WARMINSTER, PA — Arbutus Biopharma Corporation (Nasdaq: ABUS) plans to return up to approximately $230 million to shareholders after receiving $178.4 million from its patent settlement with Moderna, shifting capital from a major litigation resolution toward investors while pursuing additional patent claims against Pfizer and BioNTech.
The clinical-stage biotechnology company received the payment July 8 as its share of a $950 million noncontingent settlement payment made by Moderna to Arbutus and its exclusive licensee, Genevant Sciences. The amount received by Arbutus includes reimbursement for litigation costs.
Arbutus also owns approximately 16% of Genevant’s outstanding common equity and expects to receive what it described as a material dividend from Genevant during the third quarter.
The company expects to begin returning capital to shareholders in the third quarter through repurchases of as much as approximately $230 million of common shares. Potential methods include a tender offer, modified Dutch auction, open-market purchases or accelerated share repurchases.
The structure and timing remain subject to approval by Arbutus’ board, and the company cautioned that there is no assurance repurchases will begin in the third quarter or occur at all.
The March settlement resolved global patent infringement litigation and patent revocation proceedings involving Moderna. Beyond the initial $950 million payment, Moderna could owe another $1.3 billion depending on the outcome of an appellate dispute over whether 28 U.S.C. §1498 bars certain patent infringement claims.
Arbutus and Genevant have meanwhile expanded their intellectual property fight against other COVID-19 vaccine manufacturers. In July, they filed three international lawsuits against Pfizer, BioNTech and certain affiliates seeking enforcement of lipid nanoparticle technology patents across 21 countries.
The litigation and planned capital return come as Arbutus concentrates its drug-development operations on imdusiran, an experimental treatment for chronic hepatitis B.
The FDA granted imdusiran Fast Track designation in April. In May, Arbutus reached agreement with the agency on the design and safety parameters for a proposed Phase 2b trial and plans to incorporate that feedback into the final protocol.
Chief Executive Officer Lindsay Androski reported that imdusiran has achieved what the company characterizes as a functional cure in 10 chronic hepatitis B patients to date. The company did not provide additional clinical data supporting that figure in the earnings release.
Arbutus entered the second half with $92.6 million in cash, cash equivalents and marketable securities as of June 30, compared with $91.5 million at the end of 2025. That quarter-end figure excludes the $178.4 million Moderna settlement proceeds received in July.
The company used $14.1 million in operating activities during the first six months of 2026, including one-time restructuring payments, while receiving $14.7 million from stock-option exercises.
Second-quarter revenue fell to $1 million from $10.7 million a year earlier. The prior-year period included recognition of $9.6 million in previously deferred revenue following the conclusion of Arbutus’ partnership with Qilu in June 2025.
Research and development spending declined to $2.9 million from $5.5 million, reflecting workforce reductions, the discontinuation of in-house scientific research and lower clinical-trial expenses as studies approached completion.
General and administrative expenses increased to $3.9 million from $3.3 million, primarily because of higher stock-based compensation.
Arbutus posted a second-quarter net loss of $5.1 million, or 3 cents per share, reversing net income of $2.5 million, or 1 cent per share, in the year-earlier period.
The company had 197.6 million common shares outstanding as of June 30, along with 8.6 million outstanding stock options and unvested restricted stock units.
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