Arbutus Biopharma Corp (NASDAQ:ABUS)
Shares of Arbutus Biopharma Corp (NASDAQ:ABUS) rallied 20.7% after the biopharmaceutical company announced that its treatment for ATTR amyloidosis and polyneuropathy, Patisiran, met its primary and secondary endpoints in a Phase 3 study. In addition to meeting endpoints, the study also validated the company’s LNP delivery technology.
Wednesday’s rally did not come as a surprise as Arbutus Biopharma Corp (NASDAQ:ABUS) has been on a fine run since the start of the year. The stock is already up by more than 40% as it continues to outperform the overall industry.
The stock is currently trading at the upper end of a tight trading range as it closes on its 52-week high of $7.85 a share.
Patisiran is Arbutus candidate drug under development as part of a licensing deal with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). Buoyed by the top line Phase 3 trial results, plans have been made to file a New Drug Application (NDA) for the drug before the end of the year. The company also intends to file a Marketing Authorization Application early next year.
“We are very pleased with the successful outcome of Alnylam’s APOLLO Phase 3 study of patisiran. This is an important achievement for patients and for the field of RNAi therapeutics. […] Our LNP technology represents the most proven delivery technology for the systemic delivery of nucleic acid-based therapeutics,” said CEO Mark Murray.
Arbutus Biopharma Corp (NASDAQ:ABUS) is entitled to single-digit royalties on the sales of Patisiran upon regulatory approval. In addition to Patisiran, the biopharmaceutical company is also developing a number of treatments for patients suffering from chronic HBV infection. The company is currently developing products that will be combined with approved agents.
Arbutus Biopharma Corp (NASDAQ:ABUS) research has also added a number of new agents that are poised to generate great value as evidenced by AB-506, next-generation capsid inhibitor and AB-452 an HBV RNA destabilizer. Developing a robust pipeline of candidate drugs is part of the company’s push, geared towards becoming a key player in the treatment of hepatitis B.
According to Hepatitis B Foundation, there are more than 257 million people worldwide infected with the Hepatitis B virus. The U.S alone presents a $3.5 billion market opportunity as there are more than 2 million infected with the virus.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.