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J.P. Morgan: Arbutus (ABUS.US) to Benefit from Flu Vaccine for Large Pharmaceutical Companies

AInvestWednesday, Jan 8, 2025 2:10 am ET
1min read

Jefferies believes that biopharmaceutical company Arbutus Biopharma (ABUS.US) could benefit from the H5N1 influenza vaccine being developed by Moderna (MRNA.US) and Pfizer (PFE.US)/GSK (GSK.US)/CureVac (CVAV.US).

Jefferies said that Moderna, Pfizer and their partner BioNTech (BNTX.US) are being sued by Arbutus, alleging that their use of LNP technology in their COVID-19 vaccines infringes on patents. Jefferies said: "We are bullish on Arbutus not only to receive damages for historical COVID-19 vaccine revenue from these lawsuits but also to receive royalties from future sales." Jefferies added that if these pharmaceutical companies use the same LNP cost in their mRNA influenza vaccines as in their COVID-19 vaccines, "royalties could be higher." Jefferies rates Arbutus' stock "buy" with a target price of $7. As of Tuesday's close of US stock markets, Arbutus was trading at $3.41 per share.

According to the information, since the beginning of 2024, 66 cases of human H5N1 have been reported in the United States. Most of them were infected after close contact with a herd of cows, with relatively mild symptoms. On January 6, the Louisiana Department of Health reported the first death of a person infected with the highly pathogenic H5N1 avian influenza virus in the United States. The department said the deceased was over 65 years old and had underlying diseases, and was infected with the virus through contact with backyard poultry and wild birds. Gene analysis showed that the influenza virus mutated in the patient's body, which may lead to severe illness.

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