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ABUS stock touches 52-week high at $3.98 amid robust gains

Published 03/09/2024, 14:48
ABUS
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Arbutus Biopharma Corporation (NASDAQ:ABUS) stock has reached a 52-week high, trading at $3.98. This milestone reflects a significant uptrend for the biopharmaceutical company, known for its innovative hepatitis B treatments. Over the past year, the stock has witnessed an impressive surge, with Tekmira Pharmaceuticals Corp , which merged with Arbutus's former incarnation, OnCore Biopharma, to form the current entity, reporting a 1-year change of 91.95%. This substantial increase underscores investor confidence and the potential impact of the company's therapeutic pipeline on the healthcare market.

In other recent news, Arbutus Biopharma Corp and Genevant Sciences have postponed a patent infringement trial with Moderna (NASDAQ:MRNA), Inc. to 2025, related to Moderna's COVID-19 vaccine, MRNA-1273. The delay is intended to allow for additional discovery time. This legal action arises from Arbutus and Genevant's claims that Moderna's vaccine infringes on patents they hold. The revised schedule, which is pending the court's approval, signifies a lengthy legal process ahead.

Simultaneously, Arbutus Biopharma has reported positive data from Phase 2a trials of its RNAi therapeutic imdusiran, showing potential as a hepatitis B treatment. The company plans to initiate Phase 2b clinical development for imdusiran, backed by the current cash balance of approximately $148.5 million. Arbutus Biopharma also announced a workforce reduction of 40% to extend its financial runway through the fourth quarter of 2026. These recent developments highlight the company's strategic focus on advancing its lead hepatitis B candidate while managing legal complexities.

InvestingPro Insights

As Arbutus Biopharma Corporation (ABUS) celebrates its recent stock price high, a closer look at the company's financial health and market performance offers additional context for investors. According to InvestingPro data, ABUS currently holds a market capitalization of approximately $748.71 million. Despite the positive momentum in share price, analysts have flagged concerns, including weak gross profit margins and an anticipated sales decline in the current year. This is reflected in the company's revenue, which has seen a significant decrease of 57.25% over the last twelve months as of Q2 2024.

InvestingPro Tips reveal that ABUS has more cash than debt on its balance sheet and liquid assets that exceed short-term obligations, presenting a potentially stable financial position in terms of liquidity. However, the company is not expected to be profitable this year, and it trades at a high revenue valuation multiple of 5.97, which may raise questions about its current valuation. With a 1-year price total return of 88.78% and trading near its 52-week high, the stock's recent performance has been strong. For those interested in a deeper dive, InvestingPro offers additional tips on ABUS, which can be found at Investing.com/pro/ABUS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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