ― | -65.98% | 14.00% | |
49 Neutral | $4.80B | ― | -93.03% | ― | -10.48% | -18.79% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
48 Neutral | $10.48B | ― | -28.77% | ― | -52.75% | 25.00% |
* Healthcare Sector Average
Performance Comparison
ABUS
Arbutus Biopharma
3.51
0.51
17.00%
GILD
Gilead Sciences
111.89
44.86
66.93%
IONS
Ionis Pharmaceuticals
28.71
-14.12
-32.97%
VRTX
Vertex Pharmaceuticals
483.49
79.48
19.67%
SRPT
Sarepta Therapeutics
62.47
-63.32
-50.34%
MRNA
Moderna
27.72
-74.55
-72.90%
Arbutus Biopharma Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 4.78% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong financial positioning and promising clinical trial data for HBV treatments. However, ongoing legal challenges and high operational cash burn present concerns.Highlights
Strong Financial Position
Arbutus ended Q3 2024 with $131 million in cash, sufficient to fund operations into Q4 2026. A $44 million net proceeds from common shares issuance offset $54.5 million in operational cash usage.
Promising Clinical Data for Hepatitis B Treatment
Imdusiran showed promising results in reducing surface antigen levels in HBV patients. In Cohort A1 of the IM-PROVE I trial, 33% of patients achieved surface antigen loss sustained at 24 weeks post-treatment, with 67% of those with baseline less than 1,000 IU/mL maintaining loss.
Upcoming Data Presentations
Upcoming presentations at the Liver Meeting 2024 and AASLD will showcase additional data from ongoing HBV trials, indicating continued progress and interest in Arbutus' research.
Lowlights
Limited Advancement in Legal Proceedings
Litigation with Moderna and Pfizer/BioNTech over LNP intellectual property is ongoing, with trial dates set for late 2024 and 2025, indicating prolonged legal battles.
High Cash Burn Rate
The company reported a high cash burn of $54.5 million in operations for the first half of 2024, which may necessitate further financing activities to sustain long-term operations.
Company Guidance
In the third quarter 2024 earnings call for Arbutus Biopharma, the company provided several key metrics and updates on their ongoing efforts to develop a functional cure for chronic hepatitis B (HBV). They reported having approximately $131 million in cash and investments, with a projected cash burn for 2024 between $63 million and $67 million, ensuring their financial runway extends into the fourth quarter of 2026. The company is advancing their RNAi therapeutic imdusiran through Phase IIa trials, IM-PROVE I and II, which have shown promising results, such as a 33% surface antigen loss in Cohort A1 and 67% in patients with baseline antigen levels below 1,000 IU/mL. Moreover, they are progressing with their AB-101 clinical trial, with evidence of dose-dependent receptor occupancy in Phase Ia/Ib, and anticipate reporting preliminary HBV patient data in the first half of next year. The litigation with Moderna and Pfizer/BioNTech is ongoing, with a trial date set for September 2025 and a Markman hearing on December 18, 2024.Arbutus Biopharma Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Arbutus Biopharma Overhauls Board and Appoints New CEO
Neutral
Feb 25, 2025
On February 24, 2025, all members of Arbutus Biopharma’s Board of Directors resigned, and five new directors were appointed, including Lindsay Androski as the new CEO. These changes are intended to refocus the company on advancing its pipeline and maximizing contributions to LNP delivery technology, with an expectation of delivering greater value to shareholders and patients. The company will temporarily pause participation in investor meetings while reviewing development plans for its hepatitis B programs.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.