Arbutus Biopharma (ABUS) AI Stock Analysis

• Market Cap: $794.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 116.64%
• EPS Growth: 47.93%
• Country: US
• Employees: 44
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 192,324,020
• 10 Day Avg. Volume: 1,167,480
• 30 Day Avg. Volume: 1,197,792
• 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: 0.97
• Enterprise Value/Revenue: 52.91
• Enterprise Value/Gross Profit: -243.48
• Enterprise Value/Ebitda: -17.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $4.00 ▼(-16.32% Downside)

The score is primarily constrained by weak financial performance (large losses, negative margins, declining revenue, and negative operating/free cash flow). Technicals are also soft with the price below key short- and mid-term moving averages and weak momentum indicators. Valuation is less supportive due to a negative P/E, and corporate events add uncertainty due to litigation and patent-related risks.

Positive Factors

Conservative capital structure (very low leverage)

A debt-to-equity of ~0.01 gives Arbutus financial flexibility and low fixed interest burden, important for a clinical-stage biotech. Low leverage reduces refinancing risk and allows management to prioritize R&D and litigation strategy without heavy debt servicing over the next 2-6 months.

Core LNP/RNAi technology validated by major vaccine use

Arbutus’s LNP/RNAi platform being central to approved COVID-19 vaccines demonstrates durable technical validation and commercial relevance. This underpins potential licensing, milestone and partnership value, and strengthens long-term strategic bargaining power despite active litigation.

Positive clinical signals for imdusiran

Meaningful discontinuation and sustained off-treatment responses in imdusiran trials indicate potential for a durable therapeutic benefit. If replicated, this reduces chronic treatment costs and improves commercial differentiation, materially de-risking the program over a multi-month horizon.

Negative Factors

Deeply negative profitability metrics

Extremely negative net and gross margins reflect persistent inability to generate product-level profits. For a clinical-stage company this points to sustained R&D spending and limited product revenue, increasing dependency on external financing and dilutive funding options over the medium term.

Negative cash flow and deteriorating FCF growth

Ongoing negative operating and free cash flow with a worsening FCF growth rate indicates rising cash burn and shrinking internal funding capacity. This elevates runway and dilution risk, limiting ability to advance multiple trials or absorb legal costs without securing external capital or partnerships.

Patent revocation increases litigation and revenue risk

An EPO revocation materially weakens Arbutus’s IP footing in Europe and could reduce leverage in licensing or damages claims versus major partners. This structural legal setback raises the probability of lower litigation recoveries, longer disputes, and potential revenue shortfalls from expected license/milestone streams.

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 collaboration agreements, government grants, and potential milestone payments from its partnerships. The company collaborates with larger pharmaceutical companies to co-develop its drug candidates, which can provide upfront payments, shared research costs, and milestone payments based on the achievement of development goals. Additionally, if any of its products receive regulatory approval and are commercialized, Arbutus would earn royalties on sales. Their revenue model is heavily dependent on the successful advancement of their clinical programs and the strategic partnerships they establish with industry players to enhance development capabilities and market reach.

Arbutus Biopharma Financial Statement Overview

Summary

Low profitability and cash generation drive the score: deeply negative net margin (-289.45%), negative gross margin, and declining revenue growth (-5.25%). Cash flow remains pressured with negative operating and free cash flow and worsening free cash flow growth (-24.75%). The balance sheet is helped by very low leverage (debt-to-equity 0.012), but negative ROE (-50.20%) underscores weak returns.

Income Statement

Arbutus Biopharma's income statement shows significant challenges with profitability. The TTM data reveals a negative net profit margin of -289.45%, indicating substantial losses relative to revenue. The gross profit margin is also negative, highlighting issues in covering production costs. Revenue growth is declining, with a negative growth rate of -5.25% in the TTM period, suggesting shrinking sales. These factors contribute to a low score, reflecting the company's struggle to generate profit and grow revenue.

Balance Sheet

The balance sheet indicates a relatively low debt-to-equity ratio of 0.012, suggesting limited leverage and a conservative capital structure. However, the return on equity is negative at -50.20%, reflecting poor profitability and returns for shareholders. The equity ratio is not explicitly provided, but the low debt levels imply a higher reliance on equity financing. Overall, the balance sheet shows financial stability in terms of low debt but highlights significant profitability challenges.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, indicating cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that cash outflows are closely aligned with net losses. The free cash flow growth rate is negative at -24.75% in the TTM period, indicating worsening cash flow conditions. These factors contribute to a low score, reflecting ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.61M	6.17M	18.14M	39.02M	10.99M	6.91M
Gross Profit	-3.17M	6.17M	18.14M	39.02M	10.99M	-40.57M
EBITDA	-44.65M	-68.40M	-70.99M	-61.86M	-71.64M	-57.76M
Net Income	-42.28M	-69.92M	-72.85M	-69.46M	-76.25M	-63.74M
Balance Sheet
Total Assets	97.71M	131.71M	144.40M	195.42M	204.49M	137.08M
Cash, Cash Equivalents and Short-Term Investments	93.70M	122.62M	126.00M	146.91M	155.32M	123.27M
Total Debt	922.00K	1.29M	8.72M	12.55M	18.91M	22.54M
Total Liabilities	20.31M	34.34M	38.38M	58.57M	35.05M	35.11M
Stockholders Equity	77.40M	97.37M	106.02M	136.85M	169.44M	101.97M
Cash Flow
Free Cash Flow	-45.36M	-65.03M	-86.94M	-35.87M	-68.34M	-51.67M
Operating Cash Flow	-45.27M	-64.85M	-85.94M	-35.36M	-67.53M	-51.44M
Investing Cash Flow	30.35M	22.95M	50.77M	-74.94M	-12.68M	-14.91M
Financing Cash Flow	5.50M	52.00M	30.65M	31.81M	137.24M	86.75M

Arbutus Biopharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.78
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.78 is above the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.48, and above the 200-day MA of 3.92, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 54.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABUS.

Arbutus Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRAX	60 Neutral	$8.61B	-24.33	-75.20%	―	364.98%	-25.33%
IMNM	58 Neutral	$2.72B	-8.33	-93.04%	―	-4.44%	63.58%
IMTX	56 Neutral	$1.28B	-8.73	-29.01%	―	-27.61%	-69.49%
GERN	52 Neutral	$874.55M	-11.40	-29.57%	―	522.13%	62.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SANA	51 Neutral	$1.18B	―	-96.11%	―	―	31.16%
ABUS	41 Neutral	$794.30M	-18.62	-45.88%	―	116.64%	47.93%

Arbutus Biopharma Corporate Events

Arbutus Biopharma Faces EPO Revocation in Moderna Dispute

On January 15, 2026, the European Patent Office’s Board of Appeal verbally revoked Arbutus Biopharma’s European patent EP 2279254 following opposition proceedings initiated in 2018 by affiliates of Moderna and Merck, overturning earlier decisions that had upheld an amended version of the patent. Arbutus, which plans to seek review by the EPO’s Enlarged Board of Appeal once a written decision is issued, indicated that the ruling is likely to affect its and licensee Genevant Sciences’ ongoing patent actions against Moderna in Switzerland and one of two cases before the Unified Patent Court, but emphasized that the decision—based on an EPO-specific “added matter” standard—should not impact the timing or potential outcome of its other ongoing infringement suits against Moderna in the United States, Japan, Canada, and another UPC case not involving the revoked patent, nor its U.S. litigation against Pfizer and BioNTech.

The most recent analyst rating on (ABUS) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Arbutus Biopharma stock, see the ABUS Stock Forecast page.

Arbutus Biopharma CEO Discusses Lawsuits Over LNP Technology

On December 11, 2025, Lindsay Androski, CEO of Arbutus Biopharma, presented at Roivant Sciences Ltd.’s Investor Day regarding ongoing lawsuits against Moderna, Pfizer, and BioNTech for using Arbutus’s patented LNP technology in COVID-19 vaccines. The litigation involves claims of patent infringement, with court hearings expected in 2026. Arbutus’s legal actions aim to secure compensation for the unauthorized use of their technology, which has been integral to the development of Moderna’s and Pfizer/BioNTech’s vaccines. The outcome of these lawsuits could significantly impact Arbutus’s financial position and its standing in the biotechnology sector.

The most recent analyst rating on (ABUS) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Arbutus Biopharma stock, see the ABUS Stock Forecast page.

Arbutus Biopharma Reports Strong Q3 Financial Results

On November 13, 2025, Arbutus Biopharma reported its third quarter financial results, highlighting a strong financial position with $93.7 million in cash and marketable securities. The company announced significant progress in its clinical trials for imdusiran, with 46% of Phase 2a patients meeting criteria to discontinue treatment and 94% of long-term follow-up patients remaining off treatment for over two years. Arbutus is also involved in ongoing litigation with Moderna and Pfizer/BioNTech over its LNP technology, with a favorable ruling in the Pfizer-BioNTech case and a trial against Moderna set for March 2026. Financially, the company reported a net loss of $7.7 million for the quarter, a decrease from the previous year, due to cost-cutting measures and a focus on advancing clinical development.

The most recent analyst rating on (ABUS) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Arbutus Biopharma stock, see the ABUS Stock Forecast page.