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Armata Pharmaceuticals Announces $10 Million Secured Credit Agreement with Innoviva Proceeds to be used to continue to advance development of Armata's phage product candidates

Key Takeaway: Armata Pharmaceuticals has secured a $10 million credit agreement with Innoviva to support the development of its phage product candidates, including AP-PA02 and AP-SA02. This financing is particularly vital as it positions the company to advance its Phase 1b/2a trial for AP-SA02, planned for acute Staphylococcus aureus bacteremia. Additionally, Armata aims to prepare for an end-of-Phase 2 meeting with the FDA to discuss future clinical studies, while exploring further funding options, including non-dilutive sources. The agreement amends previous credit terms, extending their maturity dates to March 2026.

Market Sentiment Analysis

POSITIVE FACTORS

  • Armata secured a $10 million credit agreement, boosting financial stability.
  • The funding will support the advancement of critical phage therapy candidates.
  • Positive clinical trial outcomes are anticipated for Armata's lead products.

Full Press Release Details

Armata Pharmaceuticals Announces $10 Million
Secured Credit Agreement with Innoviva
Proceeds to be used to continue to advance development
of Armata's phage product candidates
LOS ANGELES, Calif., March 12, 2025 -- 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 that it has entered into a secured credit agreement with Innoviva Strategic Opportunities LLC, a
wholly-owned subsidiary of Innoviva, Inc. (Nasdaq: INVA) (collectively, "Innoviva"), Armata's largest shareholder.
The gross proceeds to be received by the Company at closing are $10 million before deducting transaction-related expenses.
Proceeds from the new financing transaction will
be used to advance the Company's lead therapeutic phage candidates, including AP-PA02 and AP-SA02, which target infections caused
by Pseudomonas aeruginosa and Staphylococcus aureus, respectively.
"Innoviva continues to be an instrumental
partner to Armata in support of our mission, the clinical development of our two lead phage cocktails, AP-PA02 and AP-SA02, and our committed
team," stated Dr. Deborah Birx, Chief Executive Officer of Armata. "This financing will enable Armata to readout its
Phase 1b/2a trial in acute Staphylococcus aureus bacteremia, which represents the first clinical trial for AP-SA02, and to prepare
the Company for an end-of-Phase 2 meeting with the FDA in support of further clinical inquiry including a potential pivotal trial. I would
like to thank the Innoviva team for their continued support. We are continuing to pursue additional sources of funding, including non-dilutive
sources, to support our late-stage clinical trials."
The secured credit agreement provides for a secured
term loan facility in an aggregate amount of $10 million at an interest rate of 14.0% per annum with a maturity date of March 12,
The Company and Innoviva also entered into amendments
to the three credit and security agreements previously entered into, in order to, among other things, extend the maturity dates under
such agreements to March 12, 2026.
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 21, 2024, 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.
Armata Pharmaceuticals, Inc.
LifeSci Advisors, LLC

Frequently Asked Questions

What is the recent financial announcement from Armata Pharmaceuticals?

Armata Pharmaceuticals announced a secured credit agreement for $10 million.

Who are the key partners involved in Armata's funding?

Innoviva, Inc., Armata's largest shareholder, is a key partner in this funding.

What will the $10 million be used for?

The funds will advance Armata's phage product candidates targeting specific infections.

What clinical trial is Armata preparing for?

Armata is preparing for its Phase 1b/2a trial for AP-SA02 in Staphylococcus aureus.

What is Armata focused on developing?

Armata specializes in high-purity bacteriophage therapeutics for antibiotic-resistant infections.

Last updated: Mar 12, 2025