Arbutus Biopharma Corporation (ABUS) Bundle
A Brief History of Arbutus Biopharma Corporation
Arbutus Biopharma Corporation, founded in 2003, has focused on developing innovative therapeutics for the treatment of viral diseases, particularly Hepatitis B virus (HBV). Over the years, the company has undergone significant transformations, including mergers, acquisitions, and strategic partnerships to enhance its research capabilities and product pipeline.
Company Milestones
- 2003: Arbutus Biopharma was established.
- 2014: Acquisition of Enantigen Therapeutics, which provided access to key HBV assets.
- 2018: Launch of ONPATTRO by Alnylam Pharmaceuticals, incorporating Arbutus’s LNP technology.
- 2020: Initiation of various clinical trials for HBV treatments.
- 2023: Streamlining operations to focus on core HBV product candidates.
- 2024: Continued development and prioritization of the HBV pipeline.
Financial Performance as of 2024
As of September 30, 2024, Arbutus Biopharma reported the following financial results:
| Financial Metric | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Total Revenue | $1,339 | $4,658 | $4,597 | $15,996 |
| Operating Expenses | $22,779 | $26,216 | $66,983 | $73,352 |
| Loss from Operations | $(21,440) | $(21,558) | $(62,386) | $(57,356) |
| Net Loss | $(19,717) | $(20,104) | $(57,388) | $(53,537) |
The company's revenue has decreased significantly year-over-year, primarily due to a reduction in license revenue and lower sales of ONPATTRO, leading to a net loss of $57.4 million for the nine months ended September 30, 2024.
Research and Development Focus
Research and development (R&D) expenses for the nine months ended September 30, 2024, were $45.2 million, down from $56.1 million in the same period of the previous year. This reduction is attributed to the discontinuation of several programs and a strategic focus on advancing the lead HBV product candidates.
Liquidity and Capital Resources
As of September 30, 2024, Arbutus Biopharma had cash, cash equivalents, and investments in marketable securities totaling $130.8 million, with no outstanding debt. The company believes it has sufficient resources to fund operations for at least the next 12 months.
Stockholder Equity and Share Issuance
As of September 30, 2024, total stockholders' equity was $106.9 million. The company has actively engaged in share issuance to bolster its financial position, with significant proceeds from the sale of common shares under an Open Market Sale Agreement.
Future Outlook
Looking ahead, Arbutus Biopharma is focused on advancing its clinical pipeline, particularly its HBV candidates, while managing its financial resources prudently to sustain operations and development efforts.
A Who Owns Arbutus Biopharma Corporation (ABUS)
Shareholder Composition
As of September 30, 2024, Arbutus Biopharma Corporation has 189,438,135 shares outstanding. The significant shareholders include institutional investors and corporate partners.
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Roivant Sciences Ltd. | Institutional Investor | Approximately 20,000,000 | 10.55% |
| Qilu Pharmaceutical Co., Ltd. | Corporate Partner | 3,579,952 | 1.89% |
| OMERS | Pension Fund | 20,000,000 | 10.55% |
| Other Institutional Investors | Various | Approximately 40,000,000 | 21.10% |
| Retail Investors | Individual Shareholders | Approximately 125,858,183 | 66.01% |
Recent Share Issuances
During the nine months ended September 30, 2024, Arbutus Biopharma issued a total of 16,499,999 common shares, generating net proceeds of approximately $44.1 million.
Stockholder Equity
The total stockholders' equity as of September 30, 2024, is reported to be $106,890,000, with the following breakdown:
| Category | Amount (in thousands USD) |
|---|---|
| Share Capital | $1,407,595 |
| Additional Paid-In Capital | $81,425 |
| Deficit | $(1,334,040) |
| Accumulated Other Comprehensive Loss | $(48,090) |
| Total Stockholders' Equity | $106,890 |
Financial Overview
For the nine months ended September 30, 2024, Arbutus Biopharma reported a net loss of $57,388,000. The revenue from collaborations and licenses amounted to $4,597,000 during the same period.
| Financial Metric | Amount (in thousands USD) |
|---|---|
| Total Revenue | $4,597 |
| Operating Expenses | $66,983 |
| Net Loss | $(57,388) |
| Cash and Cash Equivalents | $31,846 |
| Investments in Marketable Securities | $95,948 |
Recent Developments
As of November 5, 2024, Arbutus Biopharma had approximately 189,491,685 common shares outstanding. The company continues to focus on clinical development and has made strategic decisions to streamline its operations.
Arbutus Biopharma Corporation (ABUS) Mission Statement
Arbutus Biopharma Corporation is a clinical-stage biopharmaceutical company that focuses on developing innovative therapeutics for chronic hepatitis B virus (cHBV) infections. The company's mission is to leverage its extensive virology expertise to develop novel therapeutics that can potentially lead to a functional cure for patients suffering from this condition.
Core Values
The core values driving Arbutus include:
- Innovation: Committed to advancing science and technology in virology.
- Collaboration: Building partnerships that enhance research and development.
- Integrity: Upholding the highest ethical standards in all operations.
- Patient Focus: Prioritizing the needs and outcomes of patients in all initiatives.
Strategic Goals
Arbutus aims to:
- Develop and commercialize effective therapies for chronic hepatitis B.
- Expand its pipeline with additional product candidates targeting viral infections.
- Achieve sustainable financial growth through strategic partnerships and collaborations.
Financial Overview
As of September 30, 2024, Arbutus reported the following financial metrics:
| Financial Metric | Value (in thousands USD) |
|---|---|
| Cash and Cash Equivalents | 31,846 |
| Investments in Marketable Securities | 95,948 |
| Total Assets | 140,441 |
| Total Liabilities | 33,551 |
| Total Stockholders’ Equity | 106,890 |
| Net Loss (Nine Months Ended) | (57,388) |
| Research and Development Expenses | 45,227 |
| Revenue from Collaborations and Licenses | 2,861 |
Research and Development Pipeline
Arbutus is actively developing two primary product candidates:
- Imdusiran (AB-729): An RNAi therapeutic aimed at reducing HBsAg and boosting immune response in cHBV patients. Currently in Phase 2a clinical trials.
- AB-101: An oral PD-L1 inhibitor, also in clinical trials aimed at enhancing immune response.
Recent Developments
In August 2024, Arbutus announced a workforce reduction of 40% as part of a strategic shift to focus resources on the development of imdusiran and AB-101. This restructuring incurred a charge of approximately $3.6 million.
As of September 30, 2024, Arbutus had no outstanding debt and believed its cash and cash equivalents would be sufficient to fund operations through at least the fourth quarter of 2026.
Collaborations and Partnerships
Arbutus has established several collaborations that enhance its research capabilities:
- Collaboration with Qilu Pharmaceutical Co., Ltd.: Involves a $40 million upfront payment and potential milestone payments totaling up to $245 million.
- Agreement with Alnylam Pharmaceuticals, Inc.: Includes a royalty interest on ONPATTRO, with cumulative royalty revenue recorded at $24.4 million since inception.
Through these efforts, Arbutus Biopharma is positioned to make significant strides in the treatment of chronic hepatitis B, aligning its mission with the needs of patients and the evolving landscape of biopharmaceuticals.
How Arbutus Biopharma Corporation (ABUS) Works
Company Overview
Arbutus Biopharma Corporation is a clinical-stage biopharmaceutical company focused on developing novel therapeutics aimed at achieving a functional cure for chronic hepatitis B virus (cHBV) infection. The company's pipeline includes proprietary compounds such as imdusiran (AB-729) and AB-101, which are currently in various stages of clinical trials.
Financial Performance
For the nine months ended September 30, 2024, Arbutus reported a net loss of $57.4 million compared to a net loss of $53.5 million for the same period in 2023. The total revenue for the nine months in 2024 was $4.6 million, down from $16.0 million in 2023, reflecting a decrease in license revenue and royalties from collaborations.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Loss | $57.4 million | $53.5 million |
| Total Revenue | $4.6 million | $16.0 million |
| Operating Expenses | $67.0 million | $73.4 million |
| Cash and Cash Equivalents (End of Period) | $31.8 million | $17.5 million |
Revenue Breakdown
The company's revenue primarily comes from collaborations and licenses, particularly royalties from ONPATTRO sales and agreements with Qilu Pharmaceutical Co., Ltd.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Royalties from ONPATTRO | $1.98 million | $2.98 million |
| Qilu Pharmaceutical Co., Ltd. | $0.88 million | $10.35 million |
| Non-cash Royalty Revenue | $1.74 million | $2.67 million |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 totaled $67.0 million, a decrease from $73.4 million in 2023. The reduction was mainly due to a decline in research and development expenses as the company focused its efforts on key pipeline products.
| Expense Category | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Research and Development | $45.2 million | $56.1 million |
| General and Administrative | $17.4 million | $17.4 million |
| Restructuring Costs | $3.6 million | $0 |
Cash Flow Activities
For the nine months ended September 30, 2024, Arbutus utilized $54.5 million in operating activities, a significant decrease from $68.6 million in 2023. This change was primarily attributed to reduced research and development expenditures.
| Cash Flow Activity | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(54.5) million | $(68.6) million |
| Net Cash Provided by Investing Activities | $9.5 million | $28.5 million |
| Net Cash Provided by Financing Activities | $50.6 million | $26.8 million |
Liquidity Position
As of September 30, 2024, Arbutus had cash, cash equivalents, and investments in marketable securities amounting to $130.8 million, with no outstanding debt. The company anticipates this liquidity will be sufficient to fund operations through at least the fourth quarter of 2026.
| Liquidity Metric | Value |
|---|---|
| Cash and Cash Equivalents | $31.8 million |
| Investments in Marketable Securities | $99.0 million |
| Total Liquidity | $130.8 million |
| Outstanding Debt | $0 |
Research and Development Focus
Arbutus is currently prioritizing its HBV pipeline, with imdusiran in two Phase 2a clinical trials. The company has streamlined its workforce by approximately 40% to focus on these key projects.
How Arbutus Biopharma Corporation (ABUS) Makes Money
Revenue Streams
Arbutus Biopharma Corporation generates revenue primarily through collaborations and licensing agreements, royalties, and other income sources. As of September 30, 2024, the company reported total revenue of $4,597,000 for the nine months ended, a significant decrease compared to $15,996,000 for the same period in 2023. This decline is attributed to lower license revenue and royalties from sales of ONPATTRO.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Royalties from ONPATTRO | $644 | $714 | $1,981 | $2,980 |
| Collaboration with Qilu Pharmaceuticals | $123 | $3,221 | $880 | $10,349 |
| Non-cash royalty revenue | $572 | $723 | $1,736 | $2,667 |
| Total Revenue | $1,339 | $4,658 | $4,597 | $15,996 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $66,983,000, down from $73,352,000 in 2023. The primary components of these expenses include research and development (R&D) and general administrative costs.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Research and Development | $14,273 | $20,169 | $45,227 | $56,136 |
| General and Administrative | $4,537 | $5,842 | $17,396 | $17,374 |
| Change in Fair Value of Contingent Consideration | $344 | $205 | $735 | ($158) |
| Restructuring | $3,625 | $0 | $3,625 | $0 |
| Total Operating Expenses | $22,779 | $26,216 | $66,983 | $73,352 |
Net Loss
For the nine months ended September 30, 2024, Arbutus reported a net loss of $(57,388,000), compared to $(53,537,000) in the same period in 2023. This loss reflects the company's ongoing investments in R&D and the impact of lower revenues.
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $(19,717) |
| Q3 2023 | $(20,104) |
| YTD 2024 | $(57,388) |
| YTD 2023 | $(53,537) |
Cash Flow and Liquidity
As of September 30, 2024, Arbutus had cash, cash equivalents, and investments in marketable securities totaling $130.8 million, with no outstanding debt. The company used $54.5 million in operating activities during the nine months ended September 30, 2024, a decrease from $68.6 million in the prior year.
| Cash Flow Activity | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(54,535) | $(68,644) |
| Net Cash Provided by Investing Activities | $9,537 | $28,548 |
| Net Cash Provided by Financing Activities | $50,575 | $26,840 |
| Cash and Cash Equivalents, End of Period | $31,846 | $17,531 |
Future Revenue Potential
The company anticipates future revenue from ongoing collaborations and potential royalties, particularly from its agreements with Alnylam Pharmaceuticals and Qilu Pharmaceuticals. The total potential milestone payments from Qilu could reach up to $245 million, alongside royalties based on product sales.
| Collaboration Partner | Potential Milestones (in millions) | Royalty Rate |
|---|---|---|
| Qilu Pharmaceuticals | $245 | Low twenties percent |
| Alnylam Pharmaceuticals (ONPATTRO) | N/A | 0.75% to 1.125% |
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Updated on 16 Nov 2024
Resources:
- Arbutus Biopharma Corporation (ABUS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Arbutus Biopharma Corporation (ABUS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Arbutus Biopharma Corporation (ABUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.