WARMINSTER, PA — Arbutus Biopharma Corporation (Nasdaq: ABUS) reported a sharp swing to quarterly profit after recognizing revenue tied to a patent litigation settlement involving Moderna, while also receiving FDA Fast Track designation for its hepatitis B treatment candidate.
First-quarter revenue rose to $179.1 million from $1.8 million a year earlier, driven primarily by expected license revenue connected to a March settlement agreement involving Arbutus, its licensee Genevant Sciences, and Moderna, Inc..
Under the agreement, Moderna will pay Arbutus and Genevant $950 million upfront in July, with an additional $1.3 billion contingent on the outcome of appellate proceedings tied to patent claims.
Arbutus said it expects to receive approximately $178.7 million from the initial settlement payment through its licensing arrangement with Genevant, including reimbursement of litigation costs.
The settlement resolves global patent infringement litigation and patent revocation proceedings involving Moderna.
The company reported net income of $169.7 million, or $0.88 per basic share, for the quarter ended March 31, compared with a net loss of $24.5 million, or $0.13 per share, a year earlier.
Arbutus also announced that the U.S. Food and Drug Administration granted Fast Track designation in April for imdusiran, the company’s investigational treatment for chronic hepatitis B.
The FDA’s Fast Track program is intended to accelerate development and review of therapies targeting serious diseases with unmet medical needs.
Cash, cash equivalents, and marketable securities totaled $95.2 million at quarter end, compared with $91.5 million at the end of 2025.
Research and development expenses declined to $4.1 million from $9.0 million a year earlier following workforce reductions, lower clinical trial costs, and the company’s decision to discontinue in-house scientific research activities.
General and administrative expenses increased slightly to $5.9 million, driven in part by legal expenses related to the Moderna settlement.
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