Arbutus Biopharma Shares Rise Friday on Buyback Plan Announcement

Arbutus Biopharma Corp. shares traded higher on Friday after the company announced plans to repurchase up to $230 million of its common stock through a modified Dutch auction tender offer.

The clinical-stage biopharmaceutical company plans to offer shareholders cash between $5 and $5.75 per share. Arbutus expects to fund the buyback with cash on hand.

Tender Offer Expected to Launch Next Week

The company expects the tender offer to begin around August 24 and expire around September 29, unless extended or terminated.

In a modified Dutch auction, shareholders can indicate the number of shares they want to sell and the price within a specified range. The company will then determine the lowest price that allows it to purchase shares under the offer.

Moderna Settlement Funds Support Shareholder Returns

Chief Executive Officer Lindsay Androski linked the planned buyback to the company's March 2026 settlement with Moderna Inc. and the initial payment received in July.

Arbutus received approximately $178 million as its share of the non-contingent settlement payment, including reimbursement of litigation expenses.

Meanwhile, Arbutus and its exclusive licensee Genevant Sciences continue patent litigation against Pfizer Inc. and BioNTech SE involving lipid nanoparticle technology used in COVID-19 vaccines.

Genevant is a subsidiary of Roivant Sciences Ltd.

Arbutus is also developing imdusiran and oral PD-L1 inhibitor AB-101 for the treatment of chronic hepatitis B virus infection.

Arbutus Biopharma Stock Performance

ABUS stock performance: As of Friday's publication time, Arbutus Biopharma stock was up 6.92% at $5.09.