Arbutus Biopharma 2025 Q3 Earnings Narrowed Losses Amid Legal and Clinical Developments

Arbutus Biopharma reported Q3 2025 earnings on Nov 13, 2025, with revenue and net loss missing analyst estimates. The company highlighted progress in imdusiran trials and ongoing litigation over LNP technology patents. Despite financial underperformance, shares rose in after-hours trading as clinical data showed promise for hepatitis B treatments.

Revenue

Arbutus’s Q3 revenue fell 60.5% to $529,000, driven by a 60.4% year-over-year decline in license royalty revenues from Alnylam’s ONPATTRO sales. Collaborations and licenses contributed $280,000, while non-cash royalty revenue totaled $249,000, reflecting reduced partnership income and strategic focus on core programs.

Earnings/Net Income

The company narrowed its net loss to $7.74 million ($0.04 per share) for Q3 2025, a 60.7% improvement from $19.72 million ($0.10 per share) in Q3 2024. Cost-cutting measures, including a 57% workforce reduction and discontinued discovery efforts, reduced R&D expenses by 60.0% to $5.8 million. The improved performance underscores disciplined cost management but highlights sustained operational challenges.

Post-Earnings Price Action Review

Following the report, Arbutus’s stock dropped 4.60% in the latest trading day but gained 2.70% for the week and 7.55% month-to-date. The mixed reaction reflects investor optimism about imdusiran’s clinical progress and legal victories, despite revenue shortfalls.

CEO Commentary

Lindsay Androski, President and CEO, emphasized disciplined execution of strategic priorities, including advancing imdusiran’s development for chronic hepatitis B. She highlighted the 46% of Phase 2a patients who discontinued nucleos(t)ide analogue therapy and the durability of treatment effects, which she described as “a testament to our focus on transformative therapies.”

Guidance

Arbutus provided no explicit forward-looking financial guidance but reiterated plans to reduce operating expenses and prioritize imdusiran and AB-101 clinical programs. The company expects to maintain a strong cash position, with $93.7 million in liquidity as of Sept 30, 2025, to fund operations through 2026.

Additional News

Arbutus faces litigation against Moderna and Pfizer/BioNTech over LNP technology patents, with a U.S. trial scheduled for March 2026 and favorable rulings in ongoing cases. The company also reported promising imdusiran data, including 94% of long-term follow-up patients remaining off treatment for over two years. Additionally, Arbutus completed a 57% workforce reduction and exited its Warminster, PA headquarters to streamline operations.