Full Press Release Details
Armata Pharmaceuticals Announces
First Quarter Results and Provides
General Corporate Update
Company earns $750,000 milestone payment related
MARINA DEL REY, Calif., May 13, 2021 -- 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 first
quarter of 2021 and provided a corporate update.
First Quarter 2021 and Recent Highlights:
"Despite the risks COVID-19 present to people
with chronic lung infections, we are making progress with our SWARM-P.a. study as the pandemic's negative impact on trial
operations continues to improve," stated Todd R. Patrick, Chief Executive Officer of Armata. "As we have noted previously,
the study is being funded in part by a Therapeutics Development Award from the CF Foundation and we are grateful for their support. At
the same time, we continue to engage in IND-enabling activities in support of a Phase 1b/2 trial of our second candidate, AP-SA02, in
Staphylococcus aureus bacteremia, which would give us line-of-sight to two programs in the clinic.
"Beyond these programs, we are working toward
the initiation of additional clinical trials assessing our phage-based therapeutic candidates in other difficult to treat indications,
including non-cystic fibrosis bronchiectasis, pneumonia and prosthetic joint infection.
"With our recent financing, we believe we
are well funded to achieve multiple pre-clinical and clinical milestones over the next two years," Mr. Patrick concluded.
Anticipated 2021 and 2022 Milestones:
First Quarter Financial Results
Grant Revenue. The Company recognized grant
revenue of $1.1 million for the three months ended March 31, 2021, 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 will receive a $15.0 million grant award from MTEC over a three-year period administered by the U.S. Department of Defense
with funding from the Defense Health Agency and Joint Warfighter Medical Research Program. The Company recognized no grant revenue in
the comparable period in 2020.
Research and Development. Research and
development expenses for the three months ended March 31, 2021 were approximately $4.4 million as compared to $2.8 million for the comparable
period in 2020. The increase was primarily related to the increase in clinical trial and personnel related expenses.
General and Administrative. General and
administrative expenses for the three months ended March 31, 2021 and 2020 were $2.2 million in both years.
Loss from Operations. Loss from operations
for the three months ended March 31, 2021 was $(5.4) million as compared to a loss from operations of $(4.9) million for the comparable
Cash and Equivalents. As of March 31, 2021,
Armata held approximately $22.5 million of unrestricted cash and cash equivalents, as compared to $9.7 million as of December 31, 2020.
During the first quarter, Armata completed a $20 million private placement financing with Innoviva Strategic Opportunities LLC, a wholly-owned
subsidiary of Innoviva.
As of May 13, 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 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 results 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; 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.
Armata Pharmaceuticals, Inc.
LifeSci Advisors, LLC
| Armata Pharmaceuticals, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| March 31, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 22,455,000 | $ | 9,649,000 | ||||
| Award receivable | 1,125,000 | 561,000 | ||||||
| Prepaids and other current assets | 459,000 | 636,000 | ||||||
| Total current assets | 24,039,000 | 10,846,000 | ||||||
| Property and equipment, net | 12,811,000 | 12,837,000 | ||||||
| Other long term assets | 2,249,000 | 2,087,000 | ||||||
| Intangible assets, net | 13,746,000 | 13,746,000 | ||||||
| Total assets | $ | 52,845,000 | $ | 39,516,000 | ||||
| Liabilities and stockholders' equity | ||||||||
| Total current liabilities | $ | 4,981,000 | $ | 6,705,000 | ||||
| Long term liabilities | 10,775,000 | 10,877,000 | ||||||
| Deferred tax liability | 3,077,000 | 3,077,000 | ||||||
| Total liabilities | 18,833,000 | 20,659,000 | ||||||
| Stockholders' equity | 34,012,000 | 18,857,000 | ||||||
| Total liabilities and stockholders' equity | $ | 52,845,000 | $ | 39,516,000 |
Armata Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenue | $ | 1,066,000 | $ | - | ||||
| Operating expenses: | ||||||||
| Research and development | 4,350,000 | 2,750,000 | ||||||
| General and administrative | 2,151,000 | 2,171,000 | ||||||
| Total operating expenses | 6,501,000 | 4,921,000 | ||||||
| Loss from operations | (5,435,000 | ) | (4,921,000 | ) | ||||
| Other income (expense), net | (60,000 | ) | (157,000 | ) | ||||
| Loss before income taxes and Net Loss | $ | (5,495,000 | ) | $ | (5,078,000 | ) | ||
| Net loss per share, basic and diluted | $ | (0.27 | ) | $ | (0.49 | ) | ||
| Weighted average shares outstanding, basic and diluted | 20,458,355 | 10,451,746 |
| Armata Pharmaceuticals, Inc. | ||||||||
| Condensed Consolidated Statement of Cash Flows | ||||||||
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (5,495,000 | ) | $ | (5,078,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 842,000 | 1,044,000 | ||||||
| Depreciation | 281,000 | 295,000 | ||||||
| Non-cash interest expense | 62,000 | 159,000 | ||||||
| Payment of accreted interest for deferred consideration for asset acquisition | (586,000 | ) | - | |||||
| Changes in operating assets and liabilities, net | (579,000 | ) | (652,000 | ) | ||||
| Net cash used in operating activities | (5,475,000 | ) | (4,232,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment, net | (298,000 | ) | (104,000 | ) | ||||
| Net cash used in investing activities | (298,000 | ) | (104,000 | ) | ||||
| Financing activities: | ||||||||
| Principal payment of deferred consideration for asset acquisition | (1,414,000 | ) | (1,000,000 | ) | ||||
| Proceeds from warrant and option exercises | 445,000 | 81,000 | ||||||
| Procees from private placement financing, net | 19,548,000 | 23,331,000 | ||||||
| Net cash provided by (used in) financing activities | 18,579,000 | 22,412,000 | ||||||
| Net increase (decrease) in cash and cash equivalents | 12,806,000 | 18,076,000 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 10,849,000 | 6,733,000 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 23,655,000 | $ | 24,809,000 |
| Reconciliation of Cash and cash equivalents: | Three Months Ended March 31, | |||||||
| 2021 | 2020 | |||||||
| Cash and cash equivalents | $ | 22,455,000 | $ | 24,209,000 | ||||
| Restricted cash | 1,200,000 | 600,000 | ||||||
| Cash, cash equivalents and restricted cash | $ | 23,655,000 | $ | 24,809,000 |