Bullish Arbutus Biopharma Analyst Breaks Down Pipeline Opportunity

The expected start of combination clinical trials has H.C. Wainwright bullish on shares of Arbutus Biopharma Corp. ABUS.

The Arbutus Analyst: Ed Arce raffirmed a Buy rating on shares of Arbutus Biopharma Corp. with a $10 price target. 

The Arbutus Takeaways: On Tuesday, Arbutus announced it entered into a collaborative agreement with Vaccitech plc. VACC to begin Phase 2a clinical trials for a combination of its RNAi therapeutic AB-729 and Vaccitech’s immunotherapeutic VTP-300 for chronic hepatitis B, Arce said in a note 

This is the third combination study involving AB-729 that Arbutus has initiated in 2021, and it “could elicit synergistic responses in CHB patients,” the analyst said. 

The $10 price target is calculated using a risk-adjusted, sum-of-the-parts, net present value model that incorporates varying probabilities of success on different pipeline candidates and revenue projections through 2037, he said.

AB-729 contributes $6.01 to the price target alone, with a 55% probability of success and peak revenue estimates of $1.4 billion in 2037, according to H.C. Wainwright. 

ABUS Price Action: Shares of Arbutus Biopharma lost 0.68% in Tuesday's session, closing at $2.93. 

Posted In: Ed ArceH.C. WainwrightAnalyst ColorBiotechPenny StocksPrice TargetReiterationSmall CapAnalyst RatingsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.