ABUS — Arbutus Biopharma Corp

Summary of ABUS Q3 2024 Earnings Call

1. Key Financial Results and Metrics:

• Cash, cash equivalents, and marketable securities totaled approximately $131 million, slightly down from $132 million at the end of 2023.
• The company reported a cash burn of $54.5 million in the first half of 2024 and expects a total cash burn for the year to range between $63 million and $67 million.
• The current cash runway is projected to fund operations into Q4 2026, assuming no additional financing.

2. Strategic Updates and Business Highlights:

• Arbutus Biopharma is focused on developing a functional cure for chronic hepatitis B virus (HBV) infection, with ongoing Phase IIa clinical trials (IM-PROVE I and IM-PROVE II) for their RNAi therapeutic, imdusiran.
• Positive data from IM-PROVE I showed that 33% of patients achieved sustained surface antigen loss, with a higher rate (67%) in patients with baseline surface antigen levels below 1,000 IU/mL.
• IM-PROVE II is evaluating the combination of imdusiran with a therapeutic vaccine and anti-PD-1 monoclonal antibody, with preliminary data expected at the upcoming AASLD meeting.
• The company is also advancing AB-101, an oral PD-L1 checkpoint inhibitor, which is currently in a Phase Ia/Ib trial. Data from this trial is anticipated in the first half of 2025.

3. Forward Guidance and Outlook:

• The company plans to advance imdusiran into a Phase IIb clinical trial based on positive data from the ongoing studies.
• They aim to provide updates on clinical data from the IM-PROVE trials and AB-101 in the near term, particularly following the AASLD meeting.
• No additional financing is anticipated in the near term, as current projections do not include proceeds from the at-the-market (ATM) offering program.

4. Bad News, Challenges, or Points of Concern:

• The company did not issue any common shares under the ATM program in Q3 2024, which may limit immediate funding options.
• There are ongoing litigations with Moderna and Pfizer/BioNTech regarding LNP intellectual property, with trial dates set for September 2025 and a claim construction hearing in December 2024, respectively. The outcomes of these litigations could impact future operations and financials.
• The challenge of achieving a functional cure for HBV remains significant, with current therapies yielding low cure rates, necessitating innovative combinations to improve patient outcomes.

5. Notable Q&A Insights:

• Management clarified that the functional cure rate goal is set at 20%, which is considered meaningful compared to existing therapies.
• There was discussion on the trial design for IM-PROVE I and A2 cohorts, emphasizing the importance of baseline surface antigen levels in predicting treatment success.
• The company is exploring various study designs for future trials, particularly regarding the timing and patient stratification for imdusiran.
• Questions regarding the AB-101 trial indicated that while preliminary data will be available, expectations for immediate effects on HBV response may be tempered due to the short treatment duration in the initial phases.

Overall, Arbutus Biopharma remains committed to its mission of developing innovative treatments for HBV, with a strong financial position to support its ongoing clinical programs, despite facing challenges in the competitive landscape and ongoing legal matters.