One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Arbutus Biopharma Corporation
ABUS · NMS · Healthcare · Biotechnology
Current price
$4.22
52-week range
$3.50 - $5.45
Market cap
$646.82M
Balance sheet
Healthy
-278.88x Concerning
Net cash $89.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1190.4% last year.
- Reward Returns 89.6% on equity, ahead of 75% of its peers.
- Reward Trades at 5.3x P/E vs peer median 15.3x (65.1% cheaper).
- Risk Operating margin compressed from -162.0% to -567.2% over 3 years.
What this company does
Arbutus Biopharma Corporation
Arbutus Biopharma Corporation is developing new medicines to fight serious infections like Hepatitis B, which means they create potential treatments for diseases. Their main source of money will eventually come from selling these new medicines once they are approved, and this matters because it's how they fund their ongoing research and development to help patients.
How the company got here
Arbutus Biopharma, originally founded as Tekmira Pharmaceuticals in 2005, has evolved significantly over the years. The company was spun out of Inex Pharmaceuticals and later rebranded as Arbutus Biopharma in 2015, sharpening its focus on developing therapies for hepatitis B virus (HBV) infection. This strategic shift followed earlier work in RNA interference (RNAi) delivery technologies and antiviral programs. Arbutus has consolidated its efforts around finding a cure for chronic HBV and licensing its proprietary lipid nanoparticle (LNP) intellectual property. The company's history also includes significant involvement in patent disputes and settlements related to LNP technology, particularly concerning its use in mRNA vaccines.
What it actually does
Arbutus Biopharma is a clinical-stage biopharmaceutical company dedicated to developing innovative treatments for infectious diseases, with a primary focus on achieving a functional cure for chronic hepatitis B virus (HBV) infection. A functional cure means not just suppressing the virus, but achieving a sustained loss of the virus and control after treatment stops. The company's approach involves combining different therapeutic strategies to tackle the virus from multiple angles. Arbutus also possesses expertise and intellectual property in lipid nanoparticle (LNP) delivery technology, which is crucial for delivering RNA-based medicines.
Business Line 1: Hepatitis B Virus (HBV) Therapeutics
This is Arbutus's core business, where it focuses on developing combination therapies aimed at a functional cure for chronic hepatitis B. Their strategy involves a three-pronged approach: suppressing viral DNA, reducing viral surface antigens (like HBsAg), and boosting the patient's immune response. Key drug candidates in this area include Imdusiran (AB-729), an RNA interference (RNAi) therapeutic designed to reduce viral antigens, and AB-101, an oral PD-L1 inhibitor intended to help reawaken the immune system's response to the virus. These therapies are developed for patients suffering from chronic HBV, a condition affecting millions worldwide.
Business Line 2: Lipid Nanoparticle (LNP) Delivery Technology
Arbutus Biopharma has a significant stake in lipid nanoparticle (LNP) delivery technology. LNPs are like tiny envelopes that help deliver genetic material, such as RNA, into cells. This technology is vital for the development of RNA-based medicines, including RNA interference (RNAi) therapeutics like Imdusiran. Arbutus has leveraged this expertise through licensing agreements and has also been involved in significant patent litigation and settlements related to LNP technology, particularly due to its application in mRNA vaccines. This technology represents a valuable intellectual property asset for the company.
What management is betting on now
Management at Arbutus Biopharma is betting on its combination therapy approach to achieve a functional cure for chronic HBV. This strategy hinges on the synergistic effect of its pipeline drugs, Imdusiran and AB-101, to not only suppress the virus but also to restore the patient's immune system. They are also focused on maximizing the value of their LNP delivery technology through strategic partnerships and licensing. The company aims to transform the treatment paradigm for chronic HBV from lifelong viral suppression to a finite, curative regimen.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-20.74M
FY2024 Q4
$-10.40M
FY2025 Q1
$-13.39M
FY2025 Q2
$-15.75M
FY2025 Q3
$-5.82M
FY2025 Q4
$-4.68M
Revenue
$1.01M
Net income
$-5.14M
Diluted EPS
-0.03
Operating cash flow
$-6.02M
Free cash flow
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Sources
Revenue
$179.13M
Net income
$169.69M
Diluted EPS
0.87
Operating cash flow
$-8.11M
Free cash flow
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Sources
Revenue
$1.05M
Net income
$-3.76M
Diluted EPS
-0.01
Operating cash flow
$-4.68M
Free cash flow
$-4.68M
Fetching…
Sources
Revenue
$529.00K
Net income
$-7.74M
Diluted EPS
-0.04
Operating cash flow
$-5.82M
Free cash flow
$-5.82M
Fetching…
Sources
Revenue
$10.74M
Net income
$2.52M
Diluted EPS
0.01
Operating cash flow
$-15.75M
Free cash flow
$-15.75M
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Sources
Revenue
$1.76M
Net income
$-24.53M
Diluted EPS
-0.13
Operating cash flow
$-13.39M
Free cash flow
$-13.39M
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Sources
Revenue
$1.57M
Net income
$-12.53M
Diluted EPS
-0.07
Operating cash flow
$-10.31M
Free cash flow
$-10.40M
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Sources
Revenue
$1.34M
Net income
$-19.72M
Diluted EPS
-0.10
Operating cash flow
$-20.74M
Free cash flow
$-20.74M
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Sources
Is it cheap or expensive?
Fair value — vs current price $4.22
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $89.0M - more cash than debt. Interest coverage -278.9x.
Net debt
$-89.00M
Interest coverage
-278.88x
Arbutus Biopharma Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ABUS
BASELINE
Arbutus Biopharma Corporation
Total debt $3.62M Interest coverage -278.88x This is the baseline the peer rows are being compared against.
Total debt $38.57M Interest coverage -1.46x Neither company has much profit cushion over interest right now.
Total debt $688.32M Interest coverage 5.51x This peer still has a real interest-payment cushion, while ABUS does not.
Total debt $80.94M Interest coverage -53.46x Neither company has much profit cushion over interest right now.
Total debt $24.82M Interest coverage -9,479.76x Neither company has much profit cushion over interest right now.
Total debt $296.87M Interest coverage -4.98x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ABUS
3 Rewards
1 Risk
Rewards
-
Revenue grew 1190.4% last year.
-
Returns 89.6% on equity, ahead of 75% of its peers.
-
Trades at 5.3x P/E vs peer median 15.3x (65.1% cheaper).
Risks
-
Operating margin compressed from -162.0% to -567.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
5.34x
Forward P/E
-25.53x
P/B
3.22x
P/S
3.56x
EV/EBITDA
5.06x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
90.2%
Operating margin
-567.2%
Net margin
84.2%
ROE
89.6%
ROA
48.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
81.42x
Quick ratio
81.08x
Total debt
$3.62M
Total cash
$92.62M
Growth
How the business has been compounding
Revenue TTM
$181.72M
Revenue 5Y CAGR
6.4%
EPS TTM
0.79
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-24.62M
Free CF TTM
$-39.64M
FCF margin
-21.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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