ARMATA PHARMACEUTICALS, INC. Armata Pharmaceuticals Announces Second Quarter 2022 Results and Provides Corporate Update
MARINA DEL REY, Calif., August 11, 2022 -- 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 financial results for its second quarter 2022 and provided a corporate update.
Second Quarter 2022 and Recent Developments:
| · | AP-PA02 advancing through final MAD cohort of SWARM-P.a. trial |
| · | Phase 2 Tailwind study of AP-PA02 in non-CF bronchiectasis (NCFB) initiated |
| · | AP-SA02 Phase 1b/2a Staphylococcus aureus bacteremia study ('diSArm') actively enrolling |
| · | Pipeline expansion continues with IND approval for AP-SA02 in prosthetic joint infection |
| · | Engineered, second generation AP-PA02 therapeutic candidate selected |
| · | Continued investment in manufacturing capabilities |
"During the second quarter, we continued to advance our portfolio of innovative bacteriophage therapeutics. We now have four approved INDs, positioning Armata to robustly evaluate bacteriophage effectiveness in difficult-to-treat infections," stated Dr. Brian Varnum, Chief Executive Officer of Armata. "At the same time, we continued to advance the science of bacteriophage. Armata's synthetic biologists have engineered a second-generation AP-PA02 product with improved pharmacological properties. Additionally, significant improvements in manufacturing processes have resulted in improved yield and purity, with methods that are readily scalable. These methods lay the groundwork for the next phase of Armata's growth as we build out our new 56,000 square foot facility."
Second Quarter 2022 Financial Results:
Grant Revenue. The Company recognized grant revenue of approximately $1.9 million for the three months ended June 30, 2022, which represents Medical Technology Enterprise Consortium's ("MTEC") 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 administered by the U.S. Department of Defense and the Defense Health Agency and Joint Warfighter Medical Research Program. The Company recognized approximately $1.2 million of revenue in the comparable period in 2021.
Research and Development. Research and development expenses for the three months ended June 30, 2022, were approximately $9.0 million as compared to approximately $5.2 million for the comparable period in 2021. The Company continues to invest in clinical trial and personnel related expenses associated with its primary development programs.
General and Administrative. General and administrative expenses for the three months ended June 30, 2022, were approximately $2.1 million as compared to approximately $2.1 million for the comparable period in 2021.
Loss from Operations. Loss from operations for the three months ended June 30, 2022, was $(9.2) million as compared to a loss from operations of approximately $(6.2) million for the comparable period in 2021.
Cash and Equivalents. As of June 30, 2022, Armata held approximately $37.0 million of unrestricted cash and cash equivalents, as compared to $10.3 million as of December 31, 2021.
As of August 9, 2022, there were approximately 36.1 million shares of the Company's 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, Armata's expectations regarding receiving future grant funding and statements related to the timing and results of clinical trials, including the anticipated initiation and advancement 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 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 any delays or adverse events within, or outside of, Armata's control, caused by the COVID-19 pandemic. 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 17, 2022, 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.
Media Contacts:
At Armata:
Pierre Kyme
Armata Pharmaceuticals, Inc.
ir@armatapharma.com
310-665-2928
Investor Relations:
Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
212-915-2569
| Armata Pharmaceuticals, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
|
June 30, 2022 |
December 31, 2021 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 36,978,000 | $ | 10,288,000 | ||||
| Awards receivable | 1,883,000 | 2,989,000 | ||||||
| Prepaids and other current assets | 2,445,000 | 1,718,000 | ||||||
| Total current assets | 41,306,000 | 14,995,000 | ||||||
| Property and equipment, net | 38,277,000 | 38,072,000 | ||||||
| Other long term assets | 7,655,000 | 2,955,000 | ||||||
| Intangible assets, net | 13,746,000 | 13,746,000 | ||||||
| Total assets | $ | 100,984,000 | $ | 69,768,000 | ||||
| Liabilities and stockholders' equity | ||||||||
| Total current liabilities | $ | 7,383,000 | $ | 4,814,000 | ||||
| Long term liabilities | 37,233,000 | 36,480,000 | ||||||
| Deferred tax liability | 3,077,000 | 3,077,000 | ||||||
| Total liabilities | 47,693,000 | 44,371,000 | ||||||
| Stockholders' equity | 53,291,000 | 25,397,000 | ||||||
| Total liabilities and stockholders' equity | $ | 100,984,000 | $ | 69,768,000 |
| Armata Pharmaceuticals, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Grant Revenue | $ | 1,883,000 | $ | 1,168,000 | $ | 3,119,000 | 2,234,000 | |||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 9,020,000 | $ | 5,225,000 | $ | 17,048,000 | $ | 9,575,000 | ||||||||
| General and administrative | 2,083,000 | 2,139,000 | 4,066,000 | 4,290,000 | ||||||||||||
| Total operating expenses | 11,103,000 | 7,364,000 | 21,114,000 | 13,865,000 | ||||||||||||
| Loss from operations | (9,220,000 | ) | (6,196,000 | ) | (17,995,000 | ) | (11,631,000 | ) | ||||||||
| Other income (expense), net | 5,000 | 2,000 | 6,000 | (58,000 | ) | |||||||||||
| Loss before income taxes and Net Loss | $ | (9,215,000 | ) | $ | (6,194,000 | ) | $ | (17,989,000 | ) | $ | (11,689,000 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.26 | ) | $ | (0.25 | ) | $ | (0.55 | ) | $ | (0.52 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 35,999,642 | 24,762,818 | 32,517,416 | 22,622,477 |
| Armata Pharmaceuticals, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| Six Months Ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (17,989,000 | ) | $ | (11,689,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 1,442,000 | 1,749,000 | ||||||
| Depreciation | 421,000 | 578,000 | ||||||
| Payment of accreted interest for deferred consideration for asset acquisition | - | (586,000 | ) | |||||
| Non-cash interest expense | - | 62,000 | ||||||
| Changes in operating assets and liabilities, net | 4,463,000 | (127,000 | ) | |||||
| Net cash used in operating activities | (11,663,000 | ) | (10,013,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment, net | (1,372,000 | ) | (494,000 | ) | ||||
| Net cash used in investing activities | (1,372,000 | ) | (494,000 | ) | ||||
| Financing activities: | ||||||||
| Payment of deferred consideration for asset acquisition | - | (1,414,000 | ) | |||||
| Proceeds from sale of common stock, net of offering costs | 44,414,000 | 19,363,000 | ||||||
| Proceeds from exercise of warrants and stock options | 71,000 | 445,000 | ||||||
| Net cash provided by (used in) financing activities | 44,485,000 | 18,394,000 | ||||||
| Net increase (decrease) in cash and cash equivalents | 31,450,000 | 7,887,000 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 11,488,000 | 10,849,000 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 42,938,000 | $ | 18,736,000 |
| Reconciliation of Cash and cash equivalents: | Six Months Ended June 30, | |||||||
| 2022 | 2021 | |||||||
| Cash and cash equivalents | $ | 36,978,000 | $ | 17,536,000 | ||||
| Restricted cash | 5,960,000 | 1,200,000 | ||||||
| Cash, cash equivalents and restricted cash | $ | 42,938,000 | $ | 18,736,000 |
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Disclaimer
Armata Pharmaceuticals Inc. published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 20:41:33 UTC.
