Arbutus Biopharma(ABUS) - 2024 Q4 - Annual Report

Organizational Changes - Arbutus Biopharma streamlined its organization, reducing workforce by 40% in 2024 and an additional 57% in early 2025, resulting in a total of 19 employees remaining[315] - The company expects a one-time restructuring charge of approximately $11 million to$13 million in Q1 2025 due to organizational changes[315] - A one-time restructuring charge of approximately $3.7 million was incurred in Q3 2024 due to workforce reduction and discontinuation of certain clinical trials[360] - The company expects to significantly reduce net cash burn in 2025 compared to 2024 due to organizational changes and ongoing cost management efforts[371] Financial Performance - Total revenue for the year ended December 31, 2024, was$6.171 million, a decrease of $12.0 million compared to$18.141 million in 2023[348] - Net loss for 2024 was $69.9 million, or a loss of$0.38 per share, compared to a net loss of $72.8 million, or a loss of$0.44 per share in 2023[348] - Revenue from royalties on sales of Onpattro decreased to $2.562 million in 2024, representing 41$3.608 million or 20% in 2023[349] - Operating expenses for 2024 totaled $82.490 million, down from$96.244 million in 2023[348] - Other income increased to $6.399 million in 2024, up from$5.254 million in 2023, driven by a rise in interest income[361] - The company incurred a net loss of $69.9 million in 2024, compared to a net loss of$72.8 million in 2023[375] Research and Development - Over 250 patients with chronic hepatitis B (cHBV) have been dosed with imdusiran, achieving a functional cure rate of 50% in HBeAg-negative patients with baseline HBsAg levels less than 1000 IU/mL[323] - AB-101, an oral PD-L1 inhibitor, is currently in a Phase 1a/1b clinical trial, with evidence of dose-dependent receptor occupancy and generally well-tolerated results[324] - Research and development expenses decreased by $19.7 million to$54.037 million in 2024, primarily due to the discontinuation of certain programs and a 40% workforce reduction[354][360] Revenue Generation and Agreements - Revenue generation primarily comes from collaboration and license agreements, which may include upfront payments, milestone payments, and royalties[338] - Arbutus has a technology transfer and license agreement with Qilu Pharmaceutical, which includes a one-time upfront cash payment of $40 million and potential milestone payments up to$245 million[326] - Qilu is responsible for all costs related to developing and commercializing imdusiran in Greater China and Taiwan, with royalties payable in the low twenties percent based on annual net sales[326] - The company has obligations to make potential future payments of up to $102.5 million related to the acquisition of Enantigen Therapeutics, contingent on achieving certain commercial milestones[335] - Arbutus owns approximately 16$122.6 million, with no outstanding debt[365] - Net cash used in operating activities decreased by $21.1 million in 2024 compared to 2023, primarily due to reduced research and development expenses[375] - Net cash provided by investing activities decreased by$27.8 million in 2024 compared to 2023, mainly due to the timing of acquisitions and maturities of investments[376] - Net cash provided by financing activities increased by $21.3 million in 2024 compared to 2023, driven by a$14.2 million increase in proceeds from sales of common shares[376] - Cash and cash equivalents at the end of the period increased to $36.3 million in 2024 from$26.3 million in 2023[375] Legal Matters - The company is involved in multiple patent infringement lawsuits, which may require substantial resources and could impact financial results[20]