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Arbutus Biopharma Corporation (ABUS)
NASDAQ:ABUS

Arbutus Biopharma (ABUS) AI Stock Analysis

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Arbutus Biopharma

(NASDAQ:ABUS)

Rating:49Neutral
Price Target:
$3.50
▲(10.06%Upside)
Arbutus Biopharma's overall stock score reflects significant financial challenges and valuation concerns. While technical analysis suggests stability, the promising HBV treatment data is overshadowed by executive changes and legal issues, contributing to a cautious outlook.
Positive Factors
Financial Management
Arbutus ended 2024 with $123M in cash and highlighted a 'continued focus on efficient deployment of financial resources and personnel,' driving expectations for a significant reduction in cash burn in 2025 vs. 2024.
Leadership and Strategic Moves
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
Litigation Risks
Arbutus and partner Genevant expand their LNP legal activity against Moderna globally, introducing uncertainties related to the international legal proceedings.
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 (ABUS) vs. SPDR S&P 500 ETF (SPY)

Arbutus Biopharma Business Overview & Revenue Model

Company DescriptionArbutus 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 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 Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: -0.31%|
Next Earnings Date:Jul 31, 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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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 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
40
Negative
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
55
Neutral
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
35
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.40M6.17M18.14M39.02M10.99M6.91M
Gross Profit-3.25M4.79M-55.56M37.59M9.23M-40.57M
EBITDA-75.09M-68.40M-70.99M-61.86M-71.64M-57.81M
Net Income-76.57M-69.92M-72.85M-69.46M-77.35M-65.21M
Balance Sheet
Total Assets117.01M131.71M144.40M195.42M204.49M137.08M
Cash, Cash Equivalents and Short-Term Investments112.71M122.62M126.00M146.91M155.32M123.27M
Total Debt1.19M1.29M8.72M2.19M2.61M2.98M
Total Liabilities37.85M34.34M38.38M58.57M35.05M35.11M
Stockholders Equity79.16M97.37M106.02M136.85M169.44M101.97M
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 Flow22.45M22.95M50.77M-74.94M-12.68M-14.91M
Financing Cash Flow30.00M52.00M30.65M31.81M137.24M86.75M

Arbutus Biopharma Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.18
Price Trends
50DMA
3.35
Negative
100DMA
3.33
Negative
200DMA
3.49
Negative
Market Momentum
MACD
-0.05
Positive
RSI
39.87
Neutral
STOCH
13.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABUS, the sentiment is Negative. The current price of 3.18 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.35, and below the 200-day MA of 3.49, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$1.08B-15.59%-35.41%-12.26%
49
Neutral
$879.33M-63.56%270.02%32.69%
49
Neutral
$609.06M-79.02%-50.69%8.01%
46
Neutral
$574.35M-33.48%-25.88%-29.16%
46
Neutral
C$192.85M-4.25-8.56%2.91%13.52%-1.74%
45
Neutral
$660.11M-119.66%-551.08%
40
Underperform
$272.58M-60.45%6.99%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ABUS
Arbutus Biopharma
3.19
0.03
0.95%
XNCR
Xencor
8.30
-10.31
-55.40%
RCKT
Rocket Pharmaceuticals
2.59
-17.44
-87.07%
NUVB
Nuvation Bio
1.94
-0.99
-33.79%
PRAX
Praxis Precision Medicines
43.17
3.17
7.93%
ABCL
AbCellera Biologics
3.75
1.04
38.38%

Arbutus Biopharma Corporate Events

Business Operations and Strategy
Arbutus Biopharma Ends Partnership with Qilu Pharmaceutical
Neutral
Jun 25, 2025

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.

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.

Executive/Board ChangesShareholder Meetings
Arbutus Biopharma Holds Annual Shareholder Meeting
Neutral
May 23, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Arbutus Biopharma Unveils Promising HBV Treatment Data
Positive
May 7, 2025

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.

Executive/Board ChangesLegal Proceedings
Arbutus Biopharma Faces Executive Changes Amid Legal Battle
Negative
Apr 3, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025