Core Insights - Arbutus Biopharma Corporation reported a strong second quarter in 2025, with total revenue of $10.7 million, significantly up from $1.7 million in the same period in 2024, primarily due to the recognition of previously-deferred revenue following the conclusion of its partnership with Qilu Pharmaceutical [8][11] - The company has strengthened its leadership team by appointing Dr. Roger Sawhney to the Board of Directors and Dr. Harry Janssen to the Scientific Advisory Board, enhancing its expertise in chronic hepatitis B virus (cHBV) programs [2][6] - Arbutus maintains a solid financial position with cash, cash equivalents, and marketable securities totaling $98.1 million as of June 30, 2025, although this is a decrease from $122.6 million at the end of 2024 [7][15] Financial Performance - Total revenue for Q2 2025 was $10.7 million, a $9.0 million increase compared to Q2 2024, attributed to the conclusion of the partnership with Qilu and the recognition of deferred revenue [8][11] - Research and development expenses decreased to $5.5 million in Q2 2025 from $15.6 million in Q2 2024, reflecting cost-saving measures implemented by the company [9] - General and administrative expenses also saw a reduction, falling to $3.3 million in Q2 2025 from $7.5 million in Q2 2024, due to cost-cutting efforts [10] Corporate Developments - The company concluded its strategic partnership with Qilu Pharmaceutical for the development and commercialization of imdusiran in Greater China, regaining global rights for the compound [5][6] - Dr. Harry Janssen's appointment to the Scientific Advisory Board is expected to enhance the company's clinical development efforts in cHBV [2][6] - Anuj Hasija resigned from the Board of Directors to focus on a new role at Vertex Pharmaceuticals, and Dr. Roger Sawhney has been appointed to fill the vacancy [2][6] Legal and Intellectual Property - Arbutus is actively involved in litigation to protect its intellectual property related to its patented LNP technology, with ongoing lawsuits against Moderna and Pfizer/BioNTech [5] - The summary judgment phase of the litigation against Moderna began in July 2025, with a jury trial scheduled for March 2026 [5]

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry as of May 11, 2025 [1]. Core Insights - The A-share innovative drug sector saw a weekly increase of 2.33%, outperforming the CSI 300 index by 0.33 percentage points, while the biopharmaceutical sector rose by 0.75% [2][17]. - In the past six months, the A-share innovative drug sector has cumulatively increased by 5.43%, outperforming the CSI 300 index by 9.13 percentage points, whereas the biopharmaceutical sector has decreased by 10.55% [2][17]. - The Hong Kong innovative drug sector experienced a decline of 2.14%, underperforming the Hang Seng Index by 3.75 percentage points, with a cumulative increase of 22.08% over the past six months [2][20]. - The XBI index in the US fell by 8.59% this week, with a cumulative decline of 22.72% over the past six months [2][23]. Summary by Sections Domestic Key Innovative Drug Progress - In May, one new drug was approved for market launch in China, with no new indications approved [3][41]. Overseas Key Innovative Drug Progress - In May, there were no NDA or BLA approvals in the US, Europe, or Japan for innovative drugs [4][45]. Global Key Innovative Drug Transaction Progress - A total of 12 key transactions occurred globally this week, with one disclosed transaction amounting to 415 million USD between Alchemab Therapeutics and Eli Lilly [5]. Market Performance - The report indicates that 39 stocks in the innovative drug sector rose while 67 fell during the week, with the top gainers being HaiChuang Pharmaceutical-U (22.76%), Changchun High-tech (8.99%), and Zhongsheng Pharmaceutical (8.98%) [2][16]. - The top decliners included Fuhong Hanlin (-12.64%), Connaught-B (-12.40%), and Boan Biotechnology (-11.77%) [2][16]. Clinical Trials and Approvals - In May, there were 23 newly announced clinical trials in China, including 17 in BE/I phase, 4 in II phase, and 2 in III phase [31].

Core Insights - Arbutus Biopharma Corporation presented promising data on imdusiran and AB-101 at the EASL Congress 2025, indicating potential for functional cure in chronic hepatitis B patients [1][5] Group 1: Imdusiran and Clinical Trials - Imdusiran, when combined with VTP-300 and low-dose nivolumab, has shown to achieve functional cure in chronic hepatitis B (cHBV) patients [1] - In the Phase 2a clinical trial (IM-PROVE II), patients receiving imdusiran (60mg every 8 weeks) demonstrated significant reductions in HBsAg levels, with 25% of patients in the group receiving nivolumab achieving functional cure [2][7] - A total of 8 patients across all Phase 2a trials have been reported to achieve functional cure, with 7 of these having baseline HBsAg levels below 1000 IU/mL [3] Group 2: AB-101 and Safety Profile - AB-101, an oral PD-L1 inhibitor, has been shown to be generally safe and well-tolerated in a Phase 1a/1b clinical trial, with no liver dysfunction reported in cHBV patients [1][4] - Data from the first cohort of cHBV patients indicated that daily dosing of 10mg of AB-101 for 28 days was well tolerated, with no immune-related adverse events reported [4][10] Group 3: Background on Hepatitis B and Arbutus - Chronic hepatitis B infection represents a significant unmet medical need, affecting over 250 million people globally, with approximately 1.1 million deaths annually from related complications [11] - Arbutus Biopharma is focused on developing innovative therapies for infectious diseases, particularly chronic HBV infection, and is also involved in legal actions to protect its intellectual property [12]

Core Insights - Arbutus Biopharma Corporation announced the acceptance of five abstracts for presentation at the EASL Congress 2025, including one late-breaker, highlighting the company's ongoing research in hepatitis B treatments [2][9]. Group 1: Abstract Presentations - Five abstracts will be presented in the Viral Hepatitis B and D session on May 8, 2025, showcasing new therapies and strategies [3]. - The late-breaker abstract will focus on the antiviral efficacy and safety of imdusiran followed by VTP-300 in chronic hepatitis B subjects [9]. Group 2: Key Findings from Abstracts - Abstract 1768 discusses the factors associated with functional cure in chronic hepatitis B subjects, indicating that baseline HBsAg levels are significant [4]. - Abstract 2043 reveals that rapid HBV RNA decline during treatment with imdusiran and interferon is linked to HBsAg seroclearance [6]. - Abstract 1990 presents the pharmacokinetics and pharmacodynamics of AB-101, showing it to be safe and well-tolerated with dose-responsive increases in PD-L1 receptor occupancy [7]. - Abstract 1978 indicates that AB-101 is well-tolerated in both healthy and chronic hepatitis B subjects, with ongoing dosing studies [8]. Group 3: Product Information - Imdusiran is an RNAi therapeutic designed to reduce HBV viral proteins, showing promising results in Phase 2a trials for achieving functional cure rates [10]. - AB-101 is an oral PD-L1 inhibitor currently in Phase 1a/1b trials, aimed at reactivating exhausted HBV-specific T-cells [11]. Group 4: Industry Context - Chronic hepatitis B infection affects over 250 million people globally, representing a significant unmet medical need, with approximately 1.1 million deaths annually from related complications [12].