Arbutus Biopharma Reports 90% Revenue Decline in Q2 2026, Despite Surge in Six-Month Revenue

Arbutus Biopharma Corporation reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company generated total revenue of $1.014 million for the three months ended June 30, 2026, a decrease of approximately 90% compared to $10.739 million in the same period last year. For the six months ended June 30, 2026, revenue surged to $180.140 million, up from $12.503 million in the prior year, primarily due to the recognition of $179.373 million in license revenue from Genevant Sciences, a substantial increase attributed to a settlement agreement with Moderna. Despite this revenue spike, the company reported a net loss of $5.143 million for the quarter, contrasting with a net income of $2.523 million in the same quarter of 2025.

The financial performance reflects a notable shift in revenue sources, particularly following the conclusion of a strategic partnership with Qilu Pharmaceutical, which resulted in the recognition of previously deferred revenue. Operating expenses for the second quarter of 2026 totaled $6.978 million, down from $9.251 million in the same quarter of 2025, driven by reduced research and development costs as the company streamlined operations and focused on advancing its clinical programs. The decrease in operating expenses was also influenced by the company's restructuring efforts initiated in March 2025, which included workforce reductions and the discontinuation of in-house scientific research.

In terms of strategic developments, Arbutus has made significant progress in its clinical pipeline, particularly with its lead product candidate, imdusiran (AB-729), which has received Fast Track designation from the FDA for the treatment of chronic hepatitis B (cHBV). The company is also advancing its oral PD-L1 inhibitor, AB-101, and has reached alignment with the FDA on the design of a proposed Phase 2b clinical trial for imdusiran. Additionally, the company is actively involved in ongoing patent infringement litigation against Pfizer and BioNTech, seeking compensation for the use of its patented lipid nanoparticle technology in their COVID-19 vaccines.

As of June 30, 2026, Arbutus reported total assets of $274.025 million, a significant increase from $94.618 million at the end of 2025, largely due to the receivable from the Genevant license. The company had cash and cash equivalents of $19.171 million, alongside investments in marketable securities totaling $73.454 million. The company’s total liabilities decreased to $15.292 million from $18.042 million at the end of 2025, reflecting improved financial health. Looking ahead, Arbutus believes it has sufficient cash resources to fund operations for at least the next 12 months, bolstered by the recent settlement payments and ongoing clinical development efforts.