Arbutus Biopharma (ABUS) Q3 2024 earnings summary

Executive summary

• Advanced imdusiran (AB-729) and AB-101 for chronic HBV, with multiple Phase 2a and Phase 1a/1b trials ongoing and new data to be presented at AASLD 2024.

• Streamlined operations in Q3 2024, ceasing all discovery efforts, discontinuing IM-PROVE III, and reducing workforce by 40%.

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

• Cash runway projected 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 program discontinuations and headcount reductions.

• One-time restructuring charge of $3.6 million in Q3 2024, including $2.9 million in severance and $0.2 million in asset impairment.

Outlook and guidance

• Cash burn for 2024 expected to range from $63 million to $67 million.

• Cash runway sufficient to fund operations into Q4 2026, assuming no additional financing.

• Preliminary data from AB-101 Phase 1b in cHBV patients and additional IM-PROVE I/II data expected in H1 2025 and at AASLD 2024.