Arbutus Biopharma reported third-quarter 2026 results alongside updates on its patent litigation, an experimental drug and its capital return to shareholders. The clinical-stage biotech ended September with $337.5 million in cash and marketable securities, then returned $230 million to shareholders through a tender offer completed in early October.
The company also said the FDA lifted a clinical hold on its investigational oral PD-L1 inhibitor AB-101, and that it had expanded patent-infringement actions against Pfizer and BioNTech in Japan and Canada.
Financial position and shareholder return
- Arbutus had $337.5 million in cash, cash equivalents and marketable securities at September 30, compared with $91.5 million at the end of 2025. The September figure includes a $67.3 million cash dividend from Genevant.
- In early October, the company completed a tender offer that returned $230 million to shareholders. That payment came after the September 30 balance-sheet date, so the $337.5 million figure predates the capital return.
- For the first nine months of 2026, Arbutus generated $225.7 million in net cash from operating activities and received $19.3 million from stock-option exercises.
Business and development updates
- The FDA lifted the clinical hold on the U.S. investigational-new-drug application for AB-101, an oral PD-L1 inhibitor. The company’s CEO said the hold was lifted following a successful Phase 1 trial abroad.
- Arbutus filed new patent-infringement lawsuits against Pfizer and BioNTech in Japan. It also amended its existing Canadian case to add a claim involving a newly issued Canadian lipid nanoparticle patent.
- The company’s litigation concerns lipid nanoparticle technology. The update did not provide further details about the Japanese cases or their potential financial outcome.
Third-quarter results
- Revenue was $0.3 million, down from $0.5 million a year earlier. Arbutus attributed the decline mainly to lower license royalties, primarily reflecting reduced ONPATTRO sales by Alnylam.
- Research and development expenses fell to $2.6 million from $5.8 million. The company cited workforce reductions, the discontinuation of in-house scientific research and lower clinical-trial costs as studies neared completion.
- General and administrative expenses rose to $8.0 million from $3.0 million. The increase was attributed mainly to higher employee compensation, including one-time cash bonuses for executives tied to the company’s efforts and accomplishments.