Full Press Release Details
Armata Pharmaceuticals Announces
Second Quarter Results and Provides
General Corporate Update
Continues to advance AP-PA02 through Phase 1b/2a
clinical trial as a potential treatment for cystic fibrosis patients with chronic Pseudomonas aeruginosa
Announced that Todd R. Patrick, CEO, has retired
from the Company. Brian Varnum, PhD, former President and Chief Development Officer, has been appointed the Company's new CEO
MARINA DEL REY, Calif., August 12, 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 second
quarter of 2021 and provided a corporate update.
Second Quarter 2021 and Recent Developments:
"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:
Second Quarter 2021 Financial Results
Revenue. The Company recognized grant revenue of $1.2 million for the three months ended June 30, 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 expects to receive $15.0 million in grant funding from MTEC over a three-year
period administered by the U.S. Department of Defense and the Defense Health Agency and Joint Warfighter Medical Research Program. The
Company recognized $31,000 of revenue in the comparable period in 2020.
and Development. Research and development expenses for the three months ended June 30, 2021 were approximately $5.2 million
as compared to $2.6 million for the comparable period in 2020. The increase was primarily related to the increase in clinical trial and
personnel related expenses.
and Administrative. General and administrative expenses for the three months ended June 30, 2021 were $2.1 million as compared
to $2.0 million for the comparable period in 2020.
from Operations. Loss from operations for the three months ended June 30, 2021 was $(6.2) million as compared to a loss from
operations of $(4.6) million for the comparable period in 2020.
and Equivalents. As of June 30, 2021, Armata held approximately $17.5 million of unrestricted cash and cash equivalents, as
compared to $9.7 million as of December 31, 2020.
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.
Armata Pharmaceuticals, Inc.
LifeSci Advisors, LLC
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 |