Arbutus Biopharma (ABUS) AI Stock Analysis

• Market Cap: $599.48M
• Dividend Yield: N/A
• Average Volume (3M): 808.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -50.69%
• EPS Growth: 8.01%
• Country: US
• Employees: 44
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 191,527,130
• 10 Day Avg. Volume: 827,660
• 30 Day Avg. Volume: 808,272
• PEG Ratio: 0.99
• Price to Book (P/B): 7.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.18
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 19.18
• Enterprise Value/Gross Profit: -173.68
• Enterprise Value/Ebitda: -1.92
• 1Y Price Target: $3.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.00 ▼(-4.76%Downside)

Arbutus Biopharma's stock score is driven by significant financial challenges and a neutral technical outlook. While recent corporate events show promise in HBV treatment developments, the company's valuation and ongoing financial difficulties weigh heavily on the overall score.

Positive Factors

Financial Stability

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.

Legal Proceedings

A positive outcome to the Markman hearing was viewed as favorable for Arbutus.

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

Key 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 candidates. The company's revenue streams include collaboration and licensing agreements with other pharmaceutical and biotechnology companies, which provide upfront payments, milestone payments, and potential royalties on product sales. Significant partnerships, such as those with Genevant Sciences Ltd. and other industry leaders, play a crucial role in providing the necessary financial backing and infrastructure to advance their drug development programs. Additionally, the company may receive government grants or funding from research institutions that support its innovative approaches to treating HBV and other viral infections.

Arbutus Biopharma Financial Statement Overview

Summary

Arbutus Biopharma faces significant financial challenges characterized by declining revenues, ongoing losses, and negative cash flows. Despite manageable debt levels, these issues present substantial risks and indicate a need for strategic improvements.

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	4.79M	-55.56M	37.59M	9.23M	-40.57M
EBITDA	-68.40M	-70.99M	-61.86M	-71.64M	-57.81M
Net Income	-69.92M	-72.85M	-69.46M	-77.35M	-65.21M
Balance Sheet
Total Assets	131.71M	144.40M	195.42M	204.49M	137.08M
Cash, Cash Equivalents and Short-Term Investments	122.62M	126.00M	146.91M	155.32M	123.27M
Total Debt	1.29M	8.72M	2.19M	2.61M	2.98M
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	-65.03M	-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: Negative
• Last Price: 3.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 3.15 is below the 20-day moving average (MA) of 3.20, below the 50-day MA of 3.30, and below the 200-day MA of 3.43, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 22.25 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
ABCL	59 Neutral	$1.34B	―	-15.59%	―	-35.41%	-12.26%
XNCR	55 Neutral	$638.40M	―	-33.48%	―	-25.88%	-29.16%
PRAX	55 Neutral	$1.10B	―	-63.56%	―	270.02%	32.69%
ABUS	52 Neutral	$599.48M	―	-79.02%	―	-50.69%	8.01%
Sector *	46 Neutral	C$195.87M	-3.29	-23.14%	1.84%	20.75%	-0.36%
NUVB	45 Neutral	$782.60M	―	-119.66%	―	―	-551.08%
RCKT	40 Underperform	$327.52M	―	-60.45%	―	―	6.99%

Arbutus Biopharma Corporate Events

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.

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 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.