Arbutus Biopharma Reports Mixed Financial Results for Q3 2024, Net Loss Widens

Arbutus Biopharma Corporation reported significant financial results for the third quarter and the nine months ended September 30, 2024, reflecting a challenging period for the clinical-stage biopharmaceutical company focused on developing therapeutics for chronic hepatitis B virus (cHBV) infection.

Total revenue for Q3 2024 was $1.34 million, a decrease of $3.32 million from $4.66 million in Q3 2023. For the nine months ended September 30, 2024, revenue totaled $4.60 million, down $11.40 million from $16.00 million in the same period last year. The decline in revenue was primarily attributed to reduced license revenue from a technology transfer and licensing agreement with Qilu Pharmaceutical, as well as lower royalty revenue from Alnylam and Acuitas due to decreased sales of ONPATTRO.

Operating expenses for Q3 2024 were $22.78 million, down from $26.22 million in Q3 2023. For the nine-month period, operating expenses decreased to $66.98 million from $73.35 million in the prior year. The reduction in research and development expenses was notable, decreasing by $5.9 million in Q3 and $10.9 million for the nine months, largely due to the discontinuation of certain programs and related headcount reductions. General and administrative expenses remained stable, with a slight decrease attributed to lower employee compensation costs offset by increased litigation-related expenses.

The company reported a net loss of $19.72 million for Q3 2024, slightly improved from a net loss of $20.10 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $57.39 million, compared to $53.54 million in the same period of 2023. The basic and diluted loss per share for Q3 2024 was $(0.10), compared to $(0.12) in Q3 2023.

In terms of liquidity, Arbutus had cash and cash equivalents of $31.85 million as of September 30, 2024, an increase from $26.29 million at the end of 2023. The company also reported total current assets of $132.78 million, with total stockholders' equity at $106.89 million. The company has no outstanding debt and expects to have sufficient cash resources to fund operations for at least the next 12 months.

Strategically, Arbutus implemented a restructuring plan effective August 1, 2024, resulting in a 40% reduction in workforce, which incurred a one-time charge of approximately $3.6 million in Q3 2024. The restructuring aimed to streamline operations and focus on core product development, particularly the imdusiran program, which is currently in Phase 2a clinical trials. The company also continues to pursue ongoing litigation against Moderna and Pfizer/BioNTech regarding patented lipid nanoparticle technology.