Arbutus Biopharma (ABUS) AI Stock Analysis

• Market Cap: $666.51M
• Dividend Yield: N/A
• Average Volume (3M): 779.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -50.69%
• EPS Growth: 8.01%
• Country: US
• Employees: 44
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 191,527,130
• 10 Day Avg. Volume: 614,834
• 30 Day Avg. Volume: 779,396
• PEG Ratio: 1.11
• Price to Book (P/B): 8.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.43
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 21.66
• Enterprise Value/Gross Profit: -196.11
• Enterprise Value/Ebitda: -2.16
• 1Y Price Target: $5.00
• Price Target Upside: 42.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: $3.50 ▼(-0.28%Downside)

Arbutus Biopharma's overall stock score is driven by significant financial challenges, with negative profitability and cash flow issues. Technical analysis suggests a neutral short-term outlook, while valuation metrics highlight concerns about overvaluation. Positive developments in HBV treatment are promising but offset by executive turnover and legal uncertainties.

Positive Factors

Clinical Trial Progress

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.

Financial Strategy

Management estimates its cash holdings to sufficiently fund its operations through the first quarter of 2028, allowing for the full funding of the upcoming imdusiran Phase 2b trial.

Therapeutic Developments

Analyst affirms a buy rating for Arbutus Biopharma, indicating confidence in the company's therapeutic developments.

Negative Factors

Operational Risks

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

Restructuring Costs

Arbutus anticipates a one-time restructuring charge of ~$11M-$13M in 1Q25.

Trial Discontinuation

Arbutus has discontinued the planned IM-PROVE III Phase 2a trial of imdusiran plus anti-PD-L1 antibody durvalumab prior to initiation.

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 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 shows significant financial challenges with declining revenues, negative net profit margins, and poor cash flow efficiency. Despite a low debt-to-equity ratio, the consistent unprofitability and cash flow issues pose substantial risks.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.40M	6.17M	18.14M	39.02M	10.99M	6.91M
	Gross Profit
-3.25M	4.79M	-55.56M	37.59M	9.23M	-40.57M
	EBIT
-91.40M	-76.32M	-78.10M	-65.46M	-73.52M	-57.81M
	EBITDA
-75.09M	-68.40M	-70.99M	-61.86M	-71.64M	-57.81M
	Net Income Common Stockholders
-76.57M	-69.92M	-72.85M	-69.46M	-77.35M	-65.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.83M	122.62M	126.00M	146.91M	155.32M	123.27M
	Total Assets
105.53M	131.71M	144.40M	195.42M	204.49M	137.08M
	Total Debt
3.36M	1.29M	8.72M	2.19M	2.61M	2.98M
	Net Debt
-28.44M	-35.04M	-17.56M	-28.59M	-106.67M	-49.27M
	Total Liabilities
32.79M	34.34M	38.38M	58.57M	35.05M	35.11M
	Stockholders Equity
72.74M	97.37M	106.02M	136.85M	169.44M	101.97M
Cash Flow		Free Cash Flow
-44.53M	-65.03M	-86.94M	-35.87M	-68.34M	-51.67M
	Operating Cash Flow
-58.71M	-64.85M	-85.94M	-35.36M	-67.53M	-51.44M
	Investing Cash Flow
22.45M	22.95M	50.77M	-74.94M	-12.68M	-14.91M
	Financing Cash Flow
30.00M	52.00M	30.65M	31.81M	137.24M	86.75M

Arbutus Biopharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 3.51 is above the 20-day moving average (MA) of 3.31, above the 50-day MA of 3.30, and below the 200-day MA of 3.54, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 78.77 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
PRAX	54 Neutral	$907.64M	―	-63.56%	―	270.02%	32.69%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%
XNCR	52 Neutral	$686.80M	―	-33.48%	―	-25.88%	-29.16%
ABUS	50 Neutral	$666.51M	―	-79.02%	―	-50.69%	8.01%
ABCL	50 Neutral	$728.30M	―	-15.59%	―	-35.41%	-12.26%
NUVB	45 Neutral	$843.85M	―	-119.66%	―	―	-551.08%
RCKT	40 Underperform	$330.22M	―	-60.45%	―	―	6.99%

Arbutus Biopharma Corporate Events

Arbutus Biopharma Holds Annual Shareholder Meeting

On May 21, 2025, Arbutus Biopharma Corporation held its Annual General Meeting of Shareholders, where shareholders elected the company’s director nominees, approved executive compensation, and appointed Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are pivotal for Arbutus Biopharma’s governance and operational transparency, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (ABUS) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Arbutus Biopharma stock, see the ABUS Stock Forecast page.

Arbutus Biopharma Unveils Promising HBV Treatment Data

On May 7, 2025, Arbutus Biopharma presented data at the EASL Congress 2025, showcasing the potential of imdusiran, an RNAi therapeutic, and AB-101, an oral PD-L1 inhibitor, in treating chronic hepatitis B (cHBV). The late-breaker poster highlighted that imdusiran, when combined with VTP-300 and low dose nivolumab, achieved a functional cure in some cHBV patients. The Phase 1a/1b trial of AB-101 demonstrated safety and high receptor occupancy without liver dysfunction. These findings suggest promising advancements in HBV treatment, potentially impacting Arbutus’s market position and offering hope for stakeholders in addressing the significant unmet medical need of cHBV.

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.