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Arbutus Biopharma Corp (ABUS) Q1 2024 Earnings Call Transcript Highlights: Strategic ...

GuruFocus Research
·4 min read

  • Cash, Cash Equivalents, and Investments: Approximately $138 million as of Q1 2024 end.

  • Net Proceeds from Common Shares Issuance: $21.8 million during Q1 2024.

  • Cash Used in Operations: $19.3 million during Q1 2024.

  • 2024 Net Cash Burn Forecast: Expected to range between $63 million to $67 million, excluding ATM program proceeds.

  • Additional Net Proceeds in April 2024: $22.4 million from ATM sales.

  • Cash Runway: Sufficient to fund operations through Q2 2026.

Release Date: May 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Arbutus Biopharma Corp (NASDAQ:ABUS) has initiated patient screening in their third Phase 2a clinical trial, AB-729-203, evaluating induceran in combination with durvalumab, an anti-PD-L1 monoclonal antibody.

  • The company reported preliminary data from the AB-101-001 Phase 1a/1b clinical trial, showing AB-101 is generally well tolerated with evidence of dose-dependent receptor occupancy.

  • Arbutus Biopharma Corp (NASDAQ:ABUS) ended the first quarter of 2024 with approximately $138 million in cash, cash equivalents, and investments, providing a strong financial position to advance their mission.

  • Two abstracts, including data from Phase 2a clinical trials, were accepted for presentation at the EASL Congress, indicating recognition in the scientific community.

  • The company has a robust pipeline with multiple ongoing clinical trials aimed at developing a functional cure for chronic HBV, leveraging their proprietary clinical assets.

Negative Points

  • The retirement of Co-Founder and Chief Scientific Officer, Dr. Mike Sofia, could impact the continuity and leadership within the company's scientific team.

  • Arbutus Biopharma Corp (NASDAQ:ABUS) is still in the early stages of clinical trials for several of their key assets, which means commercial viability and regulatory approval are still uncertain.

  • The company anticipates a net cash burn ranging from $63 million to $67 million for 2024, highlighting significant ongoing operational expenses.

  • The ongoing patent infringement lawsuit against Moderna involves uncertainties and potential financial liabilities depending on the outcome.

  • Arbutus Biopharma Corp (NASDAQ:ABUS) faces intense competition in the HBV treatment market, which could impact the adoption and success of their products if they reach the market.

Q & A Highlights

Q: Can you provide an update on when we might see a functional cure signal from the ongoing Phase 2 trials? A: Karen Sims, Chief Medical Officer, explained that the trials include a treatment period and an extended follow-up, with functional cure signals assessable only after subjects are six months off all treatments. Data will be shared as it becomes available from the ongoing Phase 2 studies.

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Q: What are the next steps for the AB-101 program after the multi-ascending dose phase in the ongoing Phase 1 study? A: Karen Sims mentioned that the next step would likely involve combining AB-101 with inducerin in a Phase 2 study, following the completion of the current Phase 1 study which includes multiple doses in patients with chronic hepatitis B.

Q: What is the rationale behind the different dosing intervals in the new Phase 2a study with durvalumab? A: Karen Sims discussed that the trial aims to find the optimal timing for checkpoint inhibitor dosing in the context of surface antigen reduction, balancing optimal immunomodulatory effects with a good safety profile.

Q: Can you discuss the enrollment updates for the nivolumab and Brentiximab vaccine trial? A: Karen Sims clarified that the target enrollment was 20 subjects, consistent with other arms in the study. Due to additional eligible subjects completing screening, they allowed 22 subjects to enter the trial.

Q: What are the expected advancements in the AB-101 program in terms of dosing and target engagement? A: Michael Sofia, Chief Scientific Officer, indicated that the receptor occupancy seen in clinical studies is encouraging and aligns with preclinical models. Karen Sims added that the ongoing trials have flexibility in dosing adjustments based on emerging safety and pharmacodynamic data.

Q: What are the plans for the AB-101 study after the multi-ascending dose phase? A: Karen Sims stated that the progression to part three of the study, which involves dosing in chronic hepatitis B patients, depends on the data from the current phase. The study protocol is integrated, allowing seamless progression once sufficient data is available.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.