Arbutus Biopharma Corp

Arbutus Biopharma traded higher on Wednesday after the antimicrobial drug developer announced plans to repurchase 46M shares of its common stock at $5 each as part of a previously disclosed tender offer. The buyback is a sub-component of a modified Dutch auction tender offer, announced in August, to repurchase up to $230M of shares at a range between $5.00 and $5.75 per share. Announcing early results of the offer, which expired on Sept. 29, the Pennsylvania-based biotech said roughly 23% of its issued and outstanding shares will be cancelled and nearly 153.3M shares will remain outstanding after the transaction. Roivant Sciences, one of its biggest shareholders, will continue to hold nearly 20% of the stake after making a proportionate tender offer, Arbutus added.

Stifel initiated coverage of Roivant Sciences with a Buy rating and a $51 price target on September 16, projecting roughly $9 billion in ownership-adjusted sales for the company by 2037. The call centers on Lisraya, or brepocitinib, which the FDA approved on August 27 for adults with dermatomyositis, making it the first FDA-approved oral treatment for the rare disease. Roivant is also evaluating brepocitinib in non-infectious uveitis, with Phase 3 topline data expected in the second half of 2026, in cutaneous sarcoidosis, with Phase 3 data expected in 2028, and in lichen planopilaris, where enrollment in Part 1 of a Phase 2b/3 study is on course. Beyond brepocitinib, the anti-FcRn antibody IMVT-1402 is advancing in several autoimmune indications with clinical updates expected in 2026, and mosliciguat posted positive Phase 2 results in pulmonary hypertension associated with interstitial lung disease, showing a 56.3% placebo-adjusted reduction in pulmonary vascular resistance at Week 16, prompting a Phase 3 program. Roivant reported $3.9 billion in cash, cash equivalents, restricted cash, and marketable securities at June 30, and in July Genevant and Arbutus received an aggregate $950 million payment from Moderna through a patent infringement settlement, with Genevant receiving $771.6 million. Hedge fund interest rose to 64 holders at the end of Q2 from 60 in Q1 and 52 in Q4, while short interest stood at 33.5 million shares as of August 31, equal to 5.09% of the public float.

Arbutus Biopharma plans to launch a modified Dutch auction tender offer to repurchase up to $230 million of its common shares at $5 to $5.75 per share. The offer is expected to begin on or around August 24 and expire around September 29, with the company using cash on hand to fund the repurchases. Stock rose 12% in Friday premarket trading.

Moderna's stock surged 176.9% to $174.38 on August 19, 2026, lifting its market capitalization to roughly $69.6 billion and strengthening its acquisition currency. The company still guides to a year-end 2026 cash and investments balance of between $4.7 billion and $5.2 billion, plus an undrawn $0.9 billion credit facility, and the $950 million Arbutus/Genevant settlement is largely resolved. CEO Stéphane Bancel said Moderna is preparing for "the growth stage of a company coming ahead of us," though management has not signaled M&A intent. Potential targets include Immatics, with a $1.3 billion market cap and an existing collaboration; Arbutus Biopharma, at $957.6 million, whose acquisition would extinguish $1.3 billion in contingent LNP patent exposure; Intellia Therapeutics, at $1.9 billion, with Phase 3 lonvo-z showing an 87% reduction in hereditary angioedema attacks; and Editas Medicine, at $442.3 million, offering cardiometabolic pipeline access.

Immunovant reported a cash balance of $797.8 million as of June 30, 2026, which management stated provides a runway to the potential commercial launch of IMVT-1402 in Graves' disease. Research and development expenses were $142.6 million for the quarter, compared to $101.2 million in the prior year, primarily due to increased clinical trial activities for IMVT-1402 and contract manufacturing costs. The company reported a net loss of $153.2 million, or $0.75 per common share, for the three months ended June 30, 2026, and a non-GAAP net loss of $139.4 million excluding $13.8 million in non-cash stock-based compensation. Management expects topline data from the proof-of-concept trial in cutaneous lupus erythematosus in the second half of 2026, and topline data for the potentially registrational trials in Graves' disease and myasthenia gravis in calendar year 2027. Roivant, the parent company, received an upfront payment of $950 million from the Moderna settlement, with $770 million allocated to Genevant and the remainder to Arbutus, and reported a cash balance of just under $4 billion prior to the receipt of the Moderna settlement funds.

Arbutus Biopharma reported second quarter 2026 financial results and announced it received a first payment of approximately $178 million in July from its $950 million settlement with Moderna, and expects to return up to approximately $230 million to shareholders through share repurchases starting in the third quarter. The company also filed three international patent infringement lawsuits against Pfizer and BioNTech related to its lipid nanoparticle technology, and achieved alignment with the FDA on a Phase 2b clinical trial design for its chronic hepatitis B drug candidate imdusiran. As of June 30, 2026, Arbutus held cash, cash equivalents and marketable securities of $92.6 million, and reported a net loss of $5.1 million for the quarter.

Pfizer is facing expanded patent litigation from Arbutus Biopharma and Genevant Sciences over mRNA lipid nanoparticle technology, with new international cases adding legal and operational questions for its COVID-19 vaccine business. The most followed valuation narrative pegs Pfizer's fair value at about $29.19 per share versus a recent close of $24.94, suggesting the stock is materially discounted once future cash flows are adjusted using a 7.11% discount rate. This narrative assumes robust expansion of Pfizer's late-stage pipeline, especially in oncology and rare diseases, will drive sustained long-term revenue and earnings growth. However, the outlook depends on Pfizer offsetting revenue headwinds and patent expiries, and on regulators not imposing tighter pricing rules that squeeze long-term margins. The stock showed a 1-day return of 0.77% and a 7-day return of 2.85%, but a 90-day decline of 6.94%, while the 1-year total shareholder return stands at 6.14%.

Arbutus Biopharma and Genevant Sciences have filed multiple patent infringement lawsuits against Pfizer and BioNTech over their mRNA-LNP COVID-19 vaccines, extending the legal dispute beyond the existing U.S. litigation into Canada and several European countries under the Unified Patent Court. The lawsuits seek monetary damages and permanent injunctions that could, in a worst-case scenario, affect Pfizer's ability to sell the vaccines in some markets. The dispute centers on lipid nanoparticle technology used in mRNA delivery, adding legal and operational risks to Pfizer's key vaccine franchise. Pfizer's stock last closed at $25.05, with a 10.5% gain over the past year but declines of 19.5% over three years and 22.6% over five years. The legal process is typically lengthy, giving Pfizer time to pursue defenses or settlements, but investors now face another potential source of cash outflows and operational constraints.