Armata Pharmaceuticals secures additional DoD funding

Published 01/05/2025, 12:10
Armata Pharmaceuticals secures additional DoD funding

LOS ANGELES - Armata Pharmaceuticals, Inc. (NYSE American: ARMP), a biotechnology company specializing in bacteriophage therapeutics, has received an additional $4.65 million from the U.S. Department of Defense (DoD) to support the Phase 2a study of AP-SA02, a treatment candidate for Staphylococcus aureus bacteremia (SAB). This funding is part of a larger $26.2 million award through the Medical Technology Enterprise Consortium and managed by the Naval Medical Research Command. The company, currently valued at $57.53 million, generated $5.17 million in revenue over the last twelve months.

The recent funds will aid in the completion of the Phase 2a study and preparations for an end-of-phase 2 meeting with the U.S. Food and Drug Administration. The diSArm trial, a double-blind, placebo-controlled study, has completed enrollment with 50 subjects as of November 2024, and the last patient visit occurred in January 2025.

According to Dr. Deborah Birx, CEO of Armata, the company has successfully escalated dosing without significant adverse events and observed signs of in vivo phage amplification in some patients. The upcoming topline data, expected in the coming weeks, will guide the dosing for future efficacy studies.

Despite revealing a going concern explanatory paragraph in its Annual Report for the year ended December 31, 2024, Armata continues its clinical-stage development of pathogen-specific bacteriophage therapeutics for antibiotic-resistant infections. InvestingPro analysis reveals the company is quickly burning through cash, with short-term obligations exceeding liquid assets (current ratio: 0.23). The company maintains in-house U.S.-based manufacturing capabilities to support both clinical development and potential commercial production.

The information in this article is based on a press release statement from Armata Pharmaceuticals, Inc. The stock has shown recent momentum with a 17.61% return over the past week, and analysts have set a price target of $7.00. Discover more insights and 8 additional ProTips with InvestingPro.

In other recent news, Armata Pharmaceuticals has secured a $10 million credit facility from Innoviva Strategic Opportunities LLC. This financial agreement aims to support the development of Armata’s phage treatments, particularly targeting antibiotic-resistant bacteria. The funds will advance the company’s therapeutic candidates, AP-PA02 and AP-SA02, with a focus on a Phase 1b/2a trial for acute Staphylococcus aureus bacteremia. The credit agreement, which includes amendments to extend the maturity dates of previous agreements, carries a 14.0% annual interest rate and matures on March 12, 2026. This development marks an important step in Armata’s strategy to address antibiotic resistance through its pipeline of natural and synthetic phage candidates. Armata emphasizes its robust drug development capabilities, including in-house phage-specific cGMP manufacturing. The company has highlighted the potential risks and uncertainties associated with its forward-looking statements, as detailed in its SEC filings. These statements cover the company’s ability to develop, test, and gain regulatory approval for its therapies.

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