0001104659-21-066884.txt : 20210514 0001104659-21-066884.hdr.sgml : 20210514 20210514161839 ACCESSION NUMBER: 0001104659-21-066884 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20210513 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210514 DATE AS OF CHANGE: 20210514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Armata Pharmaceuticals, Inc. CENTRAL INDEX KEY: 0000921114 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 911549568 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37544 FILM NUMBER: 21924916 BUSINESS ADDRESS: STREET 1: 4503 GLENCOE AVENUE CITY: MARINA DEL REY STATE: CA ZIP: 90292 BUSINESS PHONE: 310-665-2928 MAIL ADDRESS: STREET 1: 4503 GLENCOE AVENUE CITY: MARINA DEL REY STATE: CA ZIP: 90292 FORMER COMPANY: FORMER CONFORMED NAME: AmpliPhi Biosciences Corp DATE OF NAME CHANGE: 20130222 FORMER COMPANY: FORMER CONFORMED NAME: TARGETED GENETICS CORP /WA/ DATE OF NAME CHANGE: 19940331 8-K 1 tm2116541d1_8k.htm FORM 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): May 13, 2021

 

ARMATA PHARMACEUTICALS, INC.

(Exact name of Registrant as specified in its charter)

 

Washington 001-37544 91-1549568
(State or other jurisdiction of incorporation or
organization)
(Commission File Number) (IRS Employer Identification No.)

 

4503 Glencoe Avenue

Marina del Rey, California

 

90292

(Address of principal executive offices) (Zip Code)

 

(310) 655-2928

(Registrant’s Telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on Which Registered
Common Stock   ARMP   NYSE American

 

 

 

 

 

Item 2.02Results of Operations and Financial Condition.

 

On May 13, 2021, Armata Pharmaceuticals, Inc. (the “Company”) announced its financial results for the quarter ended March 31, 2021, in the press release attached hereto as Exhibit 99.1 and incorporated herein by reference.

 

The information in this Item 2.02 and the attached Exhibit 99.1 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 and the attached exhibit shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

 

Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits.

 

Exhibit
No.

 

Description

   
99.1   Press Release.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 14, 2021 Armata Pharmaceuticals, Inc.
   
  By: /s/ Steve R. Martin
  Name:  Steve R. Martin
  Title: Chief Financial Officer

  

 

 

 

EX-99.1 2 tm2116541d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Armata Pharmaceuticals Announces First Quarter Results and Provides

General Corporate Update

 

Company earns $750,000 milestone payment related to SWARM-P.a. Study

 

MARINA DEL REY, Calif., May 13, 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 first quarter of 2021 and provided a corporate update.

 

First Quarter 2021 and Recent Highlights:

 

·Continued to advance the single ascending dose (SAD) cohort of the SWARM-P.a. Phase 1b/2a clinical trial evaluating AP-PA02 as a potential treatment for cystic fibrosis patients with chronic Pseudomonas aeruginosa airway infection

 

·Progressed IND-enabling activities in preparation for a Phase 1b/2 clinical trial evaluating AP-SA02 as a potential treatment for Staphylococcus aureus bacteremia

 

·Raised gross proceeds of $20.0 million through a securities purchase agreement with Innoviva Strategic Opportunities LLC, a wholly owned subsidiary of Innoviva, Inc., Armata’s largest shareholder

 

·Subsequent to the end of the quarter, the Company earned a $750,000 payment from the Cystic Fibrosis (CF) Foundation for achieving a milestone related to the SWARM-P.a. study

 

“Despite the risks COVID-19 present to people with chronic lung infections, we are making progress with our SWARM-P.a. study as the pandemic’s negative impact on trial operations continues to improve,” stated Todd R. Patrick, Chief Executive Officer of Armata. “As we have noted previously, the study is being funded in part by a Therapeutics Development Award from the CF Foundation and we are grateful for their support. At the same time, we continue to engage in IND-enabling activities in support of a Phase 1b/2 trial of our second candidate, AP-SA02, in Staphylococcus aureus bacteremia, which would give us line-of-sight to two programs in the clinic.

 

“Beyond these programs, we are working toward the initiation of additional clinical trials assessing our phage-based therapeutic candidates in other difficult to treat indications, including non-cystic fibrosis bronchiectasis, pneumonia and prosthetic joint infection.

 

“With our recent financing, we believe we are well funded to achieve multiple pre-clinical and clinical milestones over the next two years,” Mr. Patrick concluded.

 

Anticipated 2021 and 2022 Milestones:

 

·Complete the single ascending dose (SAD) cohort of the SWARM-P.a. Phase 1b/2a clinical trial evaluating AP-PA02 as a potential treatment for Pseudomonas aeruginosa infections in the coming months

 

 

 

 

 

·Initiate and complete the multiple ascending dose (MAD) cohort of SWARM-P.a. trial in the fourth quarter of 2021 or first quarter of 2022

 

·Initiate a Phase 1b/2 clinical trial evaluating AP-SA02 as a potential treatment for Staphylococcus aureus bacteremia

 

·Initiate at least one additional clinical trial in a new indication

 

First Quarter Financial Results

 

Grant Revenue. The Company recognized grant revenue of $1.1 million for the three months ended March 31, 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 will receive a $15.0 million grant award from MTEC over a three-year period administered by the U.S. Department of Defense with funding from the Defense Health Agency and Joint Warfighter Medical Research Program. The Company recognized no grant revenue in the comparable period in 2020.

 

Research and Development. Research and development expenses for the three months ended March 31, 2021 were approximately $4.4 million as compared to $2.8 million for the comparable period in 2020. The increase was primarily related to the increase in clinical trial and personnel related expenses.

 

General and Administrative. General and administrative expenses for the three months ended March 31, 2021 and 2020 were $2.2 million in both years.

 

Loss from Operations. Loss from operations for the three months ended March 31, 2021 was $(5.4) million as compared to a loss from operations of $(4.9) million for the comparable period in 2020.

 

Cash and Equivalents. As of March 31, 2021, Armata held approximately $22.5 million of unrestricted cash and cash equivalents, as compared to $9.7 million as of December 31, 2020. During the first quarter, Armata completed a $20 million private placement financing with Innoviva Strategic Opportunities LLC, a wholly-owned subsidiary of Innoviva.

 

As of May 13, 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 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, and statements related to the timing and results of clinical trials, including the anticipated results 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; 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.

 

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
         
   March 31, 2021   December 31, 2020 
   (Unaudited)     
Assets          
  Cash and cash equivalents  $22,455,000   $9,649,000 
  Award receivable   1,125,000    561,000 
  Prepaids and other current assets   459,000    636,000 
Total current assets   24,039,000    10,846,000 
Property and equipment, net   12,811,000    12,837,000 
Other long term assets   2,249,000    2,087,000 
Intangible assets, net   13,746,000    13,746,000 
Total assets  $52,845,000   $39,516,000 
           
Liabilities and stockholders’ equity          
Total current liabilities  $4,981,000   $6,705,000 
Long term liabilities   10,775,000    10,877,000 
Deferred tax liability   3,077,000    3,077,000 
Total liabilities   18,833,000    20,659,000 
Stockholders’ equity   34,012,000    18,857,000 
Total liabilities and stockholders’ equity  $52,845,000   $39,516,000 

 

 

 

 

 

Armata Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

 

   Three Months Ended March 31, 
   2021   2020 
   (Unaudited)   (Unaudited) 
         
Revenue  $1,066,000   $- 
Operating expenses:          
Research and development   4,350,000    2,750,000 
General and administrative   2,151,000    2,171,000 
Total operating expenses   6,501,000    4,921,000 
Loss from operations   (5,435,000)   (4,921,000)
Other income (expense), net   (60,000)   (157,000)
Loss before income taxes and Net Loss  $(5,495,000)  $(5,078,000)
Net loss per share, basic and diluted  $(0.27)  $(0.49)
Weighted average shares outstanding, basic and diluted   20,458,355    10,451,746 

 

 

 

 

 

 

Armata Pharmaceuticals, Inc.
Condensed Consolidated Statement of Cash Flows
         
   Three Months Ended March 31, 
   2021   2020 
   (Unaudited)   (Unaudited) 
Operating activities:          
Net loss  $(5,495,000)  $(5,078,000)
Adjustments required to reconcile net loss to net cash used in operating activities:          
Stock-based compensation   842,000    1,044,000 
Depreciation   281,000    295,000 
Non-cash interest expense   62,000    159,000 
Payment of accreted interest for deferred consideration for asset acquisition   (586,000)   - 
Changes in operating assets and liabilities, net   (579,000)   (652,000)
Net cash used in operating activities   (5,475,000)   (4,232,000)
Investing activities:          
Purchases of property and equipment, net   (298,000)   (104,000)
Net cash used in investing activities   (298,000)   (104,000)
Financing activities:          
Principal payment of deferred consideration for asset acquisition   (1,414,000)   (1,000,000)
Proceeds from warrant and option exercises   445,000    81,000 
Procees from private placement financing, net   19,548,000    23,331,000 
Net cash provided by (used in) financing activities   18,579,000    22,412,000 
Net increase (decrease) in cash and cash equivalents   12,806,000    18,076,000 
Cash, cash equivalents and restricted cash, beginning of period   10,849,000    6,733,000 
Cash, cash equivalents and restricted cash, end of period  $23,655,000   $24,809,000 

 

 

Reconciliation of Cash and cash equivalents:  Three Months Ended March 31, 
   2021   2020 
Cash and cash equivalents  $22,455,000   $24,209,000 
Restricted cash   1,200,000    600,000 
Cash, cash equivalents and restricted cash  $23,655,000   $24,809,000 

 

 

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