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Arbutus Biopharma Corp (ABUS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $1.76M, up 15% year over year, and above Wall Street consensus; diluted EPS was a loss of $0.13, modestly below consensus, driven primarily by restructuring costs recorded in the quarter .
  • Arbutus reported total cash, cash equivalents and marketable securities of $112.7M as of March 31, 2025; operating cash burn was $13.4M in the quarter, partially offset by $2.7M from option exercises .
  • Clinical updates highlighted eight cHBV patients functionally cured to date on imdusiran combinations, including two without interferon; AB-101 showed high PD-L1 receptor occupancy with no immune-related SAEs or liver dysfunction in reported cohorts .
  • Management continues to review plans and timeline for an imdusiran Phase 2b trial; workforce and facility footprint reductions were executed to extend runway and focus on core programs .

What Went Well and What Went Wrong

What Went Well

  • Imdusiran combination therapy has functionally cured eight cHBV patients to date; notably two did not receive interferon. “This type of functional cure data…is an exciting milestone for Arbutus, clinicians, and patients.” — CEO Lindsay Androski .
  • AB-101 achieved 100% PD-L1 receptor occupancy in 11 of 13 evaluable healthy volunteers at 40mg; Part 3 data in cHBV showed 10mg QD for 28 days was well tolerated, with receptor occupancy similar to healthy volunteers .
  • Revenue beat versus consensus on higher recognition of the 2022 Qilu upfront license (partially offset by lower ONPATTRO royalties); total revenue grew 15% YoY .

What Went Wrong

  • EPS missed consensus due to $12.4M restructuring costs (cash severance/benefits, non-cash stock-based compensation, impairments, lease costs) booked in Q1 2025, elevating OpEx despite R&D reduction .
  • License royalty revenue declined versus prior year due to lower Alnylam ONPATTRO sales, tempering top-line growth .
  • Ongoing LNP litigation requires resources; while trials are scheduled, outcomes remain uncertain, prolonging potential monetization timing .

Financial Results

P&L and Cash Metrics (Quarterly comparison)

MetricQ2 2024Q3 2024Q1 2025
Revenue ($USD Millions)$1.726 $1.339 $1.764
Research & Development ($USD Millions)$15.551 $14.273 $8.959
General & Administrative ($USD Millions)$7.547 $4.537 $5.832
Restructuring Costs ($USD Millions)— $3.625 $12.373
Net Loss ($USD Millions)$(19.796) $(19.717) $(24.526)
Diluted EPS ($USD)$(0.11) $(0.10) $(0.13)
Cash, Cash Equivalents & Marketable Securities ($USD Millions, period-end)$148.513 $130.758 $112.707

Revenue Breakdown (Q1 2025 vs Q1 2024)

Revenue Component ($USD Thousands)Q1 2024Q1 2025
Collaborations and licenses$939 $1,316
Non-cash royalty revenue$593 $448
Total Revenue$1,532 $1,764

Operating Expense Detail (Q1 2025 vs Q1 2024)

OpEx Category ($USD Thousands)Q1 2024Q1 2025
Research & Development$15,403 $8,959
General & Administrative$5,312 $5,832
Change in Fair Value of Contingent Consideration$180 $299
Restructuring Costs— $12,373
Total Operating Expenses$20,895 $27,463

KPIs and Capitalization

KPIQ1 2025
Functionally cured patients (cumulative)8 (2 without interferon)
AB-101 PD-L1 receptor occupancy11/13 healthy volunteers at 40mg achieved 100%; 10mg QD in cHBV well tolerated
Cash, cash equivalents & marketable securities$112.7M
Operating cash flow (use)$(13.391)M
Shares outstanding (period-end)191.5M common shares; options/RSUs 15.2M; Roivant ~20% ownership

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net cash burnFY 2025$47–$50M expected; runway through Q1 2028 (includes Qilu milestones) No quantitative update in Q1 release; operating cash used $13.4M in Q1 Maintained (no update)
ATM programFY 2025Terminated ATM; no expected utilization No change noted in Q1 release Maintained
Imdusiran Phase 2b trial1H 2025Plan to initiate Phase 2b in 1H 2025, subject to regulatory approval Under review; Company evaluating strategies/timeline Revised (timeline under review)
Workforce/facilities202557% workforce reduction; HQ exit planned; Q1 restructuring charge ~$11–$13M Executed; Q1 restructuring costs $12.373M Implemented

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 2024)Previous Mentions (Q-1: Q4 2024)Current Period (Q1 2025)Trend
Functional cure threshold and designTarget ≥20% functional cure; lead-in to lower HBsAg improves outcomes Reviewing Phase 2b plans, retaining experts Eight functional cures cumulative, incl. two without IFN; more EASL analyses Positive efficacy narrative; design refinement ongoing
AB-101 checkpoint programReceptor occupancy ≥70% in 25mg MAD; initiate dosing in cHBV Part 3 in cHBV; next steps post program review 100% occupancy in 11/13 at 40mg; 10mg QD well tolerated in cHBV Advancing; safety/PD supportive
LNP litigation (Moderna/Pfizer)Moderna trial Sept 2025; Pfizer Markman Dec 2024 International suits filed; schedules pending Case entering summary judgment stage; UPC deadlines set Proceeding; timelines crystallizing
Cash runway/OpEx disciplineRunway to Q4 2026; restructuring charges in Q3 2024 ATM terminated; 57% workforce cut; runway reiterated Cash $112.7M; R&D down YoY; Q1 restructuring absorbs costs Runway preserved; near-term OpEx elevated due to restructuring
Imdusiran + IFN vs VTP-300/nivolumabEASL: HBsAg loss sustained (A1); VTP-300 arm significant HBsAg lowering AASLD updates planned EASL 2025 late-breaker: functional cures with low-dose nivolumab Combination strategies maturing

Management Commentary

  • “To date, eight patients have reached functional cure following imdusiran combination therapy…two of those functional cure patients did not receive any interferon during the trial.” — Lindsay Androski, President & CEO .
  • “AB-101…achieved 100% receptor occupancy in 11 of 13 evaluable healthy volunteers in our Phase 1a/1b clinical trial at the 40 mg dose…no AB-101-related SAEs and no evidence of liver dysfunction to date.” .
  • “Strong financial position with cash, cash equivalents and marketable securities of $113M.” .
  • Litigation update: claim construction for Pfizer/BioNTech in Dec 2024; Moderna U.S. jury trial scheduled for Sep 29, 2025; entering summary judgment stage; international suits filed across ~30 countries .

Q&A Highlights

  • No Q1 2025 earnings call transcript was found in the document catalog; therefore, Q&A highlights for Q1 2025 are unavailable [functions.ListDocuments result].
  • Context from Q3 2024 Q&A (for trend awareness):
    • Targeting ≥20% functional cure as a meaningful bar; design emphasizes imdusiran lead-in to lower HBsAg before adding immunomodulators .
    • AB-101 expectations: biomarker-heavy approach; 28-day monotherapy period may show PD signals rather than direct antiviral effects; goal is combination with imdusiran .
    • Cash runway assumptions excluded ATM proceeds; reiterated discipline .

Estimates Context

MetricQ1 2025 ConsensusQ1 2025 Actual
Revenue ($USD)$1,590,955.58*$1,764,000
Primary EPS ($USD)$(0.1034)*$(0.1264)

Values retrieved from S&P Global.*

  • Revenue beat vs consensus on higher recognition of Qilu license revenue; royalties were lower on ONPATTRO sales .
  • EPS miss vs consensus driven by $12.373M restructuring charges (severance, stock comp modifications, impairments, lease costs) despite lower R&D .

Key Takeaways for Investors

  • Revenue beat with 15% YoY growth; core driver was collaboration/license recognition, while royalty headwinds persisted; watch mix sustainability as estimate revisions may lift revenue forecasts modestly .
  • EPS miss was largely non-recurring restructuring-related; underlying R&D stepped down materially YoY, suggesting near-term OpEx normalization post-restructuring could improve EPS trajectory .
  • Clinical momentum: cumulative functional cures and AB-101 receptor occupancy strengthen probability of success for imdusiran combinations; near-term catalysts include additional data disclosures and Phase 2b pathway clarity .
  • Cash of $112.7M and Q1 operating cash burn of $13.4M provide runway; monitor 2025 net cash burn guidance ($47–$50M) and any updates to runway and milestone timing from Qilu .
  • Litigation could be a non-fundamental upside lever; schedules are set, but timelines and outcomes remain uncertain; position sizing should account for binary legal events .
  • Stock narrative drivers: confirmation of Phase 2b design/timing, additional functional cure data (especially non-IFN regimens), AB-101 combo strategy, and any litigation developments—expect estimate and sentiment shifts tied to these milestones .