WARMINSTER, PA — Arbutus Biopharma Corporation (Nasdaq: ABUS) reported a return to profitability in the second quarter, driven by the termination of a regional licensing deal and renewed strategic focus on its chronic hepatitis B (cHBV) pipeline. The biotech firm posted $10.7 million in revenue and net income of $2.5 million, marking a turnaround from a net loss of $19.8 million in the same quarter last year.
Revenue surged primarily due to the recognition of deferred income following the mutual decision in June to end Arbutus’s partnership with Qilu Pharmaceutical for the Greater China rights to imdusiran, its lead RNAi-based therapeutic. With full global rights now restored, the company is doubling down on its clinical development strategy.
“We delivered a strong quarter, marked by positive quarterly earnings resulting from the conclusion of our Greater China partnership with Qilu,” said President and CEO Lindsay Androski. “Once again holding global rights for imdusiran, and launching a late-stage clinically focused Scientific Advisory Board, were two important steps taken this quarter in our quest to drive long-term value through our cHBV programs.”
Arbutus closed the quarter with $98.1 million in cash, cash equivalents, and marketable securities—down from $122.6 million at the end of 2024. The decrease includes one-time payments tied to prior restructuring efforts.
Spending Drops Sharply After Restructuring
Operating expenses fell significantly. Research and development costs dropped to $5.5 million from $15.6 million year-over-year, following last year’s decision to halt early-stage discovery and narrow focus to late-stage clinical development. General and administrative expenses also declined, totaling $3.3 million compared to $7.5 million last year, reflecting lower litigation fees and reduced headcount.
Strategic Board Changes and Scientific Leadership
The company announced several leadership updates. Dr. Roger Sawhney, an executive with extensive experience in biotechnology, pharmaceuticals, and investment, joined the board following the departure of Anuj Hasija, who accepted an executive role at Vertex. In addition, Dr. Harry Janssen, a global expert in hepatitis B treatment and head of gastroenterology and hepatology at Erasmus MC in Rotterdam, was appointed to the Scientific Advisory Board.
“I am excited to announce that Dr. Harry Janssen…has joined our Scientific Advisory Board, bringing his unparalleled knowledge and experience in late-stage clinical trials in cHBV,” said Androski. “We are also excited to welcome Dr. Roger Sawhney as the newest member of our Board.”
LNP Litigation Moves Forward
Arbutus also provided an update on its ongoing lipid nanoparticle (LNP) technology litigation. Alongside licensee Genevant Sciences, Arbutus is pursuing claims against Moderna and Pfizer/BioNTech over the use of its LNP delivery technology in their COVID-19 vaccines. In the U.S. case against Moderna, summary judgment proceedings began in July, and a jury trial is scheduled for March 2026. Arbutus and Genevant also initiated five international lawsuits in March, targeting patent infringement in over 30 countries, with major hearings expected in 2026.
Focus on Imdusiran and cHBV
Imdusiran (AB-729) remains the centerpiece of Arbutus’s pipeline. Designed to reduce key viral proteins in HBV and potentially reawaken immune response, the RNAi therapeutic has now shown evidence of functional cure in eight patients in clinical trials. The compound is administered via subcutaneous injection using the company’s proprietary GalNAc delivery platform.
With an estimated 250 million people globally suffering from chronic hepatitis B, Arbutus sees a significant unmet medical need. The World Health Organization attributes over 1.1 million deaths annually to HBV-related complications, despite existing vaccines and therapies.
As the company consolidates its global position around imdusiran and continues to advance its clinical strategy, Arbutus appears poised for a more focused, financially disciplined approach heading into the second half of the year.
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