Arbutus (ABUS) Sets Focus on Hepatitis B Candidates, Stocks Up – September 12, 2023

Yangmei Biopharmaceutical (a bus – Free Report) announced that it will focus its resources on developing hepatitis B virus (HBV) therapies while halting development of its oral RNA destabilizer, AB-161, and coronavirus combination treatment programs. This strategic shift is expected to extend the company’s cash runway into the third quarter of 2025. The company’s stock price rose 4.8% on September 11 after the news broke.

ABUS is currently developing two drug candidates for the treatment of chronic HBV – imdusiran (AB-729) and AB-101. Imdusiran is an RNA interference (RNAi) designed to target and reduce HBV viral proteins and antigens. The drug candidate is currently being evaluated in multiple early- to mid-stage combination studies for the treatment of chronic hepatitis B virus infection.

The company recently initiated a Phase Ia/Ib study of AB-101, an oral PD-L1 inhibitor. Preclinical data for this drug candidate indicate that it is able to reactivate exhausted hepatitis B-specific T cells in patients with chronic hepatitis B, potentially restoring immune responses against the virus. Arbutus expects to report preliminary data from the early-stage study in the first half of 2024.

Arbutus shares have fallen 5.6% so far this year, compared with the industry’s decline of 12.8%.

Additionally, the company will cease development of all coronavirus and oral RNA destabilizer programs. The company is discontinuing development of its oral RNA destabilizer AB-161 due to preclinical toxicology findings not related to peripheral neuropathy. AB-161 is being evaluated in an early-stage study in patients with HBV infection. We note that no safety concerns were reported in healthy subjects who received doses of AB-161 during earlier studies.

ABUS also halted the discovery and development of new molecular therapies to treat the coronavirus. The program includes AB-343, a coronavirus drug candidate that inhibits SARS-CoV-2 Mpro and is targeted to treat COVID-19 and potential coronavirus outbreaks. This decision was driven by adverse pharmacokinetic profiles observed during AB-343’s new drug launch studies.

The termination of the study will provide the company with the financial stability needed to pursue its core hepatitis B-focused programs. The company had $163.5 million in cash, cash equivalents and marketable securities investments as of June 30, 2023, compared to $178.5 million as of March 31, 2023.

Hepatitis B is a major global health problem, affecting millions of people worldwide and leading to serious complications, including cirrhosis and liver cancer. Despite the availability of vaccines and treatment options, chronic hepatitis B virus infection remains an urgent unmet medical need, causing approximately 820,000 deaths each year.

Zacks Rank and Stocks to Consider

Arbutus currently carries a Zacks Rank #3 (Hold).

Some stocks that rank better in their industry are Anika Therapeutics (Alnwick – free report), Anovis Bio (ANVS – free report) and Consip Therapeutics (cut – Free Report), each currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past 90 days, the Zacks Consensus Estimate for Anika Therapeutics has narrowed from a loss of $1.41 per share to a loss of $1.32 in 2023. Bottom-line estimates have narrowed from a loss of 79 cents per share to a loss of 64 cents in 2023. 2024 in the same time frame. The company’s shares have fallen 41.5% so far this year.

ANIK’s earnings have topped estimates in one of the last four quarters and missed estimates in the remaining three, with an average negative surprise surprise of 32.12%.

Over the past 90 days, the Zacks Consensus Estimate for Annovis Bio has narrowed from a loss of $4.89 per share to a loss of $4.38 in 2023. Bottom-line estimates have narrowed from a loss of $3.18 per share to a loss of $2.77 in 2024. Same time frame. The company’s shares have fallen 14.8% so far this year.

ANVS’ earnings have exceeded estimates in three of the past four quarters but missed estimates in one quarter, with an average surprise rate of 13.40%.

Over the past 90 days, the Zacks Consensus Estimate for Corcept’s earnings has increased from 62 cents per share to 78 cents in 2023. During the same time frame, bottom-line expectations also rose from 61 cents to 83 cents in 2024. The company’s shares have risen 62.7% so far this year.

CORT’s earnings have topped estimates in two of the last four quarters and missed estimates in the other two, with an average surprise margin of 6.99%.

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