Arbutus Biopharma (ABUS) Patent Revocation Leads to 18% Stock Crash
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: stocktwits
- Patent Revocation Impact: The European Patent Office revoked Arbutus's EP 2279254 patent on January 15, causing its stock to plummet over 18% on Friday, marking the largest intraday decline since July 2020, indicating market concerns about the company's future legal standing.
- Legal Response Plan: Arbutus plans to seek a review from the Enlarged Board of Appeal, asserting that the ruling will not affect its patent infringement cases against Moderna in the U.S., Canada, and Japan, demonstrating its confidence in ongoing legal battles.
- Market Reaction: Despite the sharp decline in stock price, retail sentiment on Stocktwits shifted from bearish to bullish, with some users viewing the drop as an opportunity to establish new positions, reflecting divergent views on the company's long-term prospects.
- Competitor Dynamics: While Arbutus's stock fell, Moderna's shares rose by 7%, and Merck's fell by 2%, highlighting varying market reactions to competitors that could influence Arbutus's competitive position moving forward.
Analyst Views on ABUS
About ABUS
Arbutus Biopharma Corporation is a clinical-stage biopharmaceutical company focused on infectious disease. The Company is developing imdusiran (AB-729), its proprietary, conjugated GalNAc, subcutaneously delivered RNAi therapeutic, and AB-101, its proprietary oral PD-L1 inhibitor, for the treatment of chronic hepatitis B (cHBV). Its HBV product pipeline includes Imdusiran and AB-101. Its pipeline includes two product candidates that target various steps in the HBV viral lifecycle and consists of various programs: RNAi therapeutic (imdusiran, AB-729) and Oral PD-L1 Inhibitor (AB-101). RNAi therapeutics utilize a natural pathway within cells to silence genes by eliminating the disease-causing proteins that they code for. PD-L1 inhibitors complement its pipeline of agents and could potentially be a part of a combination therapy for the treatment of HBV by reawakening the immune system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
