Armata Pharmaceuticals Announces Second Quarter Results and Provides General Corporate Update
Armata Pharmaceuticals (ARMP) reported its second-quarter 2021 results, noting the retirement of CEO Todd R. Patrick and the appointment of Brian Varnum as his successor. The company received a $750,000 milestone payment from the Cystic Fibrosis Foundation to support its Phase 1b/2a clinical trial for AP-PA02 targeting chronic Pseudomonas aeruginosa infections. Grant revenue was $1.2 million, a significant increase from $31,000 in Q2 2020. However, R&D expenses surged to $5.2 million, contributing to an operating loss of $6.2 million. Armata has $17.5 million in cash as of June 30, 2021.
- Appointment of Brian Varnum as new CEO, ensuring continuity in leadership.
- Received a $750,000 milestone payment from the Cystic Fibrosis Foundation.
- Significant grant revenue of $1.2 million, up from $31,000 in the prior year.
- Cash reserves increased to $17.5 million, improving financial stability.
- Operating loss widened to $(6.2) million compared to $(4.6) million in Q2 2020.
- R&D expenses increased significantly to $5.2 million, indicating higher operational costs.
MARINA DEL REY, Calif., Aug. 12, 2021 /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 results for the second quarter of 2021 and provided a corporate update.
Second Quarter 2021 and Recent Developments:
- Announced that Todd R. Patrick, Chief Executive Officer, has retired from the company. Armata's Board of Directors has appointed Brian Varnum, PhD, the company's former President and Chief Development Officer, to succeed Mr. Patrick. Mr. Patrick will retain his seat on Armata's Board and has agreed to serve as an advisor to the company at least through 2022.
- Continued to advance the SWARM-P.a. trial and received a milestone payment of
$750,000 pursuant to the Company's previously announced Therapeutics Development Award from the Cystic Fibrosis Foundation. The award, up to$5 million , is intended to partially fund Armata's Phase 1b/2a clinical trial of its lead clinical candidate, AP-PA02, as a treatment for chronic Pseudomonas aeruginosa airway infections in people with cystic fibrosis. - Progressed IND-enabling activities in preparation for a Phase 1b/2 clinical trial evaluating AP-SA02 as a potential treatment for Staphylococcus aureus bacteremia.
"We continue to make good progress advancing our lead phage product for chronic Pseudomonas airway infections in people with cystic fibrosis. We are very appreciative of the continued support from the Cystic Fibrosis Foundation and the Therapeutics Development Network as we have navigated the challenges of conducting a clinical trial in the respiratory space during COVID-19," stated Brian Varnum, PhD, Chief Executive Officer of Armata. "In addition, our pipeline programs are advancing. With the support of the U.S. Department of Defense, our phage product for Staphylococcus aureus bacteremia, AP-SA02, is progressing towards an IND filing. We are also leveraging our lead products and our proprietary phage library to identify the next clinical indication to prioritize."
Anticipated 2021 and 2022 Milestones:
- Complete the SWARM-P.a. Phase 1b/2a clinical trial
- Initiate a Phase 1b/2 clinical trial evaluating AP-SA02 as a potential treatment for Staphylococcus aureus bacteremia
- Initiate at least one additional clinical trial in a new indication
Second Quarter 2021 Financial Results
Grant Revenue. The Company recognized grant revenue of
Research and Development. Research and development expenses for the three months ended June 30, 2021 were approximately
General and Administrative. General and administrative expenses for the three months ended June 30, 2021 were
Loss from Operations. Loss from operations for the three months ended June 30, 2021 was
Cash and Equivalents. As of June 30, 2021, Armata held approximately
As of August 12, 2021, there were approximately 24.9 million shares of 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 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, and statements related to the timing and results of clinical trials, including the anticipated results of clinical trials of AP-PA02 and AP-SA02, and Armata's ability to develop new products based on bacteriophages and synthetic phages. 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; 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 ongoing outbreak of COVID-19. 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 18, 2021, 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:
Steve Martin
Armata Pharmaceuticals, Inc.
ir@armatapharma.com
858-800-2492
Investor Relations:
Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
212-915-2569
Armata Pharmaceuticals, Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
June 30, 2021 | December 31, 2020 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 17,536,000 | $ | 9,649,000 | ||
Award receivable | 1,168,000 | 561,000 | ||||
Prepaids and other current assets | 1,005,000 | 636,000 | ||||
Total current assets | 19,709,000 | 10,846,000 | ||||
Property and equipment, net | 12,739,000 | 12,837,000 | ||||
Other long term assets | 2,087,000 | 2,087,000 | ||||
Intangible assets, net | 13,746,000 | 13,746,000 | ||||
Total assets | $ | 48,281,000 | $ | 39,516,000 | ||
Liabilities and stockholders' equity | ||||||
Total current liabilities | $ | 5,903,000 | $ | 6,705,000 | ||
Long term liabilities | 10,682,000 | 10,877,000 | ||||
Deferred tax liability | 3,077,000 | 3,077,000 | ||||
Total liabilities | 19,662,000 | 20,659,000 | ||||
Stockholders' equity | 28,619,000 | 18,857,000 | ||||
Total liabilities and stockholders' equity | $ | 48,281,000 | $ | 39,516,000 | ||
Armata Pharmaceuticals, Inc. | ||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenue | $ | 1,168,000 | $ | 31,000 | 2,234,000 | 31,000 | ||||||
Operating expenses: | ||||||||||||
Research and development | 5,225,000 | 2,648,000 | $ | 9,575,000 | $ | 5,398,000 | ||||||
General and administrative | 2,139,000 | 1,973,000 | 4,290,000 | 4,144,000 | ||||||||
Total operating expenses | 7,364,000 | 4,621,000 | 13,865,000 | 9,542,000 | ||||||||
Loss from operations | (6,196,000) | (4,590,000) | (11,631,000) | (9,511,000) | ||||||||
Other income (expense): | ||||||||||||
Other income (expense), net | 2,000 | (120,000) | (58,000) | (277,000) | ||||||||
Total other income (expense), net | 2,000 | (120,000) | $ | (58,000) | (277,000) | |||||||
Loss before income taxes and Net Loss | $ | (6,194,000) | $ | (4,710,000) | (11,689,000) | $ | (9,788,000) | |||||
Net loss per share, basic and diluted | $ | (0.25) | $ | (0.26) | (0.52) | $ | (0.68) | |||||
Weighted average shares outstanding, basic and diluted | 24,762,818 | 18,347,051 | 22,622,477 | 14,399,399 | ||||||||
Armata Pharmaceuticals, Inc. | |||||||
Condensed Consolidated Statement of Cash Flows | |||||||
Six Months Ended June 30, | |||||||
2021 | 2020 | ||||||
Operating activities: | |||||||
Net loss | $ | (11,689,000) | $ | (9,788,000) | |||
Adjustments required to reconcile net loss to net cash used in operating activities: | |||||||
Change in fair value of derivative liabilities | |||||||
Stock-based compensation | 1,749,000 | 1,950,000 | |||||
Depreciation | 578,000 | 575,000 | |||||
Non-cash interest expense | 62,000 | 300,000 | |||||
Payment of accreted interest for deferred consideration for asset acquisition | (586,000) | - | |||||
Changes in operating assets and liabilities, net | (127,000) | (1,125,000) | |||||
Net cash used in operating activities | (10,013,000) | (8,088,000) | |||||
Investing activities: | |||||||
Purchases of property and equipment, net | (494,000) | (377,000) | |||||
Net cash used in investing activities | (494,000) | (377,000) | |||||
Financing activities: | |||||||
Principal payment of deferred consideration for asset acquisition | (1,414,000) | (1,000,000) | |||||
Proceeds from Paycheck Protection Program Loan | - | 718,000 | |||||
Proceeds from warrant and option exercises | 445,000 | 81,000 | |||||
Procees from private placement financing, net | 19,363,000 | 22,919,000 | |||||
Net cash provided by (used in) financing activities | 18,394,000 | 22,718,000 | |||||
Net increase (decrease) in cash and cash equivalents | 7,887,000 | 14,253,000 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 10,849,000 | 6,733,000 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 18,736,000 | $ | 20,986,000 | |||
Reconciliation of Cash and cash equivalents: | Six Months Ended June 30, | ||||||
2021 | 2020 | ||||||
Cash and cash equivalents | $ | 17,536,000 | $ | 19,786,000 | |||
Restricted cash | 1,200,000 | 1,200,000 | |||||
Cash, cash equivalents and restricted cash | $ | 18,736,000 | $ | 20,986,000 | |||
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SOURCE Armata Pharmaceuticals, Inc.
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