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WARMINSTER, Pa. - Arbutus Biopharma Corporation (NASDAQ:ABUS), currently valued at $645 million, has regained full global rights to its lead hepatitis B compound imdusiran after mutually agreeing with Qilu Pharmaceutical to end their strategic partnership for Greater China markets, according to a press release statement issued Wednesday. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 6.01x.
The companies have concluded their collaboration that began in 2021 for the development, manufacturing and commercialization of imdusiran in mainland China, Hong Kong, Macau and Taiwan. The decision comes amid Qilu’s pipeline reprioritization efforts and Arbutus’ focus on advancing its pipeline efficiently. While the company reported revenue of $6.4 million in the last twelve months, InvestingPro analysis indicates challenging profitability metrics, with analysts not expecting profitability this year. Get the full financial picture with InvestingPro’s comprehensive research report, available along with 8 additional key ProTips.
"We are thrilled to once again hold global rights for imdusiran," said Lindsay Androski, President and CEO of Arbutus Biopharma.
Arbutus also announced the formation of a new Scientific Advisory Board comprising five hepatitis B experts with experience in late-stage clinical trials: Drs. Jordan Feld, Edward Gane, Anna Lok, Mark Sulkowski, and Man-Fung Yuen.
Imdusiran is an RNAi therapeutic designed to reduce all hepatitis B viral proteins and antigens, potentially enabling the immune system to control the virus. The company reports that across its Phase 2a clinical trials, eight patients have achieved functional cure and were able to discontinue all therapies including nucleos(t)ide analogue treatment.
Two of these patients received no interferon as part of their treatment, while seven had baseline hepatitis B surface antigen levels below 1000 IU/mL.
Chronic hepatitis B affects over 250 million people worldwide and causes approximately 1.1 million deaths annually from related complications, despite available vaccines and current treatment options.
Arbutus Biopharma is also developing an oral PD-1 inhibitor (AB-101) for chronic hepatitis B infection.
In other recent news, Arbutus Biopharma concluded 2024 with a cash position of $123 million, highlighting its focus on efficient financial resource management. The company announced significant organizational changes, including a 57% reduction in its workforce to 19 employees and the discontinuation of its at-the-market equity facility. Arbutus also halted its research and development activities, steps that are expected to decrease its cash burn in 2025. Additionally, the company is preparing for a one-time restructuring charge between $11 million and $13 million, which will be recorded in the first quarter of 2025.
JMP Securities analyst Roy Buchanan maintained a Market Outperform rating on Arbutus Biopharma, with a price target of $5. Buchanan’s analysis takes into account the company’s recent strategic moves to streamline operations and reduce costs. These developments have led to updated financial estimates from JMP Securities, reflecting the anticipated improvements in Arbutus’s financial standing.
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