Arbutus Biopharma (ABUS) is a relatively small biopharma company with a market capitalization of just over $400 million. Arbutus is still in the clinical stage. Its business is primarily focused on discovering, developing an commercializing a cure for people with chronic hepatitis B (“HBV”) infection.The company is advancing multiple product candidates that could have the potential to a new cure for HBV. The company has also initiated drug developing efforts for treating COVID-19.
The World Health Organization (“WHO”) previously estimated that 240 million people suffered from chronic HBV.The HBV market was valued at $2.6 billion in 2016. Technavio suggested the HBV market could grow by $524 million from 2020-2024, representing a 4% CAGR over that period. That would put current HBV market at over $3 billion. That said, Arbutus generated Q2 revenue of $2.3 million and an operating loss of $18.6 million. Until the company launches a products, its revenue could remain nascent, while operating losses pile up.
After a major patent win by Arbutus, short sellers have gone all out to keep the stock depressed. They may have overdone it. Short interest now exceeds ABUS’ “effective float.” Read more:
