Here's Why Arbutus Biopharma Fell Today
Shares of Arbutus Biopharma (NASDAQ: ABUS) are down 15% at 2:14 p.m. EDT, following the release of the biotech's first-quarter results, although there didn't appear to be anything in the press release to justify the sell-off.
Arbutus is still a clinical-stage biotech, so revenue is minimal and comes from collaborations and licenses. The company also has some noncash royalty revenue that it books each quarter. On the bottom line, the biotech posted a net loss of $17.1 million, which is to be expected with no products on the market.
The more important issue is how much cash Arbutus is burning relative to what it has in the bank. Fortunately, with the help of a capital raise in July, the company was able to extend its cash runway into mid-2022, compared with prior guidance of mid-2021.
Source Fool.com
