Arbutus Biopharma: Chardan Capital Keeps Buy Rating, Raises PT to $5

Arbutus Biopharma: Chardan Capital Keeps Buy Rating, Raises PT to $5

Arbutus Biopharma Corporation (ABUS) reported its second-quarter (Q2) 2025 earnings, showcasing a significant turnaround from the previous year. The biopharmaceutical company, based in Warminster, Pennsylvania, posted net income of $2.523 million, up from a net loss of $19.796 million in the same period last year. Earnings per share (EPS) increased to $0.01 from -$0.11, reflecting a substantial improvement in financial performance [4].

Revenue for the quarter ended June 30, 2025, was $10.739 million, a notable increase from $1.726 million in the same period last year. This growth was primarily driven by the recognition of previously-deferred revenue as a result of the conclusion of the Company's strategic partnership with Qilu Pharmaceutical [2].

Chardan Capital, a leading financial services firm, has maintained its "Buy" rating on Arbutus Biopharma, but has raised its price target (PT) to $5 from $4.50. The firm's analysts highlighted the company's strong financial position, with cash, cash equivalents, and marketable securities totaling $98.1 million as of June 30, 2025 [4]. Operating expenses decreased significantly, with research and development expenses falling to $5.5 million from $15.6 million, and general and administrative expenses dropping to $3.3 million from $7.5 million. These reductions were achieved through cost-cutting measures and organizational streamlining [4].

The company's stock price responded positively to the earnings report, rising by 3.81% in pre-market trading. The stock closed at $3.41, up from $3.62 a year ago [4]. Arbutus' strategic partnership with Qilu Pharmaceutical and the reacquisition of rights for imdusiran in Greater China were key drivers of the quarter's positive results. The company also welcomed Dr. Harry Janssen to its Scientific Advisory Board and Dr. Roger Sawhney to its Board of Directors, further bolstering its leadership and strategic direction [4].

Chardan Capital's analysts also noted the company's ongoing legal proceedings against Moderna and Pfizer/BioNTech to protect its patented LNP technology, which is integral to their COVID-19 vaccines. The summary judgment phase of the case began in July 2025, with a jury trial scheduled for March 2026 [4].

Overall, Arbutus Biopharma Corp.'s Q2 2025 earnings report demonstrates a notable turnaround in financial performance, driven by strategic partnerships and cost-cutting measures. Investors will be watching closely for further developments in the company's pipeline and ongoing legal battles.

References:
[1] https://www.marketscreener.com/news/arbutus-biopharma-corporation-reports-earnings-results-for-the-second-quarter-and-six-months-ended-j-ce7c5ed9d188fe2c
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TY1MH:0-arbutus-biopharma-corp-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[3] https://www.marketscreener.com/news/arbutus-q2-earnings-snapshot-ce7c5ed9df81fe21
[4] https://www.ainvest.com/news/arbutus-biopharma-reports-q2-earnings-2-523mln-revenue-10-739mln-eps-0-01-2508/