Strong financial position with cash, cash equivalents and marketable securities of $91.5M as of December 2025
$2.25B Moderna global settlement for infringement of lipid nanoparticle (LNP) delivery technology represents significant outcome for Arbutus and Genevant
Two additional patients from Phase 2a clinical trials of imdusiran achieve functional cure
Milestone payment received under Alnylam LNP license for product candidate to treat hepatocellular carcinoma $(HCC)$
WARMINSTER, Pa., March 23, 2026 (GLOBE NEWSWIRE) -- Arbutus Biopharma Corporation (Nasdaq: ABUS) ("Arbutus" or the "Company"), a clinical-stage biopharmaceutical company focused on infectious disease, today reported fourth quarter and year end 2025 financial results and provided a corporate update.
"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
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