Whitefort Capital Management is urging Warminster-based Arbutus Biopharma to look at all options for its lead product portfolio instead of just diluting investor holdings by selling more stock to fund the next stage of clinical testing, writes John George for the Philadelphia Business Journal.
The New York investment firm, which is a major shareholder in Arbutus, is specifically asking that the Bucks County biopharmaceutical company commit to not performing any “dilutive” equity issuances or at-the-market stock sales in 2025.
Whitefort sent a letter with the request earlier this week. Arbutus filed a notice to potentially sell up to $300 million in stock about a month ago, saying the proceeds could be used for clinical trial expenses.
Arbutus is developing a cure for hepatitis B. Its lead drug candidate, imdusiran, is currently in mid-stage testing as part of a combination therapy.
“To maximize the probability of success of its [hepatitis B] program, the company should partner with a larger biopharmaceutical company with an existing hepatitis franchise that has the clinical expertise, commercial infrastructure, and capital necessary to commercialize a complex combination therapy,” stated Whitefort in the letter.
Read more about Arbutus and Whitefort Capital Management in the Philadelphia Business Journal.
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