Arbutus Biopharma: Should you buy shares after quarterly earnings?
Those who closely follow the second tier of biotechnology may have noticed that amid general apathy in the sector, Arbutus Biopharma (NASDAQ:ABUS) suddenly posted a quarter with net income. It didn’t just improve its financial performance, but rather changed its trajectory. This is a story that deserves attention not because of the numbers on the bottom line, but because of what’s behind them.
The company, which until recently was mainly associated with lawsuits against Moderna and Pfizer, now looks like a quiet contender in the race for a functional cure for chronic hepatitis B. And now, the main argument for investors has returned: profit.
The numbers are followed by changes
$10.7 million in revenue for the second quarter is not a record, and certainly not a sensation for the sector. But if last year Arbutus lost nearly $20 million in the same period, it has now posted a profit of $2.5 million. The company has terminated its partnership with China’s Qilu, regained full rights to its key asset, imdusiran, and made one of the most radical budgetary shifts in its segment.
The figures speak for themselves: research expenses fell from $15.6 million to $5.5 million, and administrative expenses from $7.5 million to $3.3 million. But more importantly, this was not a cut across the board. Arbutus simply removed the excess and left only the core.
Why this is important right now
In biotech, early-stage profitability is the exception rather than the rule. Companies are often valued based on clinical trial phases rather than financial statements. But the market has changed in 2025: investors are cautious, liquidity is becoming more expensive, and every line in a report is read literally.
This is where Arbutus finds itself in a new role. We are looking at a biotech company that has revenue, money in the bank (almost $100 million at its disposal), and expenses under control. And there is still a big question mark that could revalue the company many times over: the lawsuits against Moderna and Pfizer.
Arbutus Biopharma’s patents and principles
The history of patent claims by Arbutus and its licensee Genevant against Moderna and Pfizer has been developing for several years. The gist of it is this: both companies allegedly used lipid nanoparticles (LNP), a technology without which the delivery of mRNA vaccines would be impossible, without the appropriate licenses. For Arbutus, this is not just a legal position. It is a matter of recognition for its contribution to a key discovery of the decade.
The court case against Moderna in the US is moving towards a hearing scheduled for March 2026. Parallel lawsuits have been filed in 30 countries. Pfizer/BioNTech also remain at the center of the dispute: a decision in their case is expected as early as 2025. Potential compensation? No one is naming specific amounts, but it is clear that we are not talking about small change. For Arbutus, such an outcome could mean not just an influx of cash, but a complete transformation of its business.
The scientific front: all eyes on imdusiran
Work is underway in the company’s laboratories that could prove just as valuable. Imdusiran (AB-729) is a drug designed to reduce hepatitis B viral proteins, including HBsAg. This is not just another therapy. It is an attempt to do what no one has ever been able to do : bring chronic hepatitis B into a manageable state without the need for lifelong therapy.
In the early phases of therapy, there are already eight cases of functional cure. Not many? Certainly. But for HBV, this is a result that is difficult to ignore. And if the clinical data is confirmed in a larger sample, a partnership with a major pharmaceutical company may only be a matter of time.
Is the market aware of this?
Arbutus shares are not showing rapid growth. On the contrary, they remain at the lower end of the trading range, are often ignored by analysts, and do not appear on lists of “hot biotech stocks.” And this is perhaps the most interesting part.
The market does not see any obvious triggers for the company. But what if Arbutus wins the first phase of the patent dispute? Or if the FDA gives the green light to expand clinical programs? Or if a competitor comes forward with a partnership offer? Any of these developments could lead to a radical revaluation.
Against the tide: who are the competitors?
There are heavyweights in the HBV space: Gilead, Janssen, Vir Biotechnology. But Arbutus has its own niche. Imdusiran is not a universal blockbuster, but a highly specialized technology. The company is not trying to cover the entire market. It is betting on scientific validity and a targeted approach. In an environment where major players are looking for effective additions to their protocols, this strategy looks quite viable.
Long-term bet: should you buy Arbutus Biopharma shares?
To say that Arbutus shares are worth buying is to ignore the existing risks. It is still a small biotech company with one main therapy, dependent on legal outcomes and fluctuations in the sector.
But it would also be wrong to say that buying ABUS shares is illogical. This is one of those situations where the combination of revenue, scientific depth, legal potential, and strong cash reserves creates a unique balance between risk and potential growth. Perhaps the market has not yet recognized this. But that does not mean you cannot be the first to notice it.
If you are looking for undervalued stocks in other industries, take a look at the raw materials sector. One of the most interesting cases is Tronox Holdings, a global manufacturer of titanium dioxide. The company’s shares have long remained out of sight of investors, despite stable margins and growing demand. Read more about this in the article: Tronox shares: an undervalued asset with X2 potential.
