Arbutus Biopharma (ABUS) AI Stock Analysis

• Market Cap: $845.39M
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 53.23%
• EPS Growth: 35.32%
• Country: US
• Employees: 44
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 191,698,700
• 10 Day Avg. Volume: 1,168,308
• 30 Day Avg. Volume: 1,386,167
• PEG Ratio: 0.64
• Price to Book (P/B): 6.23
• Price to Sales (P/S): 98.35
• P/FCF Ratio: -9.33
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 32.53
• Enterprise Value/Gross Profit: 82.03
• Enterprise Value/Ebitda: -9.44
• 1Y Price Target: $3.50
• Price Target Upside: -20.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $3.50 ▼(-20.63% Downside)

Arbutus Biopharma's overall score is driven by significant financial challenges, despite positive corporate events and moderate technical momentum. The company's negative profitability and cash flow issues weigh heavily, while recent board changes and litigation prospects offer potential upside.

Positive Factors

Revenue Growth

The significant revenue growth in Q2 2025 indicates strong market demand and effective product positioning, enhancing long-term financial prospects.

Strategic Partnerships

Strategic partnerships provide substantial funding for R&D, enabling Arbutus to advance clinical trials and diversify revenue streams, supporting sustainable growth.

Board and Governance

The appointment of Dr. Sawhney strengthens governance and strategic oversight, potentially enhancing decision-making and corporate strategy execution.

Negative Factors

Profitability Issues

Ongoing profitability challenges indicate potential issues in cost management or pricing strategy, which could hinder long-term financial health and competitiveness.

Negative Cash Flows

Negative cash flows suggest operational inefficiencies and may limit the company's ability to invest in growth opportunities, impacting long-term sustainability.

Partnership Termination

The termination of the partnership with Qilu Pharmaceutical may disrupt strategic plans and revenue streams, potentially affecting market expansion and pipeline development.

Arbutus Biopharma Business Overview & Revenue Model

Company Description

Arbutus Biopharma Corporation, a biopharmaceutical company, develops novel therapeutics for chronic Hepatitis B virus (HBV) infection, SARS-CoV-2, and other coronaviruses in the United States. Its HBV product pipeline consists of AB-729, a proprietary subcutaneously delivered RNA interference product candidate, which in Phase Ia/Ib clinical trial targeted to hepatocytes that inhibits viral replication and reduces various HBV antigens using novel covalently conjugated N-acetylgalactosamine (GalNAc) delivery technology; and AB-836, an oral capsid inhibitor that suppresses HBV DNA replication. The company's research and development programs include AB-161, an oral HBV RNA destabilizer to destabilize HBV RNA, which leads in the reduction of HBsAg and other viral proteins; AB-101, an oral PD-L1 inhibitor to reawaken patients' HBV-specific immune response; and small molecule antiviral medicines to treat coronaviruses, including COVID-19. It has strategic alliance, licensing, and research collaboration agreements with Talon Therapeutics, Inc.; Gritstone Oncology, Inc.; Alnylam Pharmaceuticals, Inc.; Qilu Pharmaceuticals Co, Ltd.; Assembly Biosciences, Inc.; Acuitas Therapeutics, Inc.; and Antios Therapeutics, Inc. Arbutus Biopharma Corporation also has a clinical collaboration agreement with Vaccitech plc to evaluate a triple combination of AB-729 for the treatment of chronic HBV infection. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Warminster, Pennsylvania.

How the Company Makes Money

Arbutus Biopharma generates revenue primarily through the development and commercialization of its therapeutic products. The company engages in strategic partnerships and collaborations with other pharmaceutical companies, which may include upfront payments, milestone payments, and royalties on future sales of products developed in collaboration. These partnerships often provide substantial funding for research and development, allowing Arbutus to focus on advancing its clinical trials. Additionally, if any of Arbutus's products receive regulatory approval and are brought to market, the company stands to earn significant revenue from product sales. The company may also explore licensing opportunities for its technologies, further diversifying its revenue streams.

Arbutus Biopharma Financial Statement Overview

Summary

Arbutus Biopharma faces significant financial challenges, with persistent losses and negative cash flows. Despite a notable revenue growth rate, profitability issues and negative cash flows are concerning. The balance sheet remains stable with low leverage, providing some resilience.

Income Statement

Arbutus Biopharma's income statement reveals significant challenges. Despite a notable revenue growth rate of 140.76% in the TTM, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has also declined compared to previous periods, indicating potential issues in cost management or pricing strategy.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio remains stable, indicating a solid capital structure despite operational challenges.

Cash Flow

Cash flow analysis highlights a concerning trend with negative operating and free cash flows, although there is a slight improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. The free cash flow to net income ratio is slightly above 1, suggesting cash flow is aligned with net income despite being negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.42M	6.17M	18.14M	39.02M	10.99M	6.91M
Gross Profit	6.11M	4.79M	-55.56M	37.59M	9.23M	-40.57M
EBITDA	-53.12M	-68.40M	-70.99M	-61.86M	-71.64M	-57.81M
Net Income	-54.25M	-69.92M	-72.85M	-69.46M	-77.35M	-65.21M
Balance Sheet
Total Assets	103.27M	131.71M	144.40M	195.42M	204.49M	137.08M
Cash, Cash Equivalents and Short-Term Investments	98.09M	122.62M	126.00M	146.91M	155.32M	123.27M
Total Debt	5.00M	1.29M	8.72M	2.19M	2.61M	2.98M
Total Liabilities	20.29M	34.34M	38.38M	58.57M	35.05M	35.11M
Stockholders Equity	82.98M	97.37M	106.02M	136.85M	169.44M	101.97M
Cash Flow
Free Cash Flow	-60.28M	-65.03M	-86.94M	-35.87M	-68.34M	-51.67M
Operating Cash Flow	-60.19M	-64.85M	-85.94M	-35.36M	-67.53M	-51.44M
Investing Cash Flow	28.39M	22.95M	50.77M	-74.94M	-12.68M	-14.91M
Financing Cash Flow	6.43M	52.00M	30.65M	31.81M	137.24M	86.75M

Arbutus Biopharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.41 is above the 20-day moving average (MA) of 4.31, above the 50-day MA of 3.75, and above the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABUS.

Arbutus Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMNM	53 Neutral	1.01B	-3.76	-78.87%	―	16.74%	59.89%
ABUS	51 Neutral	$845.39M	―	-52.82%	―	53.23%	35.32%
GERN	49 Neutral	823.04M	-9.74	-33.91%	―	11877.28%	63.14%
IMTX	48 Neutral	935.94M	-11.01	-15.91%	―	83.36%	22.27%
PRAX	48 Neutral	1.10B	-4.27	-41.04%	―	338.45%	-19.64%
SANA	33 Underperform	864.06M	-3.14	―	―	―	7.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Arbutus Biopharma Corporate Events

Arbutus Biopharma Appoints New Board Member Amid Strong Q2

On August 4, 2025, Anuj Hasija resigned from Arbutus Biopharma‘s Board of Directors, with Dr. Roger Sawhney appointed as his replacement. Dr. Sawhney will also join the Audit and Corporate Governance and Nominating Committees. Arbutus reported strong financial results for the second quarter of 2025, with a significant increase in revenue due to the reacquisition of Greater China rights to imdusiran. The company is actively involved in ongoing patent infringement litigations against Moderna and Pfizer/BioNTech, seeking compensation for the use of its LNP technology.

Arbutus Biopharma Ends Partnership with Qilu Pharmaceutical

On June 20, 2025, Arbutus Biopharma and Qilu Pharmaceutical mutually agreed to terminate their strategic partnership for the development, manufacturing, and commercialization of imdusiran in Greater China and Taiwan, with all rights reverting to Arbutus. This decision aligns with Qilu’s pipeline reprioritization and Arbutus’ focus on advancing its own pipeline efficiently. Additionally, Arbutus announced the formation of a new Scientific Advisory Board, comprising globally recognized leaders in chronic hepatitis B virus treatment, to guide its strategic evaluation of its cHBV pipeline.