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Armata Pharmaceuticals Announces Third Quarter 2022 Results and Provides Corporate Update

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Armata Pharmaceuticals (ARMP) reported its third quarter 2022 financial results, highlighting progress in clinical trials for its bacteriophage therapeutics. Key developments include the final enrollment phase of the SWARM-P.a. study and advancements in the AP-SA02 programs. The company recognized $1.3 million in grant revenue and expects $16.3 million in total funding from MTEC. R&D expenses rose to $8.4 million, while losses from operations increased to $(8.6) million. The company holds $25.4 million in cash as of September 30, 2022.

Positive
  • Significant progress in SWARM-P.a. study with final enrollment anticipated in Q4 2022.
  • Received $1.3 million in grant revenue for AP-SA02 program.
  • Anticipates total grant funding of $16.3 million from MTEC.
  • Regulatory approvals achieved for clinical sites in Australia, potentially speeding up enrollment.
Negative
  • Increased R&D expenses of $8.4 million from $5.6 million year-over-year.
  • Loss from operations grew to $(8.6) million compared to $(6.1) million in 2021.

MARINA DEL REY, Calif., Nov. 9, 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 third quarter 2022 and provided a corporate update.  

Third Quarter 2022 and Recent Developments:

  • SWARM-P.a. enrolling final Phase 2 MAD cohort evaluating AP-PA02 in cystic fibrosis
  • AP-PA02 Phase 2 non-cystic fibrosis bronchiectasis (NCFB) study progressing toward site activation and first patient dosed
  • AP-SA02 bacteremia study progressing through Phase 1b cohort
  • AP-SA02 prosthetic joint infection study advancing through start-up activities

"During the third quarter, we have made significant progress in the SWARM-P.a. study. We now anticipate enrolling the last subject in the fourth quarter with top-line data expected in early 2023," stated Dr. Brian Varnum, Chief Executive Officer of Armata. "Concurrently, we made progress with our second lead program, AP-SA02 in Staphylococcus aureus bacteremia, enrolling in the Phase 1b portion of the diSArm study while continuing to expand the study reach in the United States and abroad. Importantly, we achieved regulatory approvals required to activate clinical sites in Australia, which we believe may accelerate enrollment in this difficult-to-treat patient population. Finally, our pipeline expansion activities continue to progress, with ongoing site activation for the Tailwind study evaluating AP-PA02 in non-cystic fibrosis bronchiectasis, and study start-up activities for AP-SA02 in prosthetic joint infections."

Third Quarter 2022 Financial Results

Grant Revenue. The Company recognized grant revenue of approximately $1.3 million for the three months ended September 30, 2022, which represents Medical Technology Enterprise Consortium ("MTEC")'s share of the costs incurred for the Company's AP-SA02 program for the treatment of Staphylococcus aureus bacteremia. The Company expects to receive $16.3 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 $1.3 million of revenue in the comparable period in 2021.

Research and Development. Research and development expenses for the three months ended September 30, 2022, were approximately $8.4 million as compared to approximately $5.6 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 September 30, 2022, were approximately $1.6 million as compared to approximately $1.8 million for the comparable period in 2021.

Loss from Operations. Loss from operations for the three months ended September 30, 2022, was $(8.6) million as compared to a loss from operations of approximately $(6.1) million for the comparable period in 2021.

Cash and Equivalents. As of September 30, 2022, Armata held approximately $25.4 million of unrestricted cash and cash equivalents, as compared to $10.3 million as of December 31, 2021.  

As of November 4, 2022, there were approximately 36.1 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 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, 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










September 30, 2022


December 31, 2021







Assets







  Cash and cash equivalents


$

25,382,000


$

10,288,000

  Awards receivable



1,867,000



2,989,000

  Prepaids and other current assets



5,996,000



1,718,000

Total current assets



33,245,000



14,995,000

Property and equipment, net



38,977,000



38,072,000

Other long term assets



6,913,000



2,955,000

Intangible assets, net



13,746,000



13,746,000

Total assets


$

92,881,000


$

69,768,000








Liabilities and stockholders' equity







Total current liabilities


$

7,004,000


$

4,814,000

Long term liabilities



37,233,000



36,480,000

Deferred tax liability



3,077,000



3,077,000

Total liabilities



47,304,000



44,371,000

Stockholders' equity



45,577,000



25,397,000

Total liabilities and stockholders' equity


$

92,881,000


$

69,768,000








 

Armata Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations
















Three Months Ended September 30,


Nine Months Ended September 30,



2022


2021


2022


2021



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)














Grant Revenue


$

1,338,000


$

1,251,000


$

4,457,000


$

3,485,000

Operating expenses:













Research and development



8,400,000



5,626,000



25,448,000



15,201,000

General and administrative



1,561,000



1,768,000



5,627,000



6,058,000

Total operating expenses



9,961,000



7,394,000



31,075,000



21,259,000

Loss from operations



(8,623,000)



(6,143,000)



(26,618,000)



(17,774,000)

Other income (expense), net



9,000



(2,000)



15,000



(60,000)

Loss before income taxes and Net Loss


$

(8,614,000)


$

(5,419,000)


$

(26,603,000)


$

(17,108,000)

Net loss per share, basic and diluted


$

(0.24)


$

(0.21)


$

(0.79)


$

(0.73)

Weighted average shares outstanding, basic and diluted



36,038,686



24,820,233



33,704,071



23,363,113














 

Armata Pharmaceuticals, Inc.


Condensed Consolidated Statements of Cash Flows












Nine Months Ended September 30,




2022


2021








Operating activities:








Net loss


$

(26,603,000)


$

(17,108,000)


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








Stock-based compensation



2,288,000



2,218,000


Depreciation



647,000



892,000


Payment of accreted interest for deferred consideration for asset acquisition



-



(586,000)


Non-cash interest expense



-



60,000


Gain on Extinguishment of PPP loan



-



(722,000)


Changes in operating assets and liabilities, net



1,672,000



(269,000)


Net cash used in operating activities



(21,996,000)



(14,977,000)


Investing activities:








Purchases of property and equipment, net



(2,666,000)



(1,076,000)


Net cash used in investing activities



(2,666,000)



(1,076,000)


Financing activities:








Payment of deferred consideration for asset acquisition



-



(1,414,000)


Proceeds from sale of common stock, net of offering costs



44,391,000



19,363,000


Proceeds from exercise of warrants and stock options



125,000



531,000


Net cash provided by (used in) financing activities



44,516,000



18,480,000


Net increase (decrease) in cash and cash equivalents



19,854,000



2,427,000


Cash, cash equivalents and restricted cash, beginning of period



11,488,000



10,849,000


Cash, cash equivalents and restricted cash, end of period


$

31,342,000


$

13,276,000


























Reconciliation of Cash and cash equivalents:



Nine Months Ended September 30,




2022


2021

Cash and cash equivalents


$

25,382,000


$

12,076,000


Restricted cash



5,960,000



1,200,000


Cash, cash equivalents and restricted cash


$

31,342,000


$

13,276,000










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SOURCE Armata Pharmaceuticals, Inc.

FAQ

What are the financial results for Armata Pharmaceuticals in Q3 2022?

Armata Pharmaceuticals reported a loss from operations of $(8.6) million and recognized $1.3 million in grant revenue.

What progress has Armata Pharmaceuticals made in its clinical trials?

The company announced significant advances in its SWARM-P.a. and AP-SA02 studies, with final enrollment expected in Q4 2022.

How much cash does Armata Pharmaceuticals have as of September 30, 2022?

Armata holds approximately $25.4 million in cash and cash equivalents as of September 30, 2022.

What is Armata's expected grant funding amount?

Armata Pharmaceuticals anticipates receiving $16.3 million in total grant funding from MTEC.

Armata Pharmaceuticals, Inc.

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Biotechnology
Biological Products, (no Disgnostic Substances)
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