Arbutus Biopharma reported third‑quarter 2025 results that included a revenue of $0.529 million and a net loss of $7.7 million, a 12‑month decline in revenue driven largely by a sharp drop in license‑royalty income from Alnylam’s ONPATTRO sales. The company’s operating cash used during the nine‑month period was $35 million, a 54 % reduction from $19.3 million in the same period a year earlier, reflecting aggressive cost‑cutting and workforce reductions that have tightened the company’s operating expenses.
Cash, cash equivalents and marketable securities stood at $93.7 million as of September 30, 2025, down from $122.6 million at the end of 2024. The decline in cash balances is largely attributable to the company’s focus on preserving runway for the next phase of its imdusiran program, while the lower operating cash burn signals that the cost‑control measures are taking effect. The net loss narrowed from $9.4 million in Q3 2024, indicating that the company’s expense reductions are translating into a more favorable bottom line.
Clinically, the Phase 2a data for imdusiran remain encouraging. Forty‑six percent of all Phase 2a patients—48 out of 105—were able to discontinue nucleoside‑analogue therapy after meeting study‑defined criteria. Eight patients achieved a functional cure at the 60 mg dose, and an additional 40 patients discontinued therapy after meeting the same criteria. Seven of the eight cured patients have remained off treatment for more than two years, underscoring the durability of the response. These results support the planned transition to a Phase 2b trial and provide a compelling rationale for accelerating regulatory engagement.
Management highlighted the dual nature of the quarter’s performance. President and CEO Lindsay Androski said the company’s “strength in the third quarter reflects disciplined execution of strategic priorities, particularly the focus on cost discipline and the continued progress of our lead HBV candidate.” She added that the company remains committed to advancing imdusiran while managing the LNP‑technology litigation, which could shape future revenue streams. The company’s guidance for the remainder of 2025 remains unchanged, but the earnings miss relative to the consensus of $1.31 million in revenue indicates that the royalty decline will continue to weigh on top‑line growth until the company can secure new licensing or product sales.
Analysts had expected revenue of $1.31 million; the $0.529 million reported represents a miss of $0.801 million, or 61 %. The net loss of $7.7 million translates to an earnings per share of –$0.04, which aligns closely with the consensus estimate of –$0.041, indicating that the company’s cost‑control measures have kept the loss in line with expectations. The company’s cash burn trajectory and the durability of the clinical data suggest that, while revenue growth is currently constrained, the long‑term prospects for imdusiran remain strong.
The market reaction to the earnings was muted, with no significant analyst upgrades or downgrades reported. Investors appear to be weighing the company’s strong clinical data against the revenue miss and the ongoing litigation, leading to a cautious but not negative response. The company’s focus on cost discipline and the promising clinical trajectory of imdusiran are likely to be viewed as positive long‑term drivers, while the revenue decline and litigation risks remain headwinds that will be monitored closely.
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