Arbutus Biopharma (ABUS) Q3 2024 earnings summary

Executive summary

• Advanced imdusiran (AB-729) and AB-101 for chronic HBV, with multiple abstracts and late-breaker posters accepted for The Liver Meeting 2024, including promising Phase 2a data and ongoing Phase 1a/1b trial for AB-101.

• Streamlined operations in Q3 2024 by ceasing all discovery efforts, discontinuing IM-PROVE III, and reducing workforce by 40%, incurring a $3.6 million restructuring charge.

• Ongoing patent litigation against Moderna and Pfizer/BioNTech over LNP technology, with trial dates set for late 2024 and September 2025.

• Cash runway projected to fund operations into Q4 2026, supported by recent financing and cost reductions.

Financial highlights

• Ended Q3 2024 with $130.8 million in cash, cash equivalents, and marketable securities, down from $132.3 million at year-end 2023.

• Q3 2024 revenue was $1.3 million, down from $4.7 million in Q3 2023, mainly due to lower license and royalty revenue.

• Net loss for Q3 2024 was $19.7 million ($0.10/share), compared to $20.1 million ($0.12/share) in Q3 2023.

• Operating expenses for Q3 2024 were $22.8 million, down from $26.2 million in Q3 2023, reflecting lower R&D and G&A costs.

• Cash used in operations for the nine months ended September 30, 2024 was $54.5 million.

Outlook and guidance

• Cash burn for 2024 projected at $63–$67 million, with runway expected to fund operations into Q4 2026.

• Preliminary data from AB-101 Phase 1b in cHBV patients expected in H1 2025.

• Additional follow-up data from IM-PROVE I and II trials to be presented at AASLD Liver Meeting in November 2024.

• Phase II-B trial planning for imdusiran ongoing, with timing dependent on internal and regulatory discussions.