Arbutus Biopharma 2025 Q3 Earnings 60.7% Net Loss Reduction Misses Targets

Arbutus Biopharma reported Q3 2025 results that missed revenue and earnings expectations, with a significant 60.7% reduction in net losses year-over-year. The company highlighted clinical progress on imdusiran while navigating legal battles over its LNP technology.

Revenue

Arbutus Biopharma’s total revenue fell by 60.5% to $529,000 in Q3 2025, down from $1.34 million in the prior-year period. Collaborations and licenses contributed $280,000, while non-cash royalty revenue added $249,000. The decline primarily stemmed from reduced royalty income tied to Alnylam’s ONPATTRO sales.

Earnings/Net Income

The company narrowed its net loss to $7.74 million ($0.04 per share) in Q3 2025, a 60.7% improvement from $19.72 million ($0.10 per share) in Q3 2024. Despite the reduction, Arbutus has sustained losses for 13 consecutive years, underscoring ongoing financial challenges.

Post-Earnings Price Action Review

Shares of Arbutus dipped 4.60% on the latest trading day but gained 2.70% for the week and 7.55% month-to-date. Despite missing earnings estimates, the stock rose 5% in after-hours trading following promising imdusiran data showing 46% of Phase 2a patients discontinued treatment. Investors remain cautiously optimistic, with a median 12-month price target of $5.00, slightly above the $4.84 closing price.

Additional News

Arbutus faces litigation with Moderna and Pfizer/BioNTech over its LNP technology patents, with a U.S. trial against Moderna scheduled for March 2026. A favorable ruling in the Pfizer-BioNTech case in September 2025 strengthens its IP position. The company also announced a strategic partnership with Qilu Pharmaceutical, returning global rights for imdusiran to Arbutus in June 2025. Additionally, Arbutus returned $35 million in operating cash during the first nine months of 2025, reflecting cost-cutting measures.