Armata Pharmaceuticals Announces Second Quarter 2020 Results and Provides General Corporate Update
MARINA DEL REY, Calif., Aug. 13, 2020 /PRNewswire/ -- Armata Pharmaceuticals, Inc. (NYSE American: ARMP) ("Armata" or the "Company"), a clinical-stage biotechnology company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant and difficult-to-treat bacterial infections, today announced results for the second quarter of 2020 and provided a corporate and clinical update.
During the quarter, the Company announced a $15 million award from the U.S. Department of Defense, through the Medical Technology Enterprise Consortium (MTEC) with funding from the Defense Health Agency and Joint Warfighter Medical Research Program, for a three-year program to advance development of AP-SA02 in S. aureus bacteremia infections. Armata will use the award to partially fund a Phase 1b/2 randomized, double-blind, placebo-controlled, dose escalation clinical study. The Company expects to initiate the clinical trial next year.
"The highlight of the second quarter was our announcement of the $15 million award from the U.S. Department of Defense to advance AP-SA02, which we are developing as a potential treatment for Staphylococcus aureus bacteremia infections. In an ongoing effort to prudently manage our cash, we sought non-dilutive third-party funding to help advance this program, and we exceeded the amount that we were initially targeting. We are in the process of developing an efficient clinical plan for this promising candidate, and this award will now allow us to initiate a Phase 1b/2 clinical trial as expeditiously as possible," said Todd R. Patrick, Chief Executive Officer of Armata. "With respect to our lead program, subject to potential delays related to COVID-19, we believe we are on track to initiate our Phase 1b/2a clinical trial of AP-PA02 in Pseudomonas aeruginosa infections in cystic fibrosis patients later this year. Finally, we remain well capitalized with $19.8 million of cash on our balance sheet as of June 30, 2020."
Anticipated 2020 and 2021 Milestones:
-- Initiate a Phase 1b/2a clinical trial evaluating AP-PA02 as a potential
treatment for Pseudomonas aeruginosa infections by the end of 2020
-- Initiate a Phase 1b/2 clinical trial evaluating AP-SA02 as a potential
treatment for Staphylococcus aureus bacteremia infections in 2021
-- Continue to screen pathogens against the Company's proprietary phage
library to identify additional high-quality bacteriophage product
candidates and expand the pipeline.
Second Quarter Financial Results
Research and Development. Research and development expenses for the three months ended June 30, 2020 were approximately $2.6 million as compared to $3.1 million for the comparable period in 2019.
General and Administrative. General and administrative expenses for the three months ended June 30, 2020 were $2.0 million as compared to $2.1 million for the comparable period in 2019.
Loss from Operations. Loss from operations for the three months ended June 30, 2020 was $4.7 million as compared to $4.2 million for the comparable period in 2019.
Cash and Equivalents. As of June 30, 2020, Armata held $19.8 million of unrestricted cash and cash equivalents, as compared to $6.0 million as of December 31, 2019. Management believes the Company's existing resources will be sufficient to fund planned operations through at least the first half of 2021.
As of August 13, 2020, there were approximately 18.7 million shares of common stock outstanding.
About Armata Pharmaceuticals, Inc.
Armata is a clinical-stage biotechnology company focused on the development of precisely targeted 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 ability to meet expected milestones, expand its pipeline, and pursue additional potential partnerships, the expected use of proceeds from the $15 million grant, the expected impact of the COVID-19 pandemic on the Company's operations, 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 initiation of clinical trials of AP-PA02 and AP-SA02, Armata's ability to develop new products based on bacteriophages and synthetic phages, Armata's expectations for performance of Armata's therapeutic candidates based on Armata's recent nonclinical work, and Armata's ability to continue to screen pathogens against Armata's proprietary phage library to identify additional high-quality bacteriophage product candidates and expand the pipeline. 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 recent 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 19, 2020, 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:
Steve Martin
Armata Pharmaceuticals, Inc.
ir@armatapharma.com
858-800-2492
Investor Relations:
Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
212-915-2569
Armata Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
June 30, 2020 December 31, 2019
Assets
Cash and cash equivalents $
19,786,000 $
6,033,000
Prepaids and other current assets 898,000 622,000
Total current assets 20,684,000 6,655,000
Property and equipment, net 12,952,000 4,214,000
Other long term assets 2,079,000 836,000
Intangible assets, net 13,746,000 13,746,000
Total assets $
49,461,000 $
25,451,000
Liabilities and stockholders' equity
Total current liabilities $
5,207,000 $
4,879,000
Long term liabilities 11,539,000 2,902,000
Deferred tax liability 3,077,000 3,077,000
Total liabilities 19,823,000 10,858,000
Stockholders' equity 29,638,000 14,593,000
Total liabilities and stockholders' equity $
49,461,000 $
25,451,000
Armata Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Grant Revenue $
31,000
$ $
31,000
$
Operating expenses:
Research and development 2,648,000 3,076,000 5,398,000 5,137,000
General and administrative 1,973,000 2,082,000 4,144,000 3,462,000
Loss from operations 4,590,000 5,158,000 9,511,000 8,599,000
Other income (expense):
Change in fair value of derivative liabilities 1,157,000 1,117,000
Other income (expense), net (120,000) (198,000) (277,000) (456,000)
Total other income (expense), net (120,000) 959,000 (277,000) 661,000
Loss before income taxes and Net Loss $
(4,710,000) $
(4,199,000) $
(9,788,000) $
(7,938,000)
Net loss per share, basic $
(0.26) $
(0.56) $
(0.68) $
(1.30)
Weighted average shares outstanding, basic 18,347,051 7,505,097 14,399,399 6,086,816
Net loss per share, diluted $
(0.26) $
(0.69) $
(0.68) $
(1.38)
Weighted average shares outstanding, diluted 18,347,051 7,720,977 14,399,399 6,452,413
Armata Pharmaceuticals, Inc.
Condensed Consolidated Statement of Cash Flows
Six Months Ended June 30,
2020 2019
Operating activities:
Net loss $
(9,788,000) $
(7,938,000)
Adjustments required to reconcile net loss to net cash used in
operating activities:
Change in fair value of derivative liabilities (1,117,000)
Stock-based compensation 1,950,000 725,000
Depreciation 575,000 683,000
Non-cash interest expense 300,000 536,000
Changes in operating assets and liabilities, net (1,125,000) (1,175,000)
Net cash used in operating activities (8,088,000) (8,286,000)
Investing activities:
Purchases of property and equipment, net (377,000) (268,000)
Cash acquired in reverse merger transaction 3,008,000
Net cash used in investing activities (377,000) 2,740,000
Financing activities:
Payment of deferred consideration for asset acquisition (1,000,000) (1,000,000)
Proceeds from sale of common stock, net of offering costs 9,975,000
Proceeds from private placement financing, net of financing 22,919,000
costs
Proceeds from exercise of warrants 81,000
Proceeds from PPP Loan 718,000
Net cash provided by (used in) financing activities 22,718,000 8,975,000
Net increase (decrease) in cash and cash equivalents 14,253,000 3,429,000
Cash, cash equivalents and restricted cash, beginning of period 6,733,000 10,463,000
Cash, cash equivalents and restricted cash, end of period $
20,986,000 $
13,892,000
Reconciliation of Cash and cash equivalents: Six Months Ended June 30,
2020 2019
Cash and cash equivalents $
19,786,000 $
13,192,000
Restricted cash 1,200,000 700,000
Cash, cash equivalents and restricted cash $
20,986,000 $
13,892,000
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SOURCE Armata Pharmaceuticals, Inc.
