Arbutus Q1 2020 Earnings Report
Key Takeaways
Arbutus Biopharma reported a net loss attributable to common shares of $16.8 million, or $0.25 per share, for the first quarter of 2020. The company's cash, cash equivalents, and investments totaled $88.1 million as of March 31, 2020, which is expected to fund operations into mid-2021. Arbutus is advancing its clinical trials and preclinical research, including a new research initiative to identify novel antiviral therapies for COVID-19.
Arbutus remains on track to achieve its key 2020 objectives despite COVID-19 challenges.
Preliminary results from an ongoing Phase 1a/1b clinical trial for AB-729 demonstrate that it is a potent RNAi agent capable of reducing HBsAg plasma levels.
Arbutus initiated an internal research program to identify new small molecule antiviral medicines to treat COVID-19 and future coronavirus outbreaks.
Arbutus had cash, cash equivalents and investments totaling $88.1 million as of March 31, 2020, sufficient to fund operations into mid-2021.
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Arbutus Revenue by Segment
Forward Guidance
Arbutus provided forward-looking statements regarding the timing and clinical development of its product candidates, expectations for data availability, planned 2020 objectives and cash burn guidance, potential safety and efficacy of product candidates, expectations for research efforts to combat COVID-19, and the expected sufficiency of cash to fund operations.
Positive Outlook
- Certain data from the 60 mg single-dose cohort will be available in the second quarter of 2020.
- Results from the multi-dose 60 mg and single-dose 90 mg cohorts will be available in the second half of 2020.
- IND-enabling studies for AB-836 will be complete by the end of 2020.
- Arbutus expects AB-836 to have increased potency and an enhanced resistance profile compared to AB-506.
- Ending first quarter cash, cash equivalents and investments are expected to be sufficient to fund operations into mid-2021.
Challenges Ahead
- Pre-clinical studies and clinical trials may be more costly or take longer to complete than anticipated.
- Arbutus may not receive the necessary regulatory approvals for the clinical development of Arbutus’ products.
- Economic and market conditions may worsen.
- Market shifts may require a change in strategic focus.
- The ongoing COVID-19 pandemic could significantly disrupt clinical development programs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income