On May 17, 2024, Whitefort Capital Management, LP, the second largest shareholder of Arbutus Biopharma Corp. (NASDAQ: ABUS), published an open letter to shareholders proposing strategies to enhance company value. Whitefort, holding approximately 6.8% of Arbutus' outstanding shares, suggested the termination of the company's at-the-market (ATM) program to prevent dilution and preserve the value of its lipid nanoparticle (LNP) patent infringement claims against Moderna and Pfizer/BioNTech. Whitefort commended the interim CEO’s statement on the company's strong liquidity but emphasized a commitment to cease further share issuances.

Whitefort recommended judicious capital allocation for Arbutus’ Hepatitis B (HBV) pipeline, particularly focusing on near-term Phase 2a combination therapy trials for the RNA interference (RNAi) therapeutic AB-729. It urged the company to hire a financial advisor by the end of 2024 to explore strategic alternatives for the HBV portfolio.

The letter highlighted a favorable claim construction order in Arbutus' patent infringement litigation against Moderna and Pfizer/BioNTech, potentially increasing the value of these claims, estimated in billions. Additionally, Whitefort announced its intention to vote against a proposal to increase share authorization under the incentive plan, citing concerns over dilution.

Arbutus Biopharma is headquartered in Vancouver, British Columbia, Canada, and specializes in developing therapies for HBV and other viral infections.