On March 23, 2026 Arbutus Biopharma Corporation (Nasdaq: ABUS) ("Arbutus" or the "Company"), a clinical-stage biopharmaceutical company focused on infectious disease, reported fourth quarter and year end 2025 financial results and provided a corporate update.
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"We delivered another strong quarter, maintaining a disciplined approach to capital allocation and a continued focus on maximizing our cash runway," said Lindsay Androski, President and CEO of Arbutus. "I am thrilled to announce that two additional patients from our Phase 2a trials of imdusiran have achieved functional cure in chronic hepatitis B ("cHBV"), and am pleased with our team’s continuing progress on our cHBV programs."
LNP Litigation
On March 3, 2026, Arbutus, along with its exclusive licensee, Genevant Sciences ("Genevant"), entered into a settlement agreement to resolve all global patent infringement litigation and patent revocation proceedings involving Moderna. As part of the settlement, Moderna will pay Arbutus and Genevant $950 million upfront in July 2026 ("Noncontingent Settlement Payment") and an additional $1.3 billion contingent upon an appellate ruling that 28 U.S.C. §1498 ("Section 1498") does not bar Arbutus’ and Genevant’s claims against Moderna for patent infringement, except as to doses characterized by the district court as having gone to U.S. government employees. In asserting that defense, Moderna argued that Section 1498 applies such that U.S. taxpayers should assume liability for its infringement of Arbutus’ and Genevant’s patents for sales made under one of its government contracts. Moderna has also consented to entry of a judgment of infringement and of no invalidity of four Arbutus/Genevant patents. For more information about the terms and conditions of the settlement with Moderna, including the contingent payment, please refer to Arbutus’ Annual Report on Form 10-K filed with the SEC on March 20, 2026. Under the Company’s license with Genevant, the Company is entitled to receive, after deduction of litigation costs, 20% of the Noncontingent Settlement Payment. In addition, the Company owns approximately 16% of the outstanding common equity of Genevant.
Arbutus continues to consult closely with and support Genevant to protect and defend Arbutus’ intellectual property, which is the subject of an on-going lawsuit against Pfizer/BioNTech. The Company, together with Genevant, is seeking fair compensation for use of Arbutus’ patented lipid nanoparticle ("LNP") technology that was developed with great effort and at a great expense, and without which Pfizer/BioNTech’s COVID-19 vaccines would not have been successful. The claim construction hearing for the lawsuit against Pfizer/BioNTech occurred in December 2024, and the court issued a claim construction ruling in September 2025, which construed the disputed claim terms in a manner the Company generally considers to be favorable. The parties are awaiting further scheduling in the litigation.
Corporate Updates
Two additional patients from the Company’s Phase 2a clinical trials of imdusiran achieved functional cure, making a total of 10 patients to date that have achieved functional cure during Phase 2a clinical trials and long-term follow-up. Two of these functionally cured patients seroreverted during long-term follow-up, but remain virally suppressed and off nucleos(t)ide analogue ("NA") therapy.
In December 2025, the Company recognized revenue of $0.5 million following the achievement of a contractual milestone related to Alnylam’s use of the Company’s proprietary LNP technology in an additional product candidate to treat hepatocellular carcinoma (HCC), underscoring the important role the Company’s LNP technology plays in the delivery of nucleic acids to the body. Payment was received in January 2026.
In connection with payments the Company expects to receive under the Moderna settlement, the Company is currently evaluating a return of capital to its shareholders in the third quarter of calendar year 2026, following the receipt of its portion of the noncontingent lump sum payment from Moderna.
Financial Results
Cash, Cash Equivalents and Investments
As of December 31, 2025, the Company had cash, cash equivalents and investments in marketable securities of $91.5 million compared to $122.6 million as of December 31, 2024. During the year ended December 31, 2025, the Company used $39.6 million in operating activities, which included one-time payments related to its restructuring efforts. This was partially offset by $5.5 million of proceeds from the exercise of stock options.
Revenue
Total revenue was $14.1 million for the year ended December 31, 2025, compared to $6.2 million for the same period in 2024. The increase of $7.9 million was due to the recognition of all previously-deferred revenue as a result of the conclusion of the Company’s strategic partnership with Qilu Pharmaceutical, partially offset by a decrease in license royalty revenues due to a decline in Alnylam’s sales of ONPATTRO.
Operating Expenses
Research and development expenses were $25.2 million for the year ended December 31, 2025, compared to $54.0 million for the same period in 2024. The decrease of $28.8 million was due primarily to cost savings from the Company’s decisions to streamline the organization to focus its efforts on advancing the clinical development of imdusiran and AB-101, which included ceasing all discovery efforts, discontinuing its IM-PROVE III clinical trial, and right-sizing the Company’s workforce.
General and administrative expenses were $15.9 million for the year ended December 31, 2025, compared to $22.1 million for the same period in 2024. This decrease was due primarily to cost-cutting efforts by the Company, which drove reductions in employee compensation-related expenses and legal fees.
Restructuring costs for the year ended December 31, 2025 were $12.9 million, and all remaining restructuring-related payments are expected to be made by the first quarter of 2026.
Net Loss
For the year ended December 31, 2025, the Company’s net loss was $33.5 million, or a loss of $0.17 per basic and diluted common share, as compared to a net loss of $69.9 million, or a loss of $0.38 per basic and diluted common share, for the quarter ended December 31, 2024.
Outstanding Shares
As of December 31, 2025, the Company had 192.5 million common shares issued and outstanding, as well as 14.0 million stock options and unvested restricted stock units outstanding.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND LOSS
(in thousands, except share and per share data)
Year ended December 31,
2025 2024
Revenue
Collaborations and licenses $ 12,601 $ 3,919
Non-cash royalty revenue 1,482 2,252
Total revenue 14,083 6,171
Operating expenses
Research and development 25,241 54,037
General and administrative 15,893 22,108
Change in fair value of contingent consideration (1,830 ) 2,625
Restructuring costs 12,939 3,720
Total operating expenses 52,243 82,490
Loss from operations (38,160 ) (76,319 )
Other income
Interest income 4,068 6,585
Gain on sale of property and equipment 674 —
Interest expense (97 ) (137 )
Foreign exchange gain / (loss) 14 (49 )
Total other income 4,659 6,399
Net loss $ (33,501 ) $ (69,920 )
Net loss per common share
Basic and diluted $ (0.17 ) $ (0.38 )
Weighted average number of common shares
Basic and diluted 191,599,600 185,608,874
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, 2025 December 31, 2024
Cash, cash equivalents and marketable securities, current $ 91,471 $ 122,623
Accounts receivable and other current assets 2,985 4,693
Total current assets 94,456 127,316
Property and equipment, net of accumulated depreciation and impairment 32 3,309
Right of use asset — 1,048
Other non-current assets 130 34
Total assets $ 94,618 $ 131,707
Accounts payable and accrued liabilities $ 5,459 $ 7,564
Deferred license revenue, current — 7,571
Lease liability, current 547 483
Total current liabilities 6,006 15,618
Liability related to sale of future royalties 3,442 4,829
Deferred license revenue, non-current — 2,863
Contingent consideration 8,395 10,225
Lease liability, non-current 199 806
Total stockholders’ equity 76,576 97,366
Total liabilities and stockholders’ equity $ 94,618 $ 131,707
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year ended December 31,
2025 2024
Net loss $ (33,501 ) $ (69,920 )
Non-cash items 3,887 7,899
Change in deferred license revenue (10,434 ) (1,357 )
Other changes in working capital 411 (1,472 )
Net cash used in operating activities (39,637 ) (64,850 )
Net cash provided by investing activities 15,580 22,948
Issuance of common shares pursuant to the Open Market Sale Agreement — 44,123
Cash provided by other financing activities 5,721 7,873
Net cash provided by financing activities 5,721 51,996
Effect of foreign exchange rate changes on cash and cash equivalents 14 (49 )
(Decrease) / increase in cash and cash equivalents (18,322 ) 10,045
Cash and cash equivalents, beginning of period 36,330 26,285
Cash and cash equivalents, end of period 18,008 36,330
Investments in marketable securities 73,463 86,293
Cash, cash equivalents and investments, end of period $ 91,471 $ 122,623
About Imdusiran (AB-729)
Imdusiran is an RNAi therapeutic specifically designed to reduce all hepatitis B viral proteins and antigens, including hepatitis B surface antigen ("HBsAg"), which is thought to be a key prerequisite to enable reawakening of a patient’s immune system to control the virus. Imdusiran targets hepatocytes using Arbutus’ novel covalently conjugated N-Acetylgalactosamine ("GalNAc") delivery technology enabling subcutaneous delivery. In Arbutus’ Phase 2a clinical trials, eight patients with cHBV achieved functional cure following treatment with imdusiran and NA therapy in combination with either pegylated interferon alfa-2a or low dose nivolumab plus an immunotherapeutic, with six out of the eight patients continuing to sustain functional cure for over two years. An additional 41 patients across the Company’s Phase 2a clinical trials were able to remain off NA therapy for at least 48 weeks during their Phase 2a clinical trials following treatment with imdusiran. Two additional patients who discontinued NA therapy in their Phase 2a clinical trials have now achieved functional cure during their participation in long-term follow-up. Functional cure is defined as sustained HBsAg seroclearance and hepatitis B virus deoxyribonucleic acid ("HBV DNA") less than the lower limit of quantification after 24 weeks off treatment, with or without anti-hepatitis B surface antibodies. Clinical data generated thus far has shown imdusiran to be generally safe and well-tolerated, while also providing meaningful reductions in HBsAg and HBV DNA.
About HBV
Hepatitis B is a potentially life-threatening liver infection caused by hepatitis B virus ("HBV"). HBV can cause chronic infection which leads to a higher risk of death from cirrhosis and liver cancer. cHBV infection represents a significant unmet medical need. The World Health Organization estimates that over 250 million people worldwide suffer from cHBV infection, while other estimates indicate that approximately 2 million people in the United States suffer from cHBV infection. Approximately 1.1 million people die every year from complications related to cHBV infection despite the availability of effective vaccines and current treatment options.
(Press release, Arbutus Biopharma, MAR 23, 2026, View Source [SID1234663820])