Arbutus Biopharma Corporation

What they do

Arbutus is developing imdusiran (AB-729), a GalNAc-conjugated, subcutaneously delivered RNAi therapeutic, and AB-101, an oral PD-L1 inhibitor, both for chronic hepatitis B. It also holds and licenses lipid nanoparticle (LNP) delivery technology that it developed internally and exclusively licenses to Genevant, and it owns roughly 16% of Genevant's common equity. The company has ceased in-house scientific research and discovery and now focuses spending on clinical development and on enforcing its LNP patents.

Revenue drivers

• Genevant license revenue — Recognized $179.4 million in the six months ended June 30, 2026, essentially all of total revenue, representing Arbutus's share of the Moderna settlement received July 8, 2026; Arbutus receives 20% of the $950 million noncontingent payment after litigation costs.
• Collaboration and license revenue — Small and declining: $202 thousand from Acuitas and $180 thousand from Alnylam in Q2 2026, versus $10.7 million total in Q2 2025, which had included $9.6 million of deferred Qilu revenue recognized on conclusion of that partnership.
• Moderna contingent payment — A further $1.3 billion payable to Arbutus and Genevant, contingent on a favorable appellate ruling on 28 U.S.C. 1498; Arbutus would again receive 20% after litigation costs.

Recent performance

Q2 2026 total revenue was $1.0 million versus $10.7 million in Q2 2025, with the decline due to $9.6 million of deferred Qilu revenue recognized in the prior-year period. Six-month 2026 revenue was $180.1 million and net income was $164.6 million, driven by $178.4 million recognized for Arbutus's share of the Moderna noncontingent payment, compared with a $22.0 million net loss in the first half of 2025. Q2 2026 operating expenses were $6.98 million, with R&D of $2.9 million and G&A of $3.9 million. Cash, cash equivalents and marketable securities were $92.6 million at June 30, 2026, and $14.1 million was used in operating activities in the first half, offset by $14.7 million of stock option proceeds.

Strategy

Management is concentrating on the cHBV pipeline while monetizing its LNP intellectual property. In April 2026 the FDA granted Fast Track designation for imdusiran, and in May 2026 the company reached alignment with the FDA on the design and safety parameters of a proposed Phase 2b trial, which it intends to finalize into a protocol. In July 2026 Arbutus and Genevant filed three international patent lawsuits against Pfizer, BioNTech and affiliates across 21 countries, while the U.S. Pfizer/BioNTech case continues after a September 2025 claim construction ruling the company considers generally favorable. The board is evaluating returning up to approximately $230 million of capital to shareholders starting in Q3 2026, following the Moderna payment. Prior restructurings cut the workforce by 40% in 2024 and a further 57% in 2025, exited the Warminster headquarters, and produced $12.9 million of 2025 restructuring charges.

Risks

• Litigation dependence — The company is simultaneously pursuing patent infringement actions against Pfizer/BioNTech internationally and against the United States, cases it describes as requiring substantial resources over an extended period with highly uncertain outcomes.
• Contingent payment uncertainty — The additional $1.3 billion from Moderna depends on a favorable appellate ruling on 28 U.S.C. 1498 that Moderna is permitted to seek, so Arbutus may never receive it.
• Clinical stage with no approved product — Imdusiran and AB-101 remain investigational, the most advanced programs are not yet in late-stage development, and future revenue depends on successful trials and regulatory outcomes.
• Capital return execution — The up-to-$230 million repurchase is not assured, remains subject to board approval, and may not occur in Q3 2026 or at all.

Outlook

Management expects to begin returning capital to shareholders in Q3 2026, targeting up to approximately $230 million of common share repurchases via a tender offer, open market purchases, accelerated share repurchases or other means, subject to board approval. It also anticipates a material dividend from Genevant in Q3 2026 and intends to finalize a Phase 2b imdusiran protocol incorporating FDA feedback. Additional value is tied to the pending Pfizer/BioNTech litigation and the Moderna contingent payment appeal.