Arbutus Reports First Quarter 2026 Financial Results and Provides Corporate Update

Q1 total revenue of $179.1M includes estimated license revenue from Genevant related to litigation settlement with Moderna

Strong financial position with cash, cash equivalents and marketable securities of $95.2M as of March 31, 2026

FDA granted Fast Track designation to imdusiran, which has the potential to facilitate development and accelerate FDA review

WARMINSTER, Pa., May 13, 2026 (GLOBE NEWSWIRE) -- Arbutus Biopharma Corporation (Nasdaq: ABUS) (“Arbutus” or the “Company”), a clinical-stage biopharmaceutical company focused on infectious disease, today reported first quarter 2026 financial results and provided a corporate update.

LNP Litigation

On March 3, 2026, Arbutus, along with its exclusive licensee, Genevant Sciences (“Genevant”), entered into a settlement agreement to resolve all global patent infringement litigation and patent revocation proceedings involving Moderna. As part of the settlement, Moderna will pay Arbutus and Genevant $950 million upfront in July 2026 (the “Noncontingent Settlement Payment”) and an additional $1.3 billion contingent upon an appellate ruling that 28 U.S.C. §1498 does not bar Arbutus’ and Genevant’s claims against Moderna for patent infringement, except as to doses characterized by the district court as having gone to U.S. government employees. Under the Company’s license with Genevant, the Company expects to receive in July 2026 an estimated $178.7 million of the Noncontingent Settlement Payment, which includes reimbursement of the Company’s litigation costs. In addition, the Company owns approximately 16% of the outstanding common equity of Genevant. For more information about the terms and conditions of the settlement with Moderna, including the contingent payment, please refer to Arbutus’ Quarterly Report on Form 10-Q to be filed with the SEC on May 13, 2026 and Annual Report on Form 10-K filed with the SEC on March 23, 2026.

Corporate Updates

In April 2026, the U.S. Food and Drug Administration (“FDA”) granted Fast Track designation for imdusiran for the treatment of chronic hepatitis B. The FDA’s Fast Track program is designed to facilitate the development and expedite the review of investigational therapies to treat serious conditions with unmet medical need. A drug granted Fast Track designation may be eligible for several benefits, including earlier and more frequent meetings and communications with the FDA and the potential for rolling review of its application. If relevant criteria are met, investigational therapies that receive Fast Track designation may also qualify for Accelerated Approval or Priority Review of a Biologics License Application or New Drug Application.

Financial Results

Cash, Cash Equivalents and Investments

As of March 31, 2026, the Company had cash, cash equivalents and investments in marketable securities of $95.2 million compared to $91.5 million as of December 31, 2025. During the three months ended March 31, 2026, the Company used $8.1 million in operating activities, which included one-time payments related to its restructuring efforts, and received $11.5 million of proceeds from the exercise of stock options.

Revenue

Total revenue was $179.1 million for the quarter ended March 31, 2026, compared to $1.8 million for the same period in 2025. The increase of $177.4 million was due to license revenue from Genevant related to the Company’s portion of the Noncontingent Settlement Payment.

Operating Expenses

Research and development expenses were $4.1 million for the quarter ended March 31, 2026, compared to $9.0 million for the same period in 2025. The decrease of $4.8 million was due primarily to cost savings from the Company’s decisions to reduce its workforce and discontinue in-house scientific research, as well as lower clinical trial costs as studies neared completion.

General and administrative expenses were $5.9 million for the quarter ended March 31, 2026, compared to $5.8 million for the same period in 2025. This increase was due primarily to higher legal fees driven by the settlement with Moderna, partially offset by cost-cutting efforts by the Company, which drove reductions in employee compensation-related expenses.

There were no restructuring costs in the quarter ended March 31, 2026, compared to $12.4 million for the same period in 2025.

Net Income/Loss

For the quarter ended March 31, 2026, the Company’s net income was $169.7 million, or income of $0.88 per basic and $0.87 per diluted common share, as compared to a net loss of $24.5 million, or a loss of $0.13 per basic and diluted common share, for the quarter ended March 31, 2025.

Outstanding Shares

As of March 31, 2026, the Company had 196.9 million common shares issued and outstanding, as well as 9.7 million stock options and unvested restricted stock units outstanding.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND LOSS(in thousands, except share and per share data)

Three Months Ended March 31,

2026

2025

Revenue

Collaborations and licenses

$

204

$

1,316

License revenue from Genevant

178,741

—

Non-cash royalty revenue

181

448

Total revenue

179,126

1,764

Operating expenses

Research and development

4,120

8,959

General and administrative

5,889

5,832

Change in fair value of contingent consideration

209

299

Restructuring costs

—

12,373

Total operating expenses

10,218

27,463

Income (loss) from operations

168,908

(25,699

)

Other income

Interest income

815

1,197

Interest expense

(17

)

(28

)

Foreign exchange (loss) gain

(11

)

4

Total other income

787

1,173

Net income (loss)

$

169,695

$

(24,526

)

Net income (loss) per common share

Basic

$

0.88

$

(0.13

)

Diluted

$

0.87

$

(0.13

)

Weighted average number of common shares

Basic

193,768,641

190,707,085

Diluted

195,214,067

190,707,085

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)

March 31,2026

December 31,2025

Cash, cash equivalents and marketable securities, current

$

95,226

$

91,471

License receivable from Genevant

178,741

—

Accounts receivable and other current assets

3,044

2,985

Total current assets

277,011

94,456

Property and equipment, net of accumulated depreciation and impairment

22

32

Other non-current assets

131

130

Total assets

$

277,164

$

94,618

Accounts payable and accrued liabilities

$

4,474

$

5,459

Lease liability, current

631

547

Total current liabilities

5,105

6,006

Liability related to sale of future royalties

3,278

3,442

Contingent consideration

8,604

8,395

Lease liability, non-current

—

199

Total stockholders’ equity

260,177

76,576

Total liabilities and stockholders’ equity

$

277,164

$

94,618

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Three Months Ended March 31,

2026

2025

Net income (loss)

$

169,695

$

(24,526

)

Non-cash items

1,061

5,866

License receivable from Genevant

(178,741

)

—

Other changes in working capital

(125

)

5,269

Net cash used in operating activities

(8,110

)

(13,391

)

Net cash provided by investing activities

2,199

11,349

Net cash provided by financing activities

11,619

2,784

Effect of foreign exchange rate changes on cash and cash equivalents

(10

)

4

Increase in cash and cash equivalents

5,698

746

Cash and cash equivalents, beginning of period

18,008

36,330

Cash and cash equivalents, end of period

23,706

37,076

Investments in marketable securities

71,520

75,631

Cash, cash equivalents and marketable securities, end of period

$

95,226

$

112,707

About Imdusiran (AB-729)

Imdusiran is an RNAi therapeutic specifically designed to reduce all hepatitis B viral proteins and antigens, including hepatitis B surface antigen (“HBsAg”), which is thought to be a key prerequisite to enable reawakening of a patient’s immune system to control the virus. Imdusiran targets hepatocytes using Arbutus’ novel covalently conjugated N-Acetylgalactosamine delivery technology enabling subcutaneous delivery. In Arbutus’ Phase 2a clinical trials, eight patients with chronic hepatitis B (“cHBV”) achieved functional cure following treatment with imdusiran and nucleos(t)ide analogue (“NA”) therapy in combination with either pegylated interferon alfa-2a or low dose nivolumab plus an immunotherapeutic, with six out of the eight patients continuing to sustain functional cure for over two years. An additional 41 patients across the Company’s Phase 2a clinical trials were able to remain off NA therapy for at least 48 weeks during their Phase 2a clinical trials following treatment with imdusiran. Two additional patients who discontinued NA therapy in their Phase 2a clinical trials have now achieved functional cure during their participation in long-term follow-up. Functional cure is defined as sustained HBsAg seroclearance and hepatitis B virus deoxyribonucleic acid (“HBV DNA”) less than the lower limit of quantification after 24 weeks off treatment, with or without anti-hepatitis B surface antibodies. Clinical data generated thus far has shown imdusiran to be generally safe and well-tolerated, while also providing meaningful reductions in HBsAg and HBV DNA.

About HBV

Hepatitis B is a potentially life-threatening liver infection caused by hepatitis B virus (“HBV”). HBV can cause chronic infection which leads to a higher risk of death from cirrhosis and liver cancer. cHBV infection represents a significant unmet medical need. The World Health Organization estimates that over 250 million people worldwide suffer from cHBV infection, while other estimates indicate that approximately 2 million people in the United States suffer from cHBV infection. Approximately 1.1 million people die every year from complications related to cHBV infection despite the availability of effective vaccines and current treatment options.

About Arbutus

Arbutus Biopharma Corporation (Nasdaq: ABUS) is a clinical-stage biopharmaceutical company focused on infectious disease. The Company is currently