Full Press Release Details
Armata Pharmaceuticals Announces $35 Million
Secured Credit Agreement with Innoviva
Proceeds to be used to continue to advance rigorously
designed clinical trials of Armata's high purity phage-based therapeutic candidates
LOS ANGELES, Calif., March 4, 2024 -- 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 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 $35 million before
deducting transaction-related expenses.
Proceeds from the $35 million 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 has been an invaluable partner
to Armata over the years, and we view this latest financing as further evidence of their confidence in our mission, our clinical development
progress, and our team," stated Dr. Deborah Birx, chief executive officer of Armata. "Our phage candidates are highly differentiated
through their purity and specificity for their bacterial targets, and our cocktail' approach continues to demonstrate a favorable
safety and tolerability profile, allowing us to continue to evaluate higher doses and longer durations of treatment in advance of registrational
Phase 3 trials. This financing will enable Armata to fully enroll both ongoing Phase 2 trials, one in acute bacteremia and one in non-cystic
fibrosis bronchiectasis, and prepare the Company for two pivotal trials. I would like to thank the team at Innoviva for their continued
The credit agreement provides for a secured term
loan facility in an aggregate amount of $35 million at an interest rate of 14.0% per annum with a maturity date of June 4, 2025. Repayment
of the loan is guaranteed by the Company's domestic subsidiaries, and the loan is secured by substantially all of the assets of
the Company and the subsidiary guarantors.
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. Armata is committed to advancing phage with drug development expertise that spans bench to clinic including in-house phage-specific
Forward Looking Statements
This communication contains "forward-looking"
statements, including, without limitation, statements related to Armata's bacteriophage development programs, Armata's ability to set
up or operate R&D and manufacturing facilities, Armata's ability to meet expected milestones, Armata's future success or failure,
Armata's ability to be a leader in the development of phage-based therapeutics, Armata's expected receipt of grant funding, 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 natural bacteriophages and synthetic bacteriophages. 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; that the top line results are indicative of the final data; 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 to refinance, repay or restructure its debt; and whether Armata will incur unforeseen expenses
or liabilities. 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
16, 2023, 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