Arbutus Biopharma Corporation (ABUS)

[Noil1]

Biotech Analysis Central by Terry Chrisomalis: As the move past COVID-19 continues, the vaccines will take time to get out to the millions of people that will take the doses. As far as biotech goes, there's one ticker I'm leaning heavily on and that is Arbutus Biopharma (ABUS). The reason why is because it already released positive results throughout 2020 from a phase 1/2 study showing that its RNAi drug 60 mg AB-729 can indeed reduce HBsAg in patients with Hepatitis B. The next step is to start phase 2 combination studies that can have patients dosed once every eight or 12 weeks. Results from using 90 mg AB-729 once every eight weeks or 12 weeks are expected in the 1st half of 2021.

Based on this data I believe the company is in a good position long term to advance its product and potentially find a big pharma partner. That's because another RNAi company Arrowhead Pharmaceuticals (ARWR), plus their partner Johnson & Johnson (JNJ) have validated the RNAi approach to treating Hepatitis B using their drug JNJ-3989. Therefore, I can see that Arbutus has potential in this space based on RNAi (RNA interference) being a validated approach to treating this virus.

Long-term value is good as well for Arbutus, because it's looking at developing its very own PD-L1 drug and its own capsid inhibitor (AB-836) to add in with AB-729 as a combination therapy for Hepatitis B. Lastly, the biotech has experience in developing antivirals and is attempting a pan corona virus drug that not only looks at the current COVID-19 virus, but any other similar virus that may arise in the future. Arbutus wants to initiate a proof of concept open-label trial with its partner Assembly Biosciences for Hep B. This will include AB-729, Assembly's vebicorvir, plus a nucleoside analogue to treat Hepatitis B patients. Study expected to start first half 2021.

Disclosure: Long ABUS

Source: https://seekingalpha.com/article/4398318-2021-roundtable-general-outlook-biotech-and-healthcare-investing