Arbutus Biopharma (ABUS) 10-Q 3 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Entity Registrant Name	Arbutus Biopharma Corp
Entity Central Index Key	1,447,028
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,026,995
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 24,212	$ 23,413
Short-term investments (note 2)	78,797	107,146
Accounts receivable	1,042	273
Accrued revenue	128	128
Investment tax credits receivable	160	293
Prepaid expenses and other assets	1,583	1,311
Total current assets	105,922	132,564
Restricted investment (note 2)	12,601	12,601
Property and equipment	24,284	17,683
Less accumulated depreciation	(11,541)	(10,738)
Property and equipment, net of accumulated depreciation	12,743	6,945
Intangible assets (note 3)	99,445	99,445
Goodwill (note 3)	24,364	24,364
Total assets	255,075	275,919
Current liabilities:
Accounts payable and accrued liabilities (note 5)	8,274	9,910
Deferred revenue (note 4)	2,624	15
Liability-classified options (note 2)	983	553
Warrants	0	107
Total current liabilities	11,881	10,585
Deferred revenue, net of current portion (note 4)	4,130	0
Loan payable	12,001	12,001
Contingent consideration (notes 2 and 6)	10,014	9,065
Deferred tax liability	41,263	41,263
Total liabilities	79,289	72,914
Stockholders’ equity:
Issued and outstanding: 55,026,983 (December 31, 2016 - 54,841,494)	873,841	867,393
Additional paid-in capital	39,758	36,543
Deficit	(688,031)	(651,149)
Accumulated other comprehensive loss	(49,782)	(49,782)
Total stockholders' equity	175,786	203,005
Total liabilities and stockholders' equity	$ 255,075	$ 275,919

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common shares, no par value (in USD per share)	$ 0	$ 0
Common shares, shares issued (in shares)	55,026,983	54,841,494
Common shares, shares outstanding (in shares)	55,026,983	54,841,494

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue
Collaborations and contracts	$ 318	$ 32	$ 336	$ 139
Licensing fees, milestone and royalty payments	721	277	938	773
Total revenue	1,039	309	1,274	912
Expenses
Research, development, collaborations and contracts	15,445	15,215	29,317	28,359
General and administrative	4,599	23,766	8,927	30,985
Depreciation of property and equipment	480	252	814	469
Impairment of intangible assets (note 3)	0	156,324	0	156,324
Total expenses	20,524	195,557	39,058	216,137
Loss from operations	(19,485)	(195,248)	(37,784)	(215,225)
Other income (losses)
Interest income	390	435	758	679
Interest expense	(68)	0	(110)	0
Foreign exchange gains	798	33	1,225	2,975
Gain on disposition of financial instrument	0	0	0	1,000
Decrease (increase) in fair value of warrant liability (note 2)	0	168	(22)	329
Decrease (increase) in fair value of contingent consideration (note 7)	110	(252)	(949)	(496)
Total other income (losses)	1,230	384	902	4,487
Loss before income taxes	(18,255)	(194,864)	(36,882)	(210,738)
Income tax benefit	0	64,864	0	64,864
Net and comprehensive loss	$ (18,255)	$ (130,000)	$ (36,882)	$ (145,874)
Loss per common share
Loss per common share basic and diluted (in USD per share)	$ (0.33)	$ (2.47)	$ (0.68)	$ (2.80)
Weighted average number of common shares
Weighted average number of common shares basic and diluted (in shares)	54,647,944	52,716,059	54,478,221	52,052,165

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Deficit	Accumulated other comprehensive loss
Beginning balance (in shares) at Dec. 31, 2016		54,841,494
Beginning balance at Dec. 31, 2016	$ 203,005	$ 867,393	$ 36,543	$ (651,149)	$ (49,782)
Stock-based compensation	9,492	$ 5,938	3,554
Certain fair value adjustments to liability stock option awards	(315)		(315)
Issuance of common shares pursuant to exercise of options (in shares)		6,489
Issuance of common shares pursuant to exercise of options	5	$ 29	(24)
Issuance of common shares pursuant to exercise of warrants (in shares)		179,000
Issuance of common shares pursuant to exercise of warrants	481	$ 481
Net loss	(36,882)			(36,882)
Ending balance (in shares) at Jun. 30, 2017		55,026,983
Ending balance at Jun. 30, 2017	$ 175,786	$ 873,841	$ 39,758	$ (688,031)	$ (49,782)

Consolidated Statements of Cash

Consolidated Statements of Cash Flow - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES
Net loss for the period	$ (18,255)	$ (130,000)	$ (36,882)	$ (145,874)
Deferred income taxes	0	(64,864)	0	(64,864)
Items not involving cash:
Depreciation of property and equipment	480	252	814	469
Unrealized foreign exchange (gains) losses	(824)	51	(1,250)	(2,956)
Change in fair value of warrant liability	0	(168)	22	(329)
Change in fair value of contingent consideration	(110)	252	949	496
Impairment of intangible assets (note 3)	0	156,324	0	156,324
Net change in non-cash operating items:
Accounts receivable	6,691	(116)	(914)	552
Investment tax credits receivable	294	98	279	98
Prepaid expenses and other assets	(9)	(573)	(273)	(847)
Accounts payable and accrued liabilities	2,205	42	(1,708)	(1,074)
Deferred revenue	(653)	(213)	6,739	(370)
Net cash used in operating activities	(5,078)	(16,804)	(22,617)	(28,351)
INVESTING ACTIVITIES
Disposition (acquisition) of short and long-term investments, net	1,731	(84,439)	28,349	(97,745)
Acquisition of property and equipment	(3,121)	(954)	(6,539)	(1,230)
Net cash provided by (used) in investing activities	(1,390)	(85,393)	21,810	(98,975)
FINANCING ACTIVITIES
Proceeds from issuance of common shares, net of issuance costs	0	0	0	0
Issuance of common shares pursuant to exercise of options	4	1	5	116
Issuance of common shares pursuant to exercise of warrants	0	445	353	445
Net cash provided by financing activities	4	446	358	561
Effect of foreign exchange rate changes on cash and cash equivalents	825	(51)	1,248	2,956
(Decrease) Increase in cash and cash equivalents	(5,639)	(101,802)	799	(123,809)
Cash and cash equivalents, beginning of period	29,851	144,772	23,413	166,779
Cash and cash equivalents, end of period	24,212	42,970	24,212	42,970
Non-cash transactions:
Investment tax credit received	108	0	108	0
Acquired property and equipment in trade payables	72	0	72	0
Research, development, collaborations and contracts expenses
Items not involving cash:
Stock-based compensation	3,055	2,519	5,678	5,466
General and administrative expenses
Items not involving cash:
Stock-based compensation	$ 2,048	$ 19,592	$ 3,929	$ 24,558

Nature of Business and Future O

Nature of Business and Future Operations	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of business and future operations	Nature of business and future operations Arbutus Biopharma Corporation (the “Company” or “Arbutus”) is a biopharmaceutical business dedicated to discovering, developing, and commercializing a cure for patients suffering from chronic hepatitis B infection, a disease of the liver caused by the hepatitis B virus (“HBV”). The Company's portfolio of assets includes a broad pipeline of drug candidates to develop a cure for HBV and leverages the Company’s expertise in Lipid Nanoparticle ("LNP") technology. The success of the Company is dependent on obtaining the necessary regulatory approvals to bring its products to market and achieve profitable operations. The continuation of the research and development activities and the commercialization of its products are dependent on the Company’s ability to successfully complete these activities and to obtain adequate financing through a combination of financing activities and operations. It is not possible to predict either the outcome of future research and development programs or the Company’s ability to continue to fund these programs in the future.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Significant accounting policies	Significant accounting policies Basis of presentation These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”) for interim financial statements and accordingly, do not include all disclosures required for annual financial statements. These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016 and included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments and reclassifications necessary to present fairly the financial position, results of operations and cash flows at June 30, 2017 and for all periods presented. The results of operations for the three and six months ended June 30, 2017 and June 30, 2016 are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2016 , except as described below. Principles of Consolidation These unaudited condensed consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries, Arbutus Biopharma Inc. ("Arbutus Inc.") and Protiva Biotherapeutics Inc. ("Protiva"). All intercompany transactions and balances have been eliminated on consolidation. Income or loss per share Income or loss per share is calculated based on the weighted average number of common shares outstanding. Diluted loss per share does not differ from basic loss per share since the effect of the Company’s stock options, liability-classified stock option awards, and warrants are anti-dilutive. During the six months ended June 30, 2017 , potential common shares of 5,848,138 ( June 30, 2016 – 5,488,162 ) were excluded from the calculation of loss per common share because their inclusion would be anti-dilutive, of which 226,588 ( June 30, 2016 - 1,258,824 ) relates to shares issued subject to repurchase provisions as part of consideration paid for the acquisition of Arbutus Inc. Fair value of financial instruments The Company measures certain financial instruments and other items at fair value. To determine the fair value, the Company uses the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 inputs are quoted market prices for identical instruments available in active markets. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets. • Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assumptions about market assumptions that would be used to price the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis, in thousands, and indicates the fair value hierarchy of the valuation techniques used to determine such fair value: Level 1 Level 2 Level 3 June 30, 2017 Assets Cash and cash equivalents $ 24,212 — — $ 24,212 Short-term investments 78,797 — — 78,797 Restricted investment 12,601 — — 12,601 Total $ 115,610 — — $ 115,610 Liabilities Liability-classified options — — $ 983 $ 983 Contingent consideration — — 10,014 10,014 Total — — $ 10,997 $ 10,997 Level 1 Level 2 Level 3 December 31, 2016 Assets Cash and cash equivalents $ 23,413 — — $ 23,413 Short-term investments 107,146 — — 107,146 Restricted investment 12,601 — — 12,601 Total $ 143,160 — — $ 143,160 Liabilities Warrants — — $ 107 $ 107 Liability-classified options 553 553 Contingent consideration — — 9,065 9,065 Total — — $ 9,725 $ 9,725 The following table presents the changes in fair value of the Company’s warrants: Liability at beginning of the period Fair value of warrants exercised in the period Increase (decrease) in fair value of warrants Liability at end of the period Six months ended June 30, 2016 $ 883 $ (246 ) $ (329 ) $ 308 Six months ended June 30, 2017 $ 107 $ (129 ) $ 22 $ — During the six months ended June 30, 2017 , there were 179,000 warrants exercised for $353,000 in cash ( June 30, 2016 - 170,500 ) and no warrants were exercised using the cashless exercise provision ( June 30, 2016 - nil ). On March 1, 2017, 22,000 of the Company's warrants expired, resulting in a nil liability balance for the period-ended June 30, 2017 . The change in fair value of warrant liability for the six months ended June 30, 2017 is recorded in the statement of operations and comprehensive loss. The following table presents the changes in fair value of the Company’s liability-classified stock option awards: Liability at beginning of the period Increase (decrease) in fair value of liability Liability at end of the period Six months ended June 30, 2016 $ 1,909 $ (597 ) $ 1,312 Six months ended June 30, 2017 $ 553 $ 430 $ 983 The following table presents the changes in fair value of the Company’s contingent consideration: Liability at beginning of the period Increase in fair value of Contingent Consideration Liability at end of the period Six months ended June 30, 2016 $ 7,497 $ 496 $ 7,993 Six months ended June 30, 2017 $ 9,065 $ 949 $ 10,014 Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606). The standard, as subsequently amended, is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS by creating a new Topic 606, Revenue from Contracts with Customers. This guidance supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The core principle of the accounting standard is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services. The amendments should be applied by either (1) retrospectively to each prior reporting period presented; or (2) retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application ("modified retrospective method"). The new guidance would be effective for fiscal years beginning after December 15, 2017, which for the Company means January 1, 2018. The Company anticipates applying the modified retrospective method for its implementation, and continues to evaluate the expected impact that the standard could have on its consolidated financial statements and related disclosures, which the Company believes most materially relates to its licensing and collaboration contracts that are described in note 4. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Recognition and Measurement of Financial Assets and Financial Liabilities. The update supersedes Topic 840, Leases and requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. Topic 842 retains a distinction between finance leases and operating leases, with cash payments from operating leases classified within operating activities in the statement of cash flows. The amendments in this update are effective for fiscal years beginning after December 15, 2018 for public business entities, which for the Company means January 1, 2019. The Company does not plan to early adopt this update. The extent of the impact of this adoption has not yet been determined. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. Under this update, the classification of cash receipts and payments that have aspects of more than one class of cash flows should be determined first by applying specific guidance in GAAP. In the absence of specific guidance, an entity should determine each separately identifiable source or use within the cash receipts and cash payments on the basis of the nature of the underlying cash flows. An entity should then classify each separately identifiable source or use within the cash receipts and payments on the basis of their nature in financing, investing, or operating activities. In situations in which cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use, the appropriate classification should depend on the activity that is likely to be the predominant source or use of cash flows for the item. The amendments in this update are effective for public business entities for fiscal years beginning after December 31, 2017, which for the Company means January 1, 2018, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the extent of the impact of this adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Statement of Cash Flows: Restricted Cash. The update requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017, which for the Company means January 1, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that included that interim period. The amendments in this update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the extent of the impact of this adoption. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets required and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments in this update are effective for public business entities should be adopted for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, which for the Company means January 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the extent of the impact of this adoption. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. An entity should account for effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments in this Update are effective for all entities for annual periods and interim periods within those annual periods, beginning after December 15, 2017, which for the Company means January 1, 2018. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Company has early adopted the amendments in this Update effective for its interim financial statements for the period ended June 30, 2017. The impact of this adoption did not have an effect in the Company's statement of operations and comprehensive loss for the period ended June 30, 2017 as no award modifications occurred.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets and goodwill	Intangible assets and goodwill All in-process research and development (IPR&D) acquired is currently classified as indefinite-lived and is not currently being amortized. IPR&D becomes definite-lived upon the completion or abandonment of the associated research and development efforts, and will be amortized from that time over an estimated useful life based on respective patent terms. The Company evaluates the recoverable amount of intangible assets on an annual basis and performs an annual evaluation of goodwill as of December 31 each year, unless there is an event or change in the business that could indicate impairment, in which case earlier testing is performed. The following table summarizes the carrying values of the intangible assets as at June 30, 2017 : June 30, 2017 December 31, 2016 IPR&D – Immune Modulators $ 40,798 $ 40,798 IPR&D – Antigen Inhibitors 14,811 14,811 IPR&D – cccDNA Sterilizers 43,836 43,836 Total Intangible Assets $ 99,445 $ 99,445 Impairment evaluation of goodwill At June 30, 2017 , the Company did not identify any new indicators of impairment. No impairment charge on intangible assets or goodwill was recorded for the period ended June 30, 2017 (three and six months ended June 30, 2016 - $156,324,000 ).

Collaborations, Contracts and L

Collaborations, Contracts and Licensing Agreements	6 Months Ended
	Jun. 30, 2017
Deferred Revenue Disclosure [Abstract]
Collaborations, contracts and licensing agreements	Collaborations, contracts and licensing agreements The following tables set forth revenue recognized under collaborations, contracts and licensing agreements, in thousands: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Collaborations and contracts Alexion (a) $ 318 $ — 336 — Dicerna (b) — 32 — 139 Total research and development collaborations and contracts 318 32 336 139 Licensing fees, milestone and royalty payments Alexion licensing fee (a) 652 — 761 — Dicerna licensing fee (b) — 214 — 427 Other milestone and royalty payments (c) 69 63 177 346 Total licensing fees, milestone and royalty payments 721 277 938 773 Total revenue $ 1,039 $ 309 $ 1,274 $ 912 The following table sets forth deferred collaborations and contracts revenue: June 30, 2017 December 31, 2016 Alexion current portion (a) $ 2,624 $ — DoD — 15 Deferred revenue, current portion 2,624 15 Alexion long-term portion (a) 4,130 — Total deferred revenue $ 6,754 $ 15 (a) License Agreement with Alexion Pharmaceuticals, Inc. ("Alexion") On March 16, 2017, the Company signed a license agreement with Alexion that entitles Alexion to research, develop, manufacture, and commercialize products with the Company's lipid nanoparticle ("LNP") technology in their single orphan disease target. In consideration for the rights granted under the agreement, the Company received a $7,500,000 non-refundable upfront cash payment. The Company is also entitled to receive payments from Alexion for services provided, as well as further subsequent payments up to $75,000,000 for the achievement of development, regulatory and commercial milestones, as well as single digit royalties. Further, under the agreement, a joint steering committee has been established to provide guidance and direction on the progression of the collaboration. The Company determined the deliverables under the agreement included the rights granted, participation in the joint steering committee, and other services provided, as directed under the joint steering committee. The license and participation in the joint steering committee have been determined by the Company to not have standalone value due to the uniqueness of the subject matter under the agreement. Therefore, these deliverables are treated as one unit of accounting and recognized as revenue over the performance period. The Company has determined that other services to be provided have standalone value. The relative fair values are estimated upon the execution of each activity, with actual expenditures charged at rates comparable to market with embedded margins on each service activity. The Company believes the development and regulatory milestones are substantive, due to the existence of substantive uncertainty upon the execution of the arrangement, and that the achievement of the development and regulatory events are based, in part, on the Company’s performance and the occurrence of a specific outcome resulting from performance. The Company has not received any milestone payments to date. In July 2017, the Company received notice of termination from Alexion for the Company's LNP license agreement - refer to note 8 for further details related to the subsequent event. (b) License and Development and Supply Agreement with Dicerna Pharmaceuticals, Inc. (“Dicerna”) On November 16, 2014, the Company signed a License Agreement and a Development and Supply Agreement (together, the “Agreements”) with Dicerna to develop, manufacture, and commercialize products directed to the treatment of Primary Hyperoxaluria 1 (“PH1”). In consideration for the rights granted under the Agreements, Dicerna paid the Company an upfront cash payment of $2,500,000 . The Company is also entitled to receive payments from Dicerna on manufacturing and services provided, as well as further payments with the achievement of development and regulatory milestones of up to $22,000,000 , in aggregate, and potential commercial royalties. Further, under the Agreements, a joint development committee has been established to provide guidance and direction on the progression of the collaboration. The Company determined the deliverables under the Agreements included the rights granted, participation in the joint development committee, materials manufactured and other services provided, as directed under the joint development committee. The license and participation in the joint development committee have been determined by the Company to not have standalone value due to the uniqueness of the subject matter under the Agreements. Therefore, these deliverables are treated as one unit of accounting and recognized as revenue over the performance period. In September 2016, Dicerna announced the discontinuation of their DCR-PH1 program using the Company's technology. As such, the Company revised the estimated completion date of performance period from March 2017 to September 30, 2016, at which time the Company had no further remaining performance obligations. This resulted in the recognition of $1,066,000 in Dicerna license fee revenue for year ended December 31, 2016 and no revenue thereafter. (c) Agreements with Spectrum Pharmaceuticals, Inc. (“Spectrum”) On May 6, 2006, the Company signed a number of agreements with Talon Therapeutics, Inc. (“Talon”, formerly Hana Biosciences, Inc.) including the grant of worldwide licenses (the “Talon License Agreement”) for three of the Company’s chemotherapy products, Marqibo®, Alocrest ™ (Optisomal Vinorelbine) and Brakiva ™ (Optisomal Topotecan). On August 9, 2012, the Company announced that Talon had received accelerated approval for Marqibo from the FDA for the treatment of adult patients with Philadelphia chromosome negative acute lymphoblastic leukemia in second or greater relapse or whose disease has progressed following two or more anti-leukemia therapies. Marqibo is a liposomal formulation of the chemotherapy drug vincristine. In the year ended December 31, 2012, the Company received a milestone of $1,000,000 based on the FDA's approval of Marqibo and will receive royalty payments based on Marqibo's commercial sales. There are no further milestones related to Marqibo but the Company is eligible to receive total milestone payments of up to $18,000,000 on Alocrest and Brakiva. Talon was acquired by Spectrum in July 2013. The acquisition does not affect the terms of the license between Talon and the Company. On September 3, 2013, Spectrum announced that they had shipped the first commercial orders of Marqibo. For the three and six months ended June 30, 2017 , the Company recorded $65,000 and $123,000 in Marqibo royalty revenue (three and six months ended June 30, 2016 - $60,000 and $91,000 respectively). For the six months ended June 30, 2017 , the Company accrued 2.5% in royalties due to TPC in respect of the Marqibo royalty earned by the Company – see note 7, contingencies and commitments.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities Accounts payable and accrued liabilities are comprised of the following, in thousands: June 30, 2017 December 31, 2016 Trade accounts payable $ 3,368 $ 3,215 Research and development accruals 3,215 3,131 Professional fee accruals 305 498 Deferred lease inducements 825 350 Payroll accruals 214 2,178 Other accrued liabilities 347 538 $ 8,274 $ 9,910

Contingencies and Commitments

Contingencies and Commitments	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies and commitments	Contingencies and commitments Product development partnership with the Canadian Government The Company entered into a Technology Partnerships Canada ("TPC") agreement with the Canadian Federal Government on November 12, 1999. Under this agreement, TPC agreed to fund 27% of the costs incurred by the Company, prior to March 31, 2004, in the development of certain oligonucleotide product candidates up to a maximum contribution from TPC of $7,179,000 ( C$9,323,000 ). As at June 30, 2017 , a cumulative contribution of $2,853,000 ( C$3,702,000 ) has been received and the Company does not expect any further funding under this agreement. In return for the funding provided by TPC, the Company agreed to pay royalties on the share of future licensing and product revenue, if any, that is received by the Company on certain non-siRNA oligonucleotide product candidates covered by the funding under the agreement. These royalties are payable until a certain cumulative payment amount is achieved or until a pre-specified date. In addition, until a cumulative amount equal to the funding actually received under the agreement has been paid to TPC, the Company agreed to pay 2.5% royalties on any royalties the Company receives for Marqibo. For the three and six months ended June 30, 2017 , the Company earned royalties on Marqibo sales in the amount of $65,000 and $123,000 respectively (three and six months ended June 30, 2016 – $60,000 and $91,000 respectively) (see note 4(c)), resulting in $3,000 being recorded by the Company as royalty payable to TPC ( June 30, 2016 - $2,000 ). The cumulative amount paid or accrued up to June 30, 2017 was $20,000 , therefore the remaining contingent amount due to TPC is $2,833,000 ( C$3,676,000 ). Arbitration with the University of British Columbia (“UBC”) Certain early work on lipid nanoparticle delivery systems and related inventions was undertaken at the Company and assigned to the University of British Columbia (UBC). These inventions are licensed to the Company by UBC under a license agreement, initially entered in 1998 as amended in 2001, 2006 and 2007. The Company has granted sublicenses under the UBC license to Alnylam. Alnylam has in turn sublicensed back to the Company under the licensed UBC patents for discovery, development and commercialization of siRNA products. On November 10, 2014, UBC filed a notice of arbitration against the Company and on January 16, 2015, filed a Statement of Claim, which alleges entitlement to $3,500,000 in allegedly unpaid royalties based on publicly available information, and an unspecified amount based on non-public information. UBC also seeks interest and costs, including legal fees. The Company filed its Statement of Defense to UBC's Statement of Claims, as well as filed a Counterclaim involving a patent application that Arbutus alleges UBC wrongly licensed to a third party rather than to Arbutus. The Company continues to dispute UBC’s allegations, and seeks any license payments for said application, and an exclusive worldwide license to said application. However, the Company notes that arbitration is subject to inherent uncertainty and an arbitrator could rule against the Company. The Company has not recorded an estimate of the possible loss associated with this arbitration, due to the uncertainties related to both the likelihood and amount of any possible loss or range of loss. The proceedings have been bifurcated into three phases, with a first hearing that took place in June 2017. Arbitration and related matters are costly and may divert the attention of the Company’s management and other resources that would otherwise be engaged in other activities. Costs related to the arbitration are recorded by the Company as incurred. Contingent consideration from Arbutus Inc. acquisition of Enantigen and License Agreements between Enantigen and the Baruch S. Blumberg Institute (“Blumberg”) and Drexel University (“Drexel”) In October 2014, Arbutus Inc. acquired all of the outstanding shares of Enantigen pursuant to a stock purchase agreement. Through this transaction, Arbutus Inc. acquired a HBV surface antigen secretion inhibitor program and a capsid assembly inhibitor program, each of which are now assets of the Company, following the Company’s merger with Arbutus Inc. Under the stock purchase agreement, Arbutus Inc. agreed to pay up to a total of $21,000,000 to Enantigen’s selling stockholders upon the achievement of certain triggering events related to Enantigen’s two programs in pre-clinical development related to HBV therapies. The first triggering event is the enrollment of the first patient in a Phase 1b clinical trial in HBV patients, which the Company believes is likely to occur in the next twelve-month period. The regulatory, development and sales milestone payments had an initial estimated fair value of approximately $6,727,000 as at the date of acquisition of Arbutus Inc., and have been treated as contingent consideration payable in the purchase price allocation, based on information available at the date of acquisition, using a probability weighted assessment of the likelihood the milestones would be met and the estimated timing of such payments, and then the potential contingent payments were discounted to their present value using a probability adjusted discount rate that reflects the early stage nature of the development program, time to complete the program development, and market comparative data. Contingent consideration is recorded as a financial liability, and measured at its fair value at each reporting date, based on an updated consideration of the probability-weighted assessment of expected milestone timing, with any changes in fair value from the previous reporting date recorded in the statement of operations and comprehensive loss (see note 2). Drexel and Blumberg In February 2014, Arbutus Inc. entered into a license agreement with Blumberg and Drexel that granted an exclusive, worldwide, sub-licensable license to three different compound series: cccDNA inhibitors, capsid assembly inhibitors and HCC inhibitors. In partial consideration for this license, Arbutus Inc. paid a license initiation fee of $150,000 and issued warrants to Blumberg and Drexel. The warrants were exercised in 2014. Under this license agreement, Arbutus Inc. also agreed to pay up to $3,500,000 in development and regulatory milestones per licensed compound series, up to $92,500,000 in sales performance milestones per licensed product, and royalties in the mid-single digits based upon the proportionate net sales of licensed products in any commercialized combination. The Company is obligated to pay Blumberg and Drexel a double digit percentage of all amounts received from the sub-licensees, subject to customary exclusions. In November 2014, Arbutus Inc. entered into an additional license agreement with Blumberg and Drexel pursuant to which it received an exclusive, worldwide, sub-licensable license under specified patents and know-how controlled by Blumberg and Drexel covering epigenetic modifiers of cccDNA and STING agonists. In consideration for these exclusive licenses, Arbutus Inc. made an upfront payment of $50,000 . Under this agreement, the Company is required to pay up to $1,200,000 for each licensed product upon the achievement of a specified regulatory milestone and a low single digit royalty, based upon the proportionate net sales of compounds covered by this intellectual property in any commercialized combination. The Company is also obligated to pay Blumberg and Drexel a double digit percentage of all amounts received from its sub-licensees, subject to exclusions. Research Collaboration and Funding Agreement with Blumberg In October 2014, Arbutus Inc. entered into a research collaboration and funding agreement with Blumberg under which the Company will provide $1,000,000 per year of research funding for three years, renewable at the Company’s option for an additional three years, for Blumberg to conduct research projects in HBV and liver cancer pursuant to a research plan to be agreed upon by the parties. Blumberg has exclusivity obligations to Arbutus with respect to HBV research funded under the agreement. In addition, the Company has the right to match any third party offer to fund HBV research that falls outside the scope of the research being funded under the agreement. Blumberg has granted the Company the right to obtain an exclusive, royalty bearing, worldwide license to any intellectual property generated by any funded research project. If the Company elects to exercise its right to obtain such a license, the Company will have a specified period of time to negotiate and enter into a mutually agreeable license agreement with Blumberg. This license agreement will include the following pre-negotiated upfront, milestone and royalty payments: an upfront payment in the amount of $100,000 ; up to $8,100,000 upon the achievement of specified development and regulatory milestones; up to $92,500,000 upon the achievement of specified commercialization milestones; and royalties at a low single to mid-single digit rates based upon the proportionate net sales of licensed products from any commercialized combination. On June 5, 2016, the Company and Blumberg entered into an amended and restated research collaboration and funding agreement, primarily to: (i) increase the annual funding amount to Blumberg from $1,000,000 to $1,100,000 ; (ii) extend the initial term through to October 29, 2018; (iii) provide an option for the Company to extend the term past October 29, 2018 for two additional one year terms; and (iv) expand our exclusive license under the Agreement to include the sole and exclusive right to obtain and exclusive, royalty-bearing, worldwide and all-fields license under Blumberg's rights in certain other inventions described in the agreement.

Concentrations of Credit Risk

Concentrations of Credit Risk	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentrations of credit risk	Concentrations of credit risk Credit risk is defined by the Company as an unexpected loss in cash and earnings if a collaborative partner is unable to pay its obligations on a timely basis. The Company’s main source of credit risk is related to its accounts receivable balance which principally represents temporary financing provided to collaborative partners in the normal course of operations. The Company does not currently maintain a provision for bad debts as the majority of accounts receivable are from collaborative partners or government agencies and are considered low risk. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at June 30, 2017 was the accounts receivable balance of $1,042,000 ( December 31, 2016 - $273,000 ). All accounts receivable balances were current at June 30, 2017 and at December 31, 2016 .

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent event	Subsequent event Termination of License Agreement with Alexion On July 27, 2017, the Company announced that it received notice of termination from Alexion for the Company's LNP license agreement. The termination was driven by a strategic review of Alexion's business and research and development portfolio, which included a decision to discontinue development of mRNA therapeutics. The $7,500,000 upfront payment received in March 2017 is non-refundable, and the Company anticipates recording the remaining deferred revenue balance, as well as any revenue and costs related to closeout procedures in the statement of comprehensive loss for the period ended September 30, 2017.

Significant Accounting Polici15

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”) for interim financial statements and accordingly, do not include all disclosures required for annual financial statements. These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016 and included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments and reclassifications necessary to present fairly the financial position, results of operations and cash flows at June 30, 2017 and for all periods presented. The results of operations for the three and six months ended June 30, 2017 and June 30, 2016 are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2016 , except as described below.
Principles of Consolidation	Principles of Consolidation These unaudited condensed consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries, Arbutus Biopharma Inc. ("Arbutus Inc.") and Protiva Biotherapeutics Inc. ("Protiva"). All intercompany transactions and balances have been eliminated on consolidation.
Income or loss per share	Income or loss per share Income or loss per share is calculated based on the weighted average number of common shares outstanding. Diluted loss per share does not differ from basic loss per share since the effect of the Company’s stock options, liability-classified stock option awards, and warrants are anti-dilutive. During the six months ended June 30, 2017 , potential common shares of 5,848,138 ( June 30, 2016 – 5,488,162 ) were excluded from the calculation of loss per common share because their inclusion would be anti-dilutive, of which 226,588 ( June 30, 2016 - 1,258,824 ) relates to shares issued subject to repurchase provisions as part of consideration paid for the acquisition of Arbutus Inc.
Fair value of financial instruments	Fair value of financial instruments The Company measures certain financial instruments and other items at fair value. To determine the fair value, the Company uses the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 inputs are quoted market prices for identical instruments available in active markets. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets. • Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assumptions about market assumptions that would be used to price the asset or liability.
Recent accounting pronouncements	Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606). The standard, as subsequently amended, is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS by creating a new Topic 606, Revenue from Contracts with Customers. This guidance supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The core principle of the accounting standard is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services. The amendments should be applied by either (1) retrospectively to each prior reporting period presented; or (2) retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application ("modified retrospective method"). The new guidance would be effective for fiscal years beginning after December 15, 2017, which for the Company means January 1, 2018. The Company anticipates applying the modified retrospective method for its implementation, and continues to evaluate the expected impact that the standard could have on its consolidated financial statements and related disclosures, which the Company believes most materially relates to its licensing and collaboration contracts that are described in note 4. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Recognition and Measurement of Financial Assets and Financial Liabilities. The update supersedes Topic 840, Leases and requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. Topic 842 retains a distinction between finance leases and operating leases, with cash payments from operating leases classified within operating activities in the statement of cash flows. The amendments in this update are effective for fiscal years beginning after December 15, 2018 for public business entities, which for the Company means January 1, 2019. The Company does not plan to early adopt this update. The extent of the impact of this adoption has not yet been determined. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. Under this update, the classification of cash receipts and payments that have aspects of more than one class of cash flows should be determined first by applying specific guidance in GAAP. In the absence of specific guidance, an entity should determine each separately identifiable source or use within the cash receipts and cash payments on the basis of the nature of the underlying cash flows. An entity should then classify each separately identifiable source or use within the cash receipts and payments on the basis of their nature in financing, investing, or operating activities. In situations in which cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use, the appropriate classification should depend on the activity that is likely to be the predominant source or use of cash flows for the item. The amendments in this update are effective for public business entities for fiscal years beginning after December 31, 2017, which for the Company means January 1, 2018, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the extent of the impact of this adoption. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Statement of Cash Flows: Restricted Cash. The update requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017, which for the Company means January 1, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that included that interim period. The amendments in this update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the extent of the impact of this adoption. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets required and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments in this update are effective for public business entities should be adopted for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, which for the Company means January 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the extent of the impact of this adoption. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. An entity should account for effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments in this Update are effective for all entities for annual periods and interim periods within those annual periods, beginning after December 15, 2017, which for the Company means January 1, 2018. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Company has early adopted the amendments in this Update effective for its interim financial statements for the period ended June 30, 2017. The impact of this adoption did not have an effect in the Company's statement of operations and comprehensive loss for the period ended June 30, 2017 as no award modifications occurred.

Significant Accounting Polici16

Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Assets and liabilities measured at fair value on a recurring basis	The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis, in thousands, and indicates the fair value hierarchy of the valuation techniques used to determine such fair value: Level 1 Level 2 Level 3 June 30, 2017 Assets Cash and cash equivalents $ 24,212 — — $ 24,212 Short-term investments 78,797 — — 78,797 Restricted investment 12,601 — — 12,601 Total $ 115,610 — — $ 115,610 Liabilities Liability-classified options — — $ 983 $ 983 Contingent consideration — — 10,014 10,014 Total — — $ 10,997 $ 10,997 Level 1 Level 2 Level 3 December 31, 2016 Assets Cash and cash equivalents $ 23,413 — — $ 23,413 Short-term investments 107,146 — — 107,146 Restricted investment 12,601 — — 12,601 Total $ 143,160 — — $ 143,160 Liabilities Warrants — — $ 107 $ 107 Liability-classified options 553 553 Contingent consideration — — 9,065 9,065 Total — — $ 9,725 $ 9,725
Changes in fair value of warrants	The following table presents the changes in fair value of the Company’s warrants: Liability at beginning of the period Fair value of warrants exercised in the period Increase (decrease) in fair value of warrants Liability at end of the period Six months ended June 30, 2016 $ 883 $ (246 ) $ (329 ) $ 308 Six months ended June 30, 2017 $ 107 $ (129 ) $ 22 $ —
Changes in fair value of liability option	The following table presents the changes in fair value of the Company’s liability-classified stock option awards: Liability at beginning of the period Increase (decrease) in fair value of liability Liability at end of the period Six months ended June 30, 2016 $ 1,909 $ (597 ) $ 1,312 Six months ended June 30, 2017 $ 553 $ 430 $ 983
Schedule of changes in fair value of contingent consideration	The following table presents the changes in fair value of the Company’s contingent consideration: Liability at beginning of the period Increase in fair value of Contingent Consideration Liability at end of the period Six months ended June 30, 2016 $ 7,497 $ 496 $ 7,993 Six months ended June 30, 2017 $ 9,065 $ 949 $ 10,014

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of carrying values, net of impairment of the intangible assets	The following table summarizes the carrying values of the intangible assets as at June 30, 2017 : June 30, 2017 December 31, 2016 IPR&D – Immune Modulators $ 40,798 $ 40,798 IPR&D – Antigen Inhibitors 14,811 14,811 IPR&D – cccDNA Sterilizers 43,836 43,836 Total Intangible Assets $ 99,445 $ 99,445

Collaborations, Contracts and18

Collaborations, Contracts and Licensing Agreements (Tables)	6 Months Ended
	Jun. 30, 2017
Deferred Revenue Disclosure [Abstract]
Schedule of revenue recognized under collaborations, contracts and licensing agreements	The following tables set forth revenue recognized under collaborations, contracts and licensing agreements, in thousands: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Collaborations and contracts Alexion (a) $ 318 $ — 336 — Dicerna (b) — 32 — 139 Total research and development collaborations and contracts 318 32 336 139 Licensing fees, milestone and royalty payments Alexion licensing fee (a) 652 — 761 — Dicerna licensing fee (b) — 214 — 427 Other milestone and royalty payments (c) 69 63 177 346 Total licensing fees, milestone and royalty payments 721 277 938 773 Total revenue $ 1,039 $ 309 $ 1,274 $ 912
Schedule of deferred collaborations and contracts revenue	The following table sets forth deferred collaborations and contracts revenue: June 30, 2017 December 31, 2016 Alexion current portion (a) $ 2,624 $ — DoD — 15 Deferred revenue, current portion 2,624 15 Alexion long-term portion (a) 4,130 — Total deferred revenue $ 6,754 $ 15

Accounts Payable and Accrued 19

Accounts Payable and Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued liabilities	Accounts payable and accrued liabilities are comprised of the following, in thousands: June 30, 2017 December 31, 2016 Trade accounts payable $ 3,368 $ 3,215 Research and development accruals 3,215 3,131 Professional fee accruals 305 498 Deferred lease inducements 825 350 Payroll accruals 214 2,178 Other accrued liabilities 347 538 $ 8,274 $ 9,910

Significant Accounting Polici20

Significant Accounting Policies - Narrative (Details)	6 Months Ended
	Jun. 30, 2017subsidiaryshares	Jun. 30, 2016shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Wholly-owed subsidiaries | subsidiary	2
Anti-dilutive common shares excluded from calculation of loss per common share (in shares)	5,848,138	5,488,162
Common shares issued subject to repurchase provisions
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common shares excluded from calculation of loss per common share (in shares)	226,588	1,258,824

Significant Accounting Polici21

Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 24,212	$ 23,413
Short-term investments	78,797	107,146
Restricted investment	12,601	12,601
Total Assets	115,610	143,160
Liabilities
Warrants	0	107	$ 308	$ 883
Liability-classified options	983	553
Contingent consideration	10,014	9,065	$ 7,993	$ 7,497
Total Liabilities	10,997	9,725
Level 1
Assets
Cash and cash equivalents	24,212	23,413
Short-term investments	78,797	107,146
Restricted investment	12,601	12,601
Total Assets	115,610	143,160
Level 3
Liabilities
Warrants		107
Liability-classified options	983	553
Contingent consideration	10,014	9,065
Total Liabilities	$ 10,997	$ 9,725

Significant Accounting Polici22

Significant Accounting Policies - Changes in Fair Value of the Company's Warrants (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 01, 2017	Dec. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis [Roll Forward]
Liability at beginning of the period			$ 107	$ 883
Fair value of warrants exercised in the period			(129)	(246)
Increase (decrease) in fair value of warrants			22	(329)
Liability at end of the period	$ 0	$ 308	$ 0	$ 308
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercised (in shares)			179,000	170,500
Proceeds from warrant exercises	0	$ 445	$ 353	$ 445
Class of warrant expired (in shares)					22,000
Warrants and rights outstanding	$ 0		$ 0			$ 107
Cashless exercise provision
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercised (in shares)			0	0

Significant Accounting Polici23

Significant Accounting Policies - Changes in Fair Value of Liability-Classified Stock Options (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis [Roll Forward]
Liability at beginning of the period	$ 553
Liability at end of the period	983
Liability classified stock options
Fair Value, Liabilities Measured on Recurring Basis [Roll Forward]
Liability at beginning of the period	553	$ 1,909
Increase (decrease) in fair value of liability	430	(597)
Liability at end of the period	$ 983	$ 1,312

Significant Accounting Polici24

Significant Accounting Policies - Changes in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration Fair Value, Liability [Roll Forward]
Liability at beginning of the period			$ 9,065	$ 7,497
Increase in fair value of Contingent Consideration	$ (110)	$ 252	949	496
Liability at end of the period	$ 10,014	$ 7,993	$ 10,014	$ 7,993

Intangible Assets and Goodwil25

Intangible Assets and Goodwill - Summary of carrying value of intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Indefinite-lived Intangible Assets [Line Items]
Intangible assets	$ 99,445	$ 99,445
IPR&D – Immune Modulators
Indefinite-lived Intangible Assets [Line Items]
Intangible assets	40,798	40,798
IPR&D – Antigen Inhibitors
Indefinite-lived Intangible Assets [Line Items]
Intangible assets	14,811	14,811
IPR&D – cccDNA Sterilizers
Indefinite-lived Intangible Assets [Line Items]
Intangible assets	$ 43,836	$ 43,836

Intangible Assets and Goodwil26

Intangible Assets and Goodwill - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charge	$ 0	$ 156,324,000

Collaborations, Contracts and27

Collaborations, Contracts and Licensing Agreements - Revenue Recognized Under Collaborations, Contracts and Licensing Agreements (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Collaborations and contracts
Collaborations and contracts	$ 318,000	$ 32,000	$ 336,000	$ 139,000
Licensing fees, milestone and royalty payments
Licensing fees, milestone and royalty payments	721,000	277,000	938,000	773,000
Total revenue	1,039,000	309,000	1,274,000	912,000
Alexion
Collaborations and contracts
Collaborations and contracts	318,000	0	336,000	0
Licensing fees, milestone and royalty payments
Licensing fees, milestone and royalty payments	652,000	0	761,000	0
Dicerna
Collaborations and contracts
Collaborations and contracts	0	32,000	0	139,000
Licensing fees, milestone and royalty payments
Licensing fees, milestone and royalty payments	0	214,000	0	427,000	$ 1,066,000
Other milestone and royalty payments
Licensing fees, milestone and royalty payments
Licensing fees, milestone and royalty payments	$ 69,000	$ 63,000	$ 177,000	$ 346,000

Collaborations, Contracts and28

Collaborations, Contracts and Licensing Agreements - Deferred Collaborations and Contracts Revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current portion	$ 2,624	$ 15
Deferred revenue, long-term portion	4,130	0
Total deferred revenue	6,754	15
Alexion
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current portion	2,624	0
Deferred revenue, long-term portion	4,130	0
DoD
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current portion	$ 0	$ 15

Collaborations, Contracts and29

Collaborations, Contracts and Licensing Agreements - Narrative (Details)	Nov. 16, 2014USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2012USD ($)	Mar. 16, 2017USD ($)	May 06, 2006chemotherapy_products
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Total deferred revenue		$ 6,754,000		$ 6,754,000		$ 15,000
Licensing fees, milestone and royalty payments		721,000	$ 277,000	938,000	$ 773,000
Number of chemotherapy products with worldwide licenses | chemotherapy_products									3
Collaborations and contracts		318,000	32,000	336,000	139,000
Marqibo Commercial Sales
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Collaborations and contracts							$ 1,000,000
Marqibo
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Royalty revenue		65,000	60,000	123,000	91,000
Alexion
Research and Development Arrangement, Contract to Perform for Others [Line Items]
License upfront payment								$ 7,500,000
Potential milestone payments								$ 75,000,000
Licensing fees, milestone and royalty payments		652,000	0	761,000	0
Collaborations and contracts		318,000	0	336,000	0
Dicerna
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Total deferred revenue	$ 2,500,000
Milestone payment	$ 22,000,000
Licensing fees, milestone and royalty payments		0	214,000	0	427,000	$ 1,066,000
Collaborations and contracts		$ 0	32,000	$ 0	139,000
Talon
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Potential milestone payments							$ 18,000,000
Marqibo
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Royalties percentage		2.50%		2.50%
Other milestone and royalty payments
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Licensing fees, milestone and royalty payments		$ 69,000	$ 63,000	$ 177,000	$ 346,000

Accounts Payable and Accrued 30

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Trade accounts payable	$ 3,368	$ 3,215
Research and development accruals	3,215	3,131
Professional fee accruals	305	498
Deferred lease inducements	825	350
Payroll accruals	214	2,178
Other accrued liabilities	347	538
Accounts payable and accrued liabilities	$ 8,274	$ 9,910

Contingencies and Commitments (

Contingencies and Commitments (Details) CAD in Thousands	Jun. 05, 2016USD ($)research_funding_period_extensions	Jan. 16, 2015USD ($)	Jun. 30, 2017USD ($)programLegal_proceedings	Nov. 30, 2014USD ($)	Oct. 31, 2014USD ($)	Feb. 28, 2014USD ($)compound_series	Jun. 30, 2017USD ($)program	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)program	Jun. 30, 2016USD ($)	Mar. 31, 2004USD ($)	Mar. 31, 2004CAD	Jun. 30, 2017USD ($)program	Jun. 30, 2017CAD	Jun. 30, 2017CADprogram
Contingencies and Commitments [Line Items]
Percent of costs funded by TPC											27.00%	27.00%
Maximum contribution for product											$ 7,179,000	CAD 9,323
Cumulative contribution for product													$ 2,853,000	CAD 3,702
Royalty guarantees commitments percentage									2.50%
Arbitration with the University of British Columbia
Contingencies and Commitments [Line Items]
Loss contingency, damages sought for allegedly unpaid royalties		$ 3,500,000
Number of legal proceedings | Legal_proceedings			3
Arbutus Inc. | Enantigen
Contingencies and Commitments [Line Items]
Business combination, high end of payment upon achievement of certain triggering events					$ 21,000,000
Programs in pre-clinical development | program			2				2		2				2		2
Business combination, regulatory, development and sales milestone payments estimated fair value					6,727,000
Blumberg and Drexel | Arbutus Inc.
Contingencies and Commitments [Line Items]
Number of series of compounds | compound_series						3
License fee				$ 50,000		$ 150,000
Development and regulatory milestones payment per licensed compound series, maximum				$ 1,200,000		3,500,000
Sales performance milestones payment per licensed product, maximum						$ 92,500,000
Blumberg | Arbutus Inc.
Contingencies and Commitments [Line Items]
Research funding per year under research collaboration and funding agreement	$ 1,100,000				$ 1,000,000
Research Funding Period, Number of Renewable Options | research_funding_period_extensions	2
Research funding period					3 years
Research funding period, renewable option	1 year				3 years
Research funding agreement exclusive license upfront payment					$ 100,000
Research funding agreement exclusive license maximum development and regulatory milestone payments					8,100,000
Research funding agreement license maximum commercialization milestone payments					$ 92,500,000
Marqibo
Contingencies and Commitments [Line Items]
Royalty revenue							$ 65,000	$ 60,000	$ 123,000	$ 91,000
Royalty payable			$ 3,000				3,000	$ 2,000	3,000	$ 2,000			$ 3,000
Royalties paid or accrued									20,000
Contractual obligation			$ 2,833,000				$ 2,833,000		$ 2,833,000				$ 2,833,000		CAD 3,676

Concentrations of Credit Risk (

Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Accounts receivable	$ 1,042	$ 273

Subsequent Event Subsequent Eve

Subsequent Event Subsequent Events (Details)	Jul. 27, 2017USD ($)
Alexion | Subsequent Event [Member]
Subsequent Event [Line Items]
License Upfront Payment	$ 7,500,000