Arbutus Biopharma Corp. (NASDAQ:ABUS) stock traded higher Friday after the company announced plans to repurchase up to $230 million of its common stock through a modified Dutch auction tender offer.
The clinical-stage biotech plans to offer shareholders between $5 and $5.75 per share in cash. Arbutus expects to fund the buyback with cash on hand.
Tender Offer Expected To Start Next Week
The company expects the tender offer to begin around Aug. 24 and expire around Sept. 29, unless extended or terminated.
Under a modified Dutch auction, shareholders can indicate how many shares they want to sell and at what price within the specified range. The company will then determine the lowest price that allows it to purchase shares under the offer.
Moderna Settlement Funds Shareholder Return
CEO Lindsay Androski linked the planned buyback to the company’s March 2026 settlement with Moderna Inc. (NASDAQ:MRNA) and the initial payment received in July.
Arbutus received approximately $178 million as its share of the noncontingent settlement payment, including reimbursement of litigation costs.
Meanwhile, Arbutus and exclusive licensee Genevant Sciences continue to pursue patent litigation against Pfizer Inc. (NYSE:PFE) and BioNTech SE (NASDAQ:BNTX) over lipid nanoparticle technology used in COVID-19 vaccines.
Genevant is a subsidiary of Roivant Sciences Ltd. (NASDAQ:ROIV).
Arbutus is also developing imdusiran and oral PD-L1 inhibitor AB-101 for chronic hepatitis B virus infection.
Arbutus Biopharma Price Action
ABUS Price Action: Arbutus Biopharma shares were up 6.92% at $5.09 at the time of publication on Friday, according to Benzinga Pro data.
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