Armata Pharmaceuticals Reports Q1 2024 Results and Corporate Update

Armata Pharmaceuticals, Inc., a biotechnology firm dedicated to developing bacteriophage therapeutics for combating antibiotic-resistant bacterial infections, has reported its financial results for the first quarter ending March 31, 2024, and shared updates on its corporate activities.

Key Developments in the First Quarter of 2024:
Armata secured a $35 million credit agreement with Innoviva Strategic Opportunities LLC, a subsidiary of its principal shareholder Innoviva. This agreement is aimed at supporting ongoing and future clinical programs. The company is advancing two major clinical trials: the Phase 2a diSArm study of intravenous AP-SA02, targeting Staphylococcus aureus bacteremia, and the Phase 2 Tailwind study of inhaled AP-PA02 for patients with non-cystic fibrosis bronchiectasis (NCFB) suffering from chronic Pseudomonas aeruginosa infection.

Armata has made significant progress in the field of bacteriophage science through various presentations and publications. Notably, the company presented at the 6th Annual Bacteriophage Therapy Summit in February 2024. Additionally, they are preparing to submit the manuscript of the SWARM-P.a. clinical trial results to a peer-reviewed journal in the second quarter of 2024.

The company is also nearing the completion of an advanced biologics manufacturing facility, which includes five cGMP clean rooms and automated fill and finish suites. This facility is expected to be fully operational by mid-2024, positioning Armata to support late-stage clinical trials and commercial production effectively.

CEO Dr. Deborah Birx expressed satisfaction with the progress of the clinical programs, indicating that pivotal studies are planned for 2025. She highlighted the advancement of the AP-PA02 and AP-SA02 programs, with the latter anticipated to complete its Phase 2a study within the year. This study aims to determine the optimal dose for a larger definitive study.

Financial Overview for the First Quarter of 2024:
Armata reported grant revenue of approximately $1 million, primarily from the Medical Technology Enterprise Consortium for the AP-SA02 program. This is an increase from the $0.8 million reported in the first quarter of 2023.

Research and development expenses were about $8 million, a decrease from the $9.6 million spent during the same period in 2023. This reduction reflects continued investment in the primary development programs.

General and administrative expenses rose to $3.2 million from $2.5 million in the first quarter of 2023, attributed to increased professional services and overhead costs.

The company's operating loss for the quarter was $10.2 million, compared to an $11.3 million loss in the previous year. As of March 31, 2024, Armata held $37.9 million in unrestricted cash, up from $13.5 million at the end of 2023. This increase is primarily due to the $35 million loan from Innoviva, which has an interest rate of 14% and matures on June 4, 2025.

As of May 7, 2024, Armata had approximately 36.1 million common shares outstanding.

About Armata Pharmaceuticals:
Armata Pharmaceuticals is a clinical-stage biotech firm specializing in bacteriophage therapeutics to treat antibiotic-resistant bacterial infections. The company leverages its proprietary technology to develop a range of phage candidates for pathogens such as Pseudomonas aeruginosa and Staphylococcus aureus. Armata’s capability spans from research and development to in-house cGMP manufacturing, positioning it as a leader in the development of phage-based therapies.