Arbutus Biopharma (ABUS) AI Stock Analysis

• Market Cap: $639.54M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -65.98%
• EPS Growth: 14.00%
• Country: US
• Employees: 44
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -0.38
• Shares Outstanding: 191,480,200
• 10 Day Avg. Volume: 1,146,940
• 30 Day Avg. Volume: 1,136,171
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 51.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Arbutus Biopharma is currently facing substantial financial and operational challenges. The declining financial performance, coupled with technical indicators pointing to potential volatility and a negative valuation outlook, weigh heavily on the stock's prospects. Additionally, recent executive changes and legal issues further contribute to the risk profile, resulting in a below-average stock score.

Positive Factors

Management Strategy

The appointment of Lindsay Androski as the new CEO is seen as a strategic move, given her focus on LNP litigation.

Therapeutic Developments

Analyst recommends a Buy rating, affirming confidence in the potential of imdusiran as a core component for achieving a functional cure in HBV.

Negative Factors

Legal Challenges

Arbutus and partner Genevant expand their LNP legal activity against Moderna globally.

Operational Risks

Key risks include failed or equivocal studies, unforeseen safety or tolerability issues, meaningful delays, and the inability to sufficiently fund operations.

Arbutus Biopharma Business Overview & Revenue Model

Company Description

Arbutus 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 Money

Arbutus 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 3.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABUS, the sentiment is Neutral. The current price of 3.29 is above the 20-day moving average (MA) of 3.25, below the 50-day MA of 3.30, and below the 200-day MA of 3.60, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 83.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABUS.

Arbutus Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
ABCL	49 Neutral	$774.77M	―	-14.75%	―	-24.17%	-9.24%
PRAX	42 Neutral	$725.88M	―	-70.98%	―	249.53%	56.59%
ABUS	41 Neutral	$639.54M	―	-68.76%	―	-65.98%	14.00%
XNCR	40 Underperform	$763.81M	―	-34.74%	―	-36.72%	-64.37%
RCKT	40 Underperform	$792.26M	―	-54.14%	―	―	6.99%
NUVB	35 Underperform	$723.49M	―	-106.27%	―	―	-551.08%

Arbutus Biopharma Corporate Events

Arbutus Biopharma Faces Executive Changes Amid Legal Battle

Arbutus Biopharma Corporation announced the termination of two key executives, Karen Sims, Chief Medical Officer, and David Hastings, Chief Financial Officer, in March 2025. Both executives have entered into separation and consulting agreements with the company, allowing them to extend the exercise period of their stock options for up to a year post-termination. Additionally, Arbutus Biopharma is involved in a legal dispute with Moderna, Inc. over patent infringement related to Moderna’s COVID-19 vaccine, with the trial date moved to September 29, 2025.

Arbutus Biopharma Overhauls Board and Appoints New CEO

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.