Arbutus Biopharma Regains China Rights to Hepatitis B Drug Imdusiran in Strategic Shift

Arbutus Biopharma has announced a significant strategic move, regaining the China rights to its potential functional cure for hepatitis B, imdusiran. This development comes as part of a broader restructuring effort by the company to streamline its operations and focus on advancing its pipeline.

Reacquisition of China Rights

Arbutus Biopharma has reached a mutual agreement with China-based Qilu Pharmaceutical to reacquire the regional rights to imdusiran, previously known as AB-729. This decision reverses a 2021 deal in which Qilu secured the rights for a $40 million upfront fee, with the potential for up to $245 million in additional milestone payments.

Lindsay Androski, the recently appointed CEO of Arbutus, explained that the move aligns with the company's "renewed focus on advancing our pipeline efficiently" and cited Qilu's own "pipeline reprioritization efforts" as factors in the decision. The financial details of the rights reacquisition have not been disclosed.

Imdusiran's Promising Results

Imdusiran, an RNA interference therapeutic, has shown promising results in ongoing clinical trials. Arbutus has been evaluating the drug in two phase 2a studies as a potential functional cure for chronic hepatitis B virus infection. The studies have explored imdusiran in combination with standard-of-care pegylated interferon alfa-2α and Barinthus Biotherapeutics' T-cell stimulating immunotherapeutic VTP-300.

Androski highlighted the drug's progress, stating, "We are thrilled to once again hold global rights for imdusiran, which to date has achieved functional cure in eight patients in combination therapy in two phase 2a trials."

Strategic Restructuring at Arbutus

The reacquisition of imdusiran's China rights is part of a larger strategic shift at Arbutus. In March 2025, the company announced a significant restructuring, including:

• Laying off 57% of its employees
• Ending in-house R&D activities
• Vacating its corporate headquarters in Warminster, Pennsylvania

These moves reflect Arbutus' intention to refocus its efforts and resources on advancing imdusiran's development. The company has also brought in subject matter experts to assist in evaluating strategies to accelerate the drug's development and potential approval.