Armata Pharmaceuticals Announces Fourth Quarter and Full-Year 2024 Results and Provides Corporate Update

Rhea-AI Summary

Armata Pharmaceuticals (NYSE: ARMP) reported Q4 and full-year 2024 results, highlighting significant clinical progress. The company announced positive topline results from its Phase 2 Tailwind study of inhaled AP-PA02 for treating Pseudomonas aeruginosa infection in non-cystic fibrosis bronchiectasis patients, showing statistically significant bacterial reduction.

Q4 2024 financial highlights include:

• Grant revenue of $1.2M (vs $1.5M in Q4 2023)
• R&D expenses of $8.5M (vs $7.9M in Q4 2023)
• Net income of $2.6M or $0.07 per basic share
• Cash position of $14.8M as of December 31, 2024

The company secured a $10M secured credit agreement with Innoviva Strategic Opportunities in March 2025. Armata also completed enrollment in its Phase 1b/2a diSArm study of AP-SA02 for S. aureus bacteremia, with topline results expected in H1 2025.

Positive

• Positive Phase 2 Tailwind study results showing significant bacterial reduction
• Net income of $2.6M in Q4 2024 vs loss in Q4 2023
• Secured additional $10M financing
• AP-PA02 demonstrated effectiveness comparable to antibiotics combination therapy
• Successful completion of diSArm study enrollment

Negative

• Declining grant revenue year-over-year (Q4 2024: $1.2M vs Q4 2023: $1.5M)
• Increased R&D expenses (Q4 2024: $8.5M vs Q4 2023: $7.9M)
• Cash position decreased from $19.2M to $14.8M year-over-year
• High-interest rate (14%) on new credit agreement

Insights

Biotech Clinical Development Expert

Armata's Phase 2 Tailwind study results represent a significant clinical milestone for bacteriophage therapy in chronic pulmonary infections. The data showing AP-PA02 achieving statistically significant reductions in P. aeruginosa colony counts as monotherapy is particularly noteworthy - approximately one-third of subjects demonstrated at least a 2-log CFU reduction with phage alone.

What's scientifically compelling is the finding that phage monotherapy performed comparably to combination therapy with antibiotics. This suggests bacteriophage could potentially reduce reliance on chronic antibiotics in NCFB patients, addressing a critical need given the growing antimicrobial resistance crisis. The favorable safety profile with only mild, self-limiting adverse events adds to the positive clinical picture.

The completion of enrollment in the diSArm study for S. aureus bacteremia further validates Armata's platform approach. The preliminary blinded safety data showing good tolerability at high IV doses (up to 2E11 PFU daily) is encouraging, as is the observed persistence suggesting potential in vivo phage amplification despite concurrent antibiotic treatment.

With two successful clinical studies for AP-PA02 (Tailwind and the previous SWARM-P.a. trial), Armata appears well-positioned to advance toward pivotal trials. Their focus on developing phages as antibiotic alternatives represents a potentially disruptive approach in addressing difficult-to-treat bacterial infections where current options are

Biotechnology Financial Analyst

Armata's financial results reveal a complex picture beneath the headline $2.6 million net income ($0.07 per basic share) for Q4 2024. This profit stems primarily from $14.2 million in non-cash gains from convertible loan fair value changes and $2.2 million from debt extinguishment - not operational improvements.

The operational fundamentals show continued challenges with loss from operations increasing to $10.5 million from $9.6 million year-over-year. R&D expenses rose to $8.5 million, reflecting continued investment in clinical programs, while grant revenue declined slightly to $1.2 million.

Cash position has deteriorated to $14.8 million from $19.2 million a year ago, raising potential runway concerns. The new $10 million credit facility from major shareholder Innoviva provides additional operating capital but at a steep 14% interest rate, indicating expensive financing terms. The maturity date extension on existing loans to March 2026 does provide near-term financial flexibility.

For a clinical-stage biotech with promising trial results, securing adequate funding for pivotal trials remains critical. While the positive clinical developments enhance Armata's partnership potential and future financing options, investors should monitor cash burn closely given the company's continued operational losses and relatively modest cash reserves despite the recent capital infusion.

LOS ANGELES, March 20, 2025 /PRNewswire/ -- Armata Pharmaceuticals, Inc. (NYSE American: ARMP) ("Armata" or the "Company"), a clinical-stage biotechnology company focused on the development of high-purity, pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections, today announced financial results for its fourth quarter and full-year ended December 31, 2024, and provided a corporate update.

Fourth Quarter 2024 and Recent Developments:

• Announced encouraging topline results from its Phase 2 Tailwind study evaluating inhaled AP-PA02 as a potential treatment for chronic pulmonary disease; Pseudomonas aeruginosa ("P. aeruginosa" or "P.a.") infection in non-cystic fibrosis bronchiectasis ("NCFB") patients.
  • The Phase 2 Tailwind study represents the second successful clinical trial for AP-PA02, Armata's lead pulmonary candidate, which was first evaluated in people with cystic fibrosis in the Phase 1b/2a SWARM-P.a. trial that completed in 2023;
  • Inhaled AP-PA02 was well-tolerated, with treatment-emergent adverse events mild and self-limiting;
  • Post-hoc intent-to-treat analysis demonstrated a statistically significant reduction of P.a. colony forming units ("CFUs") at one and two weeks post-dosing. Approximately one-third of all subjects treated with phage monotherapy exhibited at least a 2-log CFU reduction in P.a.; and
  • Data suggest AP-PA02 alone is as effective as AP-PA02 plus antibiotics in reducing P.a. CFUs in the lungs of NCFB patients, and indicates the potential for phage therapy to reduce reliance on chronic antibiotic use.

• Completed enrollment of Phase 1b/2a diSArm study of intravenous ("IV") AP-SA02 as a potential treatment for Staphylococcus aureus ("S. aureus") bacteremia.
  • Blinded data demonstrates AP-SA02 is well-tolerated following IV administration of up to 5E10 plaque forming units ("PFUs") every six hours (2E11 PFU every 24 hours) for five days;
  • Persistence of AP-SA02 in a subset of complicated bacteremia subjects is consistent with in vivo phage amplification despite 48-72 hours of broad-spectrum IV antibiotics -- unblinding is critical to understand subjects' clinical presentation;
  • Topline data anticipated in the first half of 2025; and
  • Anticipate that findings from the diSArm study will inform the design of a pivotal trial strategy to be discussed with the U.S. Food and Drug Administration (the "FDA") that may enable Armata to obtain agreement on a path to potential approval.

• Further advanced bacteriophage science through presentations and publications.
  • Presented at 7th Annual Phage Therapy Summit, March 11-13, 2025, Boston, MA;
  • Presented at 5th Annual Phage Futures Meeting, November 19, 2024, Boston, MA; and
  • Announced structural biology publication in the journal Communications Biology describing a representative phage in Armata's clinical candidate, AP-PA02.

• In March 2025, entered into a $10.0 million secured credit agreement with Innoviva Strategic Opportunities LLC, a wholly-owned subsidiary of Innoviva, Armata's principal shareholder.

"During the fourth quarter, we achieved another significant clinical milestone with encouraging topline results from our Phase 2 Tailwind study evaluating inhaled AP-PA02 in NCFB patients as both monotherapy and in combination with inhaled anti-pseudomonal antibiotics," stated Dr. Deborah Birx, Chief Executive Officer of Armata. "This was the second successful clinical evaluation of AP-PA02 following our Phase 1b/2a SWARM-P.a. trial in cystic fibrosis patients. We believe the learnings gained from the two completed Phase 2 studies position Armata to design a pivotal trial to evaluate AP-PA02 as an alternative to antibiotics in NCFB patients with chronic pulmonary P. aeruginosa infection." 

"We also completed enrollment of our Phase 1b/2a diSArm study evaluating our high purity phage product candidate, AP-SA02, as a potential treatment for S. aureus bacteremia. We expect to report topline results in the first half of this year, and believe data will provide valuable insights into the safety and tolerability of AP-SA02 at high intravenous doses, and inform the dose and schedule to be studied in a larger efficacy study, which we plan to discuss with the FDA this year." 

"We remain committed to developing a definitive efficacy trial focused on phage as an alternative to broad-spectrum antibiotics and/or antibiotic-sparing to decrease the utilization of traditional antibiotics and their detrimental impact on the normal human microbiome. I believe we are well positioned to achieve value-creating milestones in 2025 as the Armata team continues to work to introduce a novel therapeutic class to help fight the global health crisis of antimicrobial resistance," Dr. Birx concluded.

Fourth Quarter 2024 Financial Results

Grant Revenue. The Company recognized grant revenue of $1.2 million for the three months ended December 31, 2024 as compared to $1.5 million in the comparable period in 2023, which represents MTEC's share of the costs incurred for the Company's AP-SA02 program for the treatment of S. aureus bacteremia.

Research and Development. Research and development expenses for the three months ended December 31, 2024 were approximately $8.5 million as compared to approximately $7.9 million for the comparable period in 2023. The Company continues to invest in clinical-related expenses associated with its primary development programs.

General and Administrative. General and administrative expenses for the three months ended December 31, 2024 were approximately $3.3 million as compared to approximately $3.2 million for the comparable period in 2023. The increase was mainly related to an increase of $0.3 million in personnel related expenses during the fourth quarter of 2024, offset in part by a decrease of $0.2 million in professional services.

Loss from Operations. Loss from operations for the three months ended December 31, 2024 was approximately $10.5 million as compared to a loss from operations of approximately $9.6 million for the comparable period in 2023.

Net Income (Loss). The net income for the fourth quarter of 2024 was $2.6 million, or $0.07 per share on a basic and $(0.23) per share on a diluted basis, as compared to a net loss of $19.8 million, or $(0.55) per share on both a basic and diluted basis, for the comparable period in 2023. The net income for the quarter ended December 31, 2024 included non-cash gain from the changes in fair value of convertible loan of $14.2 million and non-cash gain from debt extinguishment of $2.2 million, as compared to $8.9 million loss from the changes in fair value of convertible loan for the quarter ended December 31, 2023.

Cash and Equivalents. As of December 31, 2024, Armata held approximately $14.8 million of cash and cash equivalents and restricted cash, as compared to $19.2 million as of December 31, 2023.

On March 12, 2025, the Company entered into a credit and security agreement for a loan in an aggregate amount of $10.0 million with Innoviva SO. The loan bears interest at an annual rate of 14% and matures on March 12, 2026. Principal and accrued interest are payable at maturity. The Company and Innoviva also entered into amendments to the three pre-existing credit and security agreements in order to, among other things, extend the maturity dates under such agreements to March 12, 2026.

As of February 28, 2025, there were approximately 36.2 million common shares outstanding.

About Armata Pharmaceuticals, Inc.

Armata is a clinical-stage biotechnology company focused on the development of high-purity pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections using its proprietary bacteriophage-based technology. Armata is developing and advancing a broad pipeline of natural and synthetic phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other pathogens. Armata is committed to advancing phage therapy with drug development expertise that spans bench to clinic including in-house phage-specific cGMP manufacturing to support full commercialization.

Forward Looking Statements

This communication contains "forward-looking" statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events, results or to Armata's future financial performance and involve known and unknown risks, uncertainties and other factors which may cause Armata's actual results, performance or events to be materially different from any future results, performance or events expressed or implied by the forward-looking statements. In some cases, you can identify these statements by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or the negative of those terms, and similar expressions. These forward-looking statements reflect management's beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this communication and are subject to risks and uncertainties including risks related to Armata's development of bacteriophage-based therapies; ability to staff and maintain its production facilities under fully compliant current Good Manufacturing Practices; ability to meet anticipated milestones in the development and testing of the relevant product; ability to be a leader in the development of phage-based therapeutics; ability to achieve its vision, including improvements through engineering and success of clinical trials; ability to successfully complete preclinical and clinical development of, and obtain regulatory approval of its product candidates and commercialize any approved products on its expected timeframes or at all; and Armata's estimates regarding anticipated operating losses, capital requirements and needs for additional funds. Additional risks and uncertainties relating to Armata and its business can be found under the caption "Risk Factors" and elsewhere in Armata's filings and reports with the SEC, including in Armata's Annual Report on Form 10-K, filed with the SEC on March 20, 2025, and in its subsequent filings with the SEC.

Armata expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Armata's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. 

Media Contacts:

At Armata:
Pierre Kyme
ir@armatapharma.com
310-665-2928

Investor Relations:
Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
212-915-2569

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (in thousands)
		December 31, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents		$	9,291		$	13,523
Prepaid expenses and other current assets			1,273			2,265
Other receivables			744			3,363
Total current assets			11,308			19,151
Property and equipment, net			13,241			12,559
Operating lease right-of-use asset			41,687			44,717
Intangible assets, net			13,746			13,746
Other long term assets			6,455			8,190
Total assets		$	86,437		$	98,363
Liabilities and stockholders' deficit
Accounts payable, accrued and other current liabilities			9,295			16,461
Term debt, current			38,954			—
Total current liabilities		$	48,249		$	16,461
Convertible loan, non-current			32,897			58,633
Term debt, non-current			22,539			23,674
Operating lease liabilities, net of current portion			27,694			28,583
Deferred tax liability			3,077			3,077
Total liabilities			134,456			130,428
Stockholders' deficit			(48,019)			(32,065)
Total liabilities and stockholders' deficit		$	86,437		$	98,363

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data)
		Three Months Ended						Year Ended
		December 31,						December 31,
		2024			2023			2024			2023
Grant revenue		$	1,235		$	1,528		$	5,174		$	4,529
Operating expenses
Research and development			8,450			7,928			34,426			33,770
General and administrative			3,323			3,179			13,184			11,649
Total operating expenses			11,773			11,107			47,610			45,419
Operating loss			(10,538)			(9,579)			(42,436)			(40,890)
Interest income			130			68			697			179
Interest expense			(3,281)			(1,450)			(10,742)			(2,626)
Change in fair value of convertible loan			14,123			(8,886)			31,399			(21,845)
Gain (loss) on debt and convertible loan extinguishments			2,166			—			2,166			(3,863)
Net income (loss)		$	2,600		$	(19,847)		$	(18,916)		$	(69,045)
Per share information:
Net income (loss) per share, basic		$	0.07		$	(0.55)		$	(0.52)		$	(1.91)
Weighted average shares outstanding, basic			36,183,067			36,100,869			36,160,848			36,075,555
Net loss per share, diluted		$	(0.23)		$	(0.55)		$	(0.89)		$	(1.91)
Weighted average shares outstanding, diluted			59,082,190			36,100,869			59,059,971			36,075,555

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Statements of Cash Flows (in thousands)
		Year Ended December 31,
		2024			2023
Operating activities:
Net loss		$	(18,916)		$	(69,045)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense			1,325			972
Stock-based compensation expense			2,893			938
Change in fair value of convertible loan			(31,399)			21,845
Non-cash interest expense			10,758			2,573
Non-cash interest income			—			(22)
Gain (loss) on debt and convertible loan extinguishments			(2,166)			3,863
Change in right-of-use asset			2,053			1,018
Loss from disposal of property and equipment			—			81
Changes in operating assets and liabilities:			(2,099)			(9,646)
Net cash used in operating activities			(37,551)			(47,423)
Investing activities:
Purchases of property and equipment			(1,879)			(8,144)
Proceeds from sale of property and equipment			—			10
Net cash used in investing activities			(1,879)			(8,134)
Financing activities:
Proceeds from issuance of convertible loan, net of issuance costs			—			29,101
Proceeds from issuance of term debt, net of issuance costs			34,889			24,925
Payments for taxes related to net share settlement of equity awards			(61)			(43)
Proceeds from exercise of stock options			130			5
Net cash provided by financing activities			34,958			53,988
Net decrease in cash, cash equivalents and restricted cash			(4,472)			(1,569)
Cash, cash equivalents and restricted cash, beginning of period			19,243			20,812
Cash, cash equivalents and restricted cash, end of period		$	14,771		$	19,243

 

		Year Ended December 31,
		2024			2023
Cash and cash equivalents		$	9,291		$	13,523
Restricted cash			5,480			5,720
Cash, cash equivalents and restricted cash, end of period		$	14,771		$	19,243

 

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SOURCE Armata Pharmaceuticals, Inc.

FAQ

What were the key findings from ARMP's Phase 2 Tailwind study?

The study showed AP-PA02 was well-tolerated with mild side effects and demonstrated statistically significant reduction in P. aeruginosa bacteria, with one-third of subjects showing at least a 2-log CFU reduction.

How much revenue did ARMP generate in Q4 2024?

Armata reported grant revenue of $1.2 million in Q4 2024, compared to $1.5 million in Q4 2023.

What is the current cash position of ARMP as of December 2024?

Armata held approximately $14.8 million in cash, cash equivalents, and restricted cash as of December 31, 2024.

When will ARMP release topline results for the diSArm study?

Armata expects to report topline results from the Phase 1b/2a diSArm study in the first half of 2025.

What financing did ARMP secure in March 2025?

ARMP secured a $10 million secured credit agreement with Innoviva Strategic Opportunities, bearing 14% annual interest and maturing March 12, 2026.