JMP Securities analyst Roy Buchanan reiterated a Buy rating on Arbutus Biopharma (ABUS – Research Report) today and set a price target of $5.00.
Roy Buchanan has given his Buy rating due to a combination of factors, primarily focusing on Arbutus Biopharma’s strategic legal actions against Moderna. The company, along with its partner Genevant, has expanded its legal challenges globally concerning their lipid nanoparticle (LNP) patents. These actions are significant as they target Moderna’s key products, including Spikevax and the mRNA RSV vaccine, which have generated substantial revenues in international markets.
Arbutus and Genevant’s legal proceedings are expected to progress in parallel with ongoing U.S. cases, potentially leading to favorable outcomes. The anticipated hearings and decisions in various jurisdictions, such as Canada, Japan, and the Unified Patent Court, could result in significant financial compensation or royalties for Arbutus. This strategic positioning in the legal landscape, coupled with the potential financial benefits, underpins Buchanan’s positive outlook and Buy rating for Arbutus Biopharma.