STOCK TITAN

Armata Pharmaceuticals Announces Second Quarter 2022 Results and Provides Corporate Update

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary

Armata Pharmaceuticals (ARMP) announced its Q2 2022 financial results, reporting significant advancements in bacteriophage therapeutics. The company recognized approximately $1.9 million in grant revenue and expects an additional $15 million from the Defense Health Agency. R&D expenses rose to $9 million, up from $5.2 million. Armata's operational loss increased to $9.2 million compared to $6.2 million a year prior. The company maintained a healthy cash position with $37 million in cash and equivalents. Key developments include the advancement of the AP-PA02 trial and IND approvals for the AP-SA02 program.

Positive
  • Recognition of approximately $1.9 million in grant revenue for Q2 2022.
  • Expected $15 million grant funding from the Department of Defense.
  • Advancement of AP-PA02 in the SWARM-P.a. trial and initiation of the Phase 2 Tailwind study.
  • IND approval for AP-SA02 in prosthetic joint infection, expanding the pipeline.
  • Improved manufacturing processes enhance yield and purity.
Negative
  • Loss from operations increased to $(9.2) million, up from $(6.2) million in Q2 2021.
  • R&D expenses rose significantly to $9 million, indicating higher operational costs.

MARINA DEL REY, Calif., Aug. 11, 2022 /PRNewswire/ -- Armata Pharmaceuticals, Inc. (NYSE American: ARMP) ("Armata" or the "Company"), a biotechnology company focused on pathogen-specific bacteriophage therapeutics for antibiotic-resistant and difficult-to-treat bacterial infections, today announced financial results for its second quarter 2022 and provided a corporate update.  

Second Quarter 2022 and Recent Developments:

  • AP-PA02 advancing through final MAD cohort of SWARM-P.a. trial
  • Phase 2 Tailwind study of AP-PA02 in non‐CF bronchiectasis (NCFB) initiated
  • AP-SA02 Phase 1b/2a Staphylococcus aureus bacteremia study ('diSArm') actively enrolling
  • Pipeline expansion continues with IND approval for AP-SA02 in prosthetic joint infection
  • Engineered, second generation AP-PA02 therapeutic candidate selected
  • Continued investment in manufacturing capabilities

"During the second quarter, we continued to advance our portfolio of innovative bacteriophage therapeutics. We now have four approved INDs, positioning Armata to robustly evaluate bacteriophage effectiveness in difficult-to-treat infections," stated Dr. Brian Varnum, Chief Executive Officer of Armata. "At the same time, we continued to advance the science of bacteriophage. Armata's synthetic biologists have engineered a second-generation AP-PA02 product with improved pharmacological properties. Additionally, significant improvements in manufacturing processes have resulted in improved yield and purity, with methods that are readily scalable. These methods lay the groundwork for the next phase of Armata's growth as we build out our new 56,000 square foot facility."

Second Quarter 2022 Financial Results:

Grant Revenue. The Company recognized grant revenue of approximately $1.9 million for the three months ended June 30, 2022, which represents Medical Technology Enterprise Consortium's ("MTEC") share of the costs incurred for the Company's AP-SA02 program for the treatment of Staphylococcus aureus bacteremia. The Company expects to receive $15.0 million in grant funding from MTEC administered by the U.S. Department of Defense and the Defense Health Agency and Joint Warfighter Medical Research Program. The Company recognized approximately $1.2 million of revenue in the comparable period in 2021.

Research and Development. Research and development expenses for the three months ended June 30, 2022, were approximately $9.0 million as compared to approximately $5.2 million for the comparable period in 2021. The Company continues to invest in clinical trial and personnel related expenses associated with its primary development programs.

General and Administrative. General and administrative expenses for the three months ended June 30, 2022, were approximately $2.1 million as compared to approximately $2.1 million for the comparable period in 2021.

Loss from Operations. Loss from operations for the three months ended June 30, 2022, was $(9.2) million as compared to a loss from operations of approximately $(6.2) million for the comparable period in 2021.

Cash and Equivalents. As of June 30, 2022, Armata held approximately $37.0 million of unrestricted cash and cash equivalents, as compared to $10.3 million as of December 31, 2021.  

As of August 9, 2022, there were approximately 36.1 million shares of the Company's common stock outstanding.  

About Armata Pharmaceuticals, Inc.

Armata is a clinical-stage biotechnology company focused on the development of 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. In addition, in collaboration with Merck, known as MSD outside of the United States and Canada, Armata is developing proprietary synthetic phage candidates to target an undisclosed infectious disease agent. Armata is committed to advancing phage with drug development expertise that spans bench to clinic including in-house phage specific GMP manufacturing. 

Forward Looking Statements

This communication contains "forward-looking" statements, including, without limitation, statements related to the use of proceeds from the securities offering, Armata's bacteriophage development programs,  Armata's ability to meet expected milestones, Armata's ability to be a leader in the development of phage-based therapeutics, Armata's expectations regarding receiving future grant funding and statements related to the timing and results of clinical trials, including the anticipated initiation and advancement of clinical trials of AP-PA02 and AP-SA02, Armata's ability to develop new products based on bacteriophages and synthetic phages, and Armata's expectations for performance of Armata's therapeutic candidates based on Armata's recent nonclinical work. Any statements contained in this communication that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements are based upon Armata's current expectations. Forward-looking statements involve risks and uncertainties. Armata's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the ability of Armata's lead clinical candidates, AP-PA02 and AP-SA02, to be more effective than previous candidates; Armata's ability to expedite development of AP-PA02 and AP-SA02; Armata's ability to advance its preclinical and clinical programs and the uncertain and time-consuming regulatory approval process; Armata's ability to develop products based on bacteriophages and synthetic phages to kill bacterial pathogens; the Company's expected market opportunity for its products; Armata's ability to sufficiently fund its operations as expected, including obtaining additional funding as needed; and any delays or adverse events within, or outside of, Armata's control, caused by the COVID-19 pandemic. 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 17, 2022, 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
Armata Pharmaceuticals, Inc.
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










June 30, 2022


December 31, 2021







Assets







  Cash and cash equivalents


$

36,978,000


$

10,288,000

  Awards receivable



1,883,000



2,989,000

  Prepaids and other current assets



2,445,000



1,718,000

Total current assets



41,306,000



14,995,000

Property and equipment, net



38,277,000



38,072,000

Other long term assets



7,655,000



2,955,000

Intangible assets, net



13,746,000



13,746,000

Total assets


$

100,984,000


$

69,768,000








Liabilities and stockholders' equity







Total current liabilities


$

7,383,000


$

4,814,000

Long term liabilities



37,233,000



36,480,000

Deferred tax liability



3,077,000



3,077,000

Total liabilities



47,693,000



44,371,000

Stockholders' equity



53,291,000



25,397,000

Total liabilities and stockholders' equity


$

100,984,000


$

69,768,000








 

Armata Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations
















Three Months Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)














Grant Revenue


$

1,883,000


$

1,168,000


$

3,119,000



2,234,000

Operating expenses:













Research and development


$

9,020,000


$

5,225,000


$

17,048,000


$

9,575,000

General and administrative



2,083,000



2,139,000



4,066,000



4,290,000

Total operating expenses



11,103,000



7,364,000



21,114,000



13,865,000

Loss from operations



(9,220,000)



(6,196,000)



(17,995,000)



(11,631,000)

Other income (expense), net



5,000



2,000



6,000



(58,000)

Loss before income taxes and Net Loss


$

(9,215,000)


$

(6,194,000)


$

(17,989,000)


$

(11,689,000)

Net loss per share, basic and diluted


$

(0.26)


$

(0.25)


$

(0.55)


$

(0.52)

Weighted average shares outstanding,
basic and diluted



35,999,642



24,762,818



32,517,416



22,622,477














 

Armata Pharmaceuticals, Inc.


Condensed Consolidated Statements of Cash Flows












Six Months Ended June 30,




2022


2021








Operating activities:








Net loss


$

(17,989,000)


$

(11,689,000)


Adjustments required to reconcile net loss to net cash used in
operating activities:








Stock-based compensation



1,442,000



1,749,000


Depreciation



421,000



578,000


Payment of accreted interest for deferred consideration for
asset acquisition



-



(586,000)


Non-cash interest expense



-



62,000


Changes in operating assets and liabilities, net



4,463,000



(127,000)


Net cash used in operating activities



(11,663,000)



(10,013,000)


Investing activities:








Purchases of property and equipment, net



(1,372,000)



(494,000)


Net cash used in investing activities



(1,372,000)



(494,000)


Financing activities:








Payment of deferred consideration for asset acquisition



-



(1,414,000)


Proceeds from sale of common stock, net of offering costs



44,414,000



19,363,000


Proceeds from exercise of warrants and stock options



71,000



445,000


Net cash provided by (used in) financing activities



44,485,000



18,394,000


Net increase (decrease) in cash and cash equivalents



31,450,000



7,887,000


Cash, cash equivalents and restricted cash, beginning of period



11,488,000



10,849,000


Cash, cash equivalents and restricted cash, end of period


$

42,938,000


$

18,736,000


























Reconciliation of Cash and cash equivalents:



Six Months Ended June 30,




2022


2021

Cash and cash equivalents


$

36,978,000


$

17,536,000


Restricted cash



5,960,000



1,200,000


Cash, cash equivalents and restricted cash


$

42,938,000


$

18,736,000










 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/armata-pharmaceuticals-announces-second-quarter-2022-results-and-provides-corporate-update-301604605.html

SOURCE Armata Pharmaceuticals, Inc.

FAQ

What were Armata Pharmaceuticals' Q2 2022 financial results?

Armata reported a loss from operations of $(9.2) million and recognized approximately $1.9 million in grant revenue for Q2 2022.

How much grant funding does Armata expect to receive?

Armata expects to receive $15 million in grant funding from the Department of Defense.

What advancements did Armata Pharmaceuticals make in their trials?

Armata advanced AP-PA02 through the final MAD cohort of the SWARM-P.a. trial and initiated the Phase 2 Tailwind study.

What is the current cash position of Armata Pharmaceuticals?

As of June 30, 2022, Armata held approximately $37 million in unrestricted cash and cash equivalents.

What are the current research and development expenses for Armata?

R&D expenses for Q2 2022 were approximately $9 million, up from $5.2 million in the same quarter of 2021.

Armata Pharmaceuticals, Inc.

NYSE:ARMP

ARMP Rankings

ARMP Latest News

ARMP Stock Data

71.46M
10.77M
70.25%
3.82%
0.01%
Biotechnology
Biological Products, (no Disgnostic Substances)
Link
United States of America
LOS ANGELES