Armata Pharmaceuticals Announces First Quarter 2025 Results and Provides Corporate Update

Rhea-AI Summary

Armata Pharmaceuticals (NYSE: ARMP) reported its Q1 2025 financial results and corporate updates. The company anticipates topline results from its Phase 1b/2a diSArm study of AP-SA02 for S. aureus bacteremia in H1 2025. Key financial highlights include: revenue of $0.5 million (down from $1.0M in Q1 2024), net loss of $6.5 million ($0.18 per share), and cash position of $11.7 million. The company secured additional funding through a $4.65 million non-dilutive DoD award and a $10 million secured credit agreement with Innoviva. R&D expenses decreased to $5.4 million from $8.0 million year-over-year, while G&A expenses remained relatively stable at $3.3 million.

Positive

• Secured $4.65M non-dilutive funding from DoD through MTEC
• Obtained $10M secured credit agreement with Innoviva
• Extended credit agreements maturity to March 2026
• Reduced net loss to $6.5M from $25M year-over-year
• Improved cash position to $11.7M from $9.3M in December 2024

Negative

• Grant revenue declined 50% to $0.5M from $1.0M year-over-year
• Operating loss of $8.2M despite being lower than previous year
• Increased G&A expenses due to higher personnel and lease costs

Insights

Biotechnology Analyst

Armata reported decreased quarterly loss with expected bacteremia trial results, secured $10M credit and funding from DoD for phage therapy development.

Armata's Q1 2025 results demonstrate both progress and challenges in their bacteriophage development program. The company has completed the Phase 1b/2a diSArm study for AP-SA02, their lead candidate targeting Staphylococcus aureus bacteremia, with topline results expected in Q2 2025. This represents a critical inflection point for their platform technology.

The financial picture shows a reduced quarterly net loss of $6.5 million ($0.18 per basic share) compared to $25.0 million ($0.69 per share) in Q1 2024. However, this improvement largely stems from a non-cash gain of $5.2 million from changes in fair value of their convertible loan rather than operational improvements.

The company's cash position improved to $11.7 million as of March 31, up from $9.3 million at year-end 2024, bolstered by a new $10 million secured credit agreement with major shareholder Innoviva. They also received $4.65 million in non-dilutive DoD funding to support their bacteremia program.

On the operational front, R&D expenses decreased to $5.4 million from $8.0 million year-over-year, indicating the completion of the Phase 1b/2a trial. Revenue decreased to $0.5 million from $1.0 million, representing the MTEC's contribution to the S. aureus bacteremia program.

The company is positioning for an end-of-Phase 2 meeting with the FDA, which will be crucial for defining the pathway to Phase 3 trials and potential registration. The company's focus on bacteriophage therapeutics for antibiotic-resistant infections addresses a significant unmet medical need, but their runway remains limited without additional funding or partnerships to support costly late-stage clinical development.

LOS ANGELES, May 14, 2025 /PRNewswire/ -- Armata Pharmaceuticals, Inc. (NYSE American: ARMP) ("Armata" or the "Company"), a clinical-stage biotechnology company focused on the development of high-purity, pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections, today announced financial results for its first quarter ended March 31, 2025, and provided a corporate update.

First Quarter 2025 and Recent Developments:

• Anticipating announcement of topline results from Phase 1b/2a diSArm study of intravenous AP-SA02 as a potential treatment for Staphylococcus aureus ("S. aureus") bacteremia in the first half of 2025.
  
  
• Received an additional $4.65 million of non-dilutive funding pursuant to a previously announced U.S. Department of Defense (the "DoD") award through the Medical Technology Enterprise Consortium ("MTEC") and managed by the Naval Medical Research Command ("NMRC") – Naval Advanced Medical Development ("NAMD") with funding from the Defense Health Agency and Joint Warfighter Medical Research Program.
  • Supports Phase 2a study close-out activities, as well as the preparation and execution of an end-of-Phase 2 meeting with the U.S. Food and Drug Administration (the "FDA").
    
    
• Entered into a $10.0 million secured credit agreement with Innoviva Strategic Opportunities LLC, a wholly-owned subsidiary of Innoviva, Inc., Armata's principal shareholder (collectively, "Innoviva").
  • Amended existing credit and security agreements with Innoviva to extend the maturity date of each to March 12, 2026.
    
    
• Further advanced bacteriophage science through presentations and publications.
  • Presented at the 7th Annual Bacteriophage Therapy Summit held on March 13th in Boston, Massachusetts.

"During the first quarter of 2025, we completed our third Phase 2 study, specifically our Phase 1b/2a diSArm study of intravenous AP-SA02 as a potential treatment for complicated S. aureus bacteremia," stated Dr. Deborah Birx, Chief Executive Officer of Armata. "Topline data is anticipated in the second quarter of 2025 to support a potential future pivotal efficacy trial. We recently announced additional award funding from the DoD through MTEC, which will be used to continue the support for the AP-SA02 product candidate and activities required for the end-of-Phase 2 meeting with the FDA to align on an efficient path toward Phase 3 and registration." 

"We continue to stay true to our mission of evaluating phage-based therapeutics in rigorously designed, randomized controlled clinical trials that can support potential regulatory approval, and I am very pleased with our progress to date," Dr. Birx concluded.

First Quarter 2025 Financial Results

Grant and Award Revenue. The Company recognized grant and award revenue of $0.5 million for the three months ended March 31, 2025, compared to $1.0 million in the comparable period in 2024. This represents MTEC's share of the costs incurred for the Company's AP-SA02 program for the treatment of S. aureus bacteremia.

Research and Development. Research and development expenses for the three months ended March 31, 2025 were approximately $5.4 million, compared to approximately $8.0 million for the comparable period in 2024. The Company continues to invest in clinical-related expenses associated with its primary development programs.

General and Administrative. General and administrative expenses for the three months ended March 31, 2025 were approximately $3.3 million, compared to approximately $3.2 million for the comparable period in 2024. The increase of $0.1 million is primarily related to an increase of $0.5 million in personnel expenses and an increase of $0.1 million in lease expenses, partially offset by a decrease of $0.5 million in consulting fees.

Loss from Operations. Loss from operations for the three months ended March 31, 2025 was approximately $8.2 million, compared to a loss from operations of approximately $10.2 million for the comparable period in 2024.

Net Loss. The net loss for the first quarter of 2025 was $6.5 million, or $0.18 loss per share on a basic and $0.20 loss per share on a diluted basis, as compared to a net loss of $25.0 million, or $0.69 loss per share on both a basic and diluted basis, for the comparable period in 2024. The net loss for the quarter ended March 31, 2025 included a non-cash gain from changes in fair value of the Company's convertible loan of $5.2 million, compared to a $13.0 million non-cash loss from changes in fair value of the Company's convertible loan for the quarter ended March 31, 2024. 

Cash and Cash Equivalents. As of March 31, 2025, Armata held approximately $11.7 million of unrestricted cash and cash equivalents, compared to $9.3 million as of December 31, 2024.

As of May 8, 2025, approximately 36.2 million common shares were outstanding.

About Armata Pharmaceuticals, Inc.

Armata is a clinical-stage biotechnology company focused on the development of high-purity 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. Armata is committed to advancing phage therapy with drug development expertise that spans bench to clinic including in-house phage-specific current Good Manufacturing Practices ("cGMP") manufacturing to support full commercialization.

Forward Looking Statements

This communication contains "forward-looking" statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events, results or to Armata's future financial performance and involve known and unknown risks, uncertainties and other factors which may cause Armata's actual results, performance or events to be materially different from any future results, performance or events expressed or implied by the forward-looking statements. In some cases, you can identify these statements by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or the negative of those terms, and similar expressions. These forward-looking statements reflect management's beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this communication and are subject to risks and uncertainties including risks related to Armata's development of bacteriophage-based therapies; ability to staff and maintain its production facilities under fully compliant cGMP; ability to meet anticipated milestones in the development and testing of the relevant product; ability to be a leader in the development of phage-based therapeutics; ability to achieve its vision, including improvements through engineering and success of clinical trials; ability to successfully complete preclinical and clinical development of, and obtain regulatory approval of its product candidates and commercialize any approved products on its expected timeframes or at all; and Armata's estimates regarding anticipated operating losses, capital requirements and needs for additional funds. 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 U.S. Securities and Exchange Commission (the "SEC"), including in Armata's Annual Report on Form 10-K, filed with the SEC on March 21, 2025, 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
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 (in thousands) (unaudited)
		March 31, 2025			December 31, 2024
Assets
Current assets
Cash and cash equivalents		$	11,688		$	9,291
Prepaid expenses and other current assets			1,240			1,273
Other receivables			238			744
Total current assets			13,166			11,308
Property and equipment, net			12,883			13,241
Operating lease right-of-use asset			41,090			41,687
Intangible assets, net			13,746			13,746
Other long term assets			6,365			6,455
Total assets		$	87,250		$	86,437
Liabilities and stockholders' deficit
Accounts payable, accrued and other current liabilities			7,757			9,295
Convertible Loan, current			27,694			—
Term debt, current			75,089			38,954
Total current liabilities		$	110,540		$	48,249
Convertible Loan, non-current			—			32,897
Term debt, non-current			—			22,539
Operating lease liabilities, net of current portion			27,416			27,694
Deferred tax liability			3,077			3,077
Total liabilities			141,033			134,456
Stockholders' deficit			(53,783)			(48,019)
Total liabilities and stockholders' deficit		$	87,250		$	86,437

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)
		Three Months Ended
		March 31,
		2025			2024
Grant and award revenue		$	491		$	966
Operating expenses
Research and development			5,429			8,016
General and administrative			3,253			3,178
Total operating expenses			8,682			11,194
Operating loss			(8,191)			(10,228)
Other income (expense)
Interest income			59			52
Interest expense			(3,602)			(1,820)
Change in fair value of the Convertible Loan			5,203			(13,025)
Total other income (expense), net			1,660			(14,793)
Net loss		$	(6,531)		$	(25,021)
Per share information:
Net loss per share, basic		$	(0.18)		$	(0.69)
Weighted average shares outstanding, basic			36,184,802			36,124,980
Net loss per share, diluted		$	(0.20)		$	(0.69)
Weighted average shares outstanding, diluted			59,478,662			36,124,980

 

Armata Pharmaceuticals, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Three Months Ended March 31,
		2025			2024
Operating activities:
Net loss		$	(6,531)		$	(25,021)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense			377			317
Stock-based compensation expense			781			534
Change in fair value of the Convertible Loan			(5,203)			13,025
Non-cash interest expense			3,596			1,815
Non-cash interest income			—			(26)
Change in right-of-use asset			597			464
Changes in operating assets and liabilities:			(1,197)			(1,692)
Net cash used in operating activities			(7,580)			(10,584)
Investing activities:
Purchases of property and equipment			(99)			(250)
Net cash used in investing activities			(99)			(250)
Financing activities:
Proceeds from issuance of term debt, net of issuance costs			10,000			34,889
Payments for taxes related to net share settlement of equity awards			(14)			—
Proceeds from exercise of stock options			—			42
Net cash provided by financing activities			9,986			34,931
Net increase in cash, cash equivalents and restricted cash			2,307			24,097
Cash, cash equivalents and restricted cash, beginning of period			14,771			19,243
Cash, cash equivalents and restricted cash, end of period		$	17,078		$	43,340
		Three Months Ended March 31,
		2025			2024
Cash and cash equivalents		$	11,688		$	37,860
Restricted cash			5,390			5,480
Cash, cash equivalents and restricted cash		$	17,078		$	43,340

 

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SOURCE Armata Pharmaceuticals, Inc.

FAQ

What were Armata Pharmaceuticals (ARMP) key financial results for Q1 2025?

In Q1 2025, Armata reported revenue of $0.5M, net loss of $6.5M ($0.18 per share), R&D expenses of $5.4M, and held $11.7M in cash and cash equivalents.

How much new funding did ARMP secure in Q1 2025?

Armata secured $14.65M in total new funding: $4.65M in non-dilutive funding from the DoD and a $10M secured credit agreement with Innoviva.

What is the status of Armata's AP-SA02 clinical trial?

Armata completed its Phase 1b/2a diSArm study of AP-SA02 for S. aureus bacteremia treatment, with topline results expected in Q2 2025.

How did ARMP's operating expenses change in Q1 2025 compared to Q1 2024?

R&D expenses decreased from $8.0M to $5.4M, while G&A expenses slightly increased from $3.2M to $3.3M year-over-year.

What is Armata's current cash position as of Q1 2025?

As of March 31, 2025, Armata held $11.7M in cash and cash equivalents, up from $9.3M at the end of 2024.