MARINA DEL REY, Calif., Aug. 14, 2019 /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 infections, today announced second quarter results and provided a corporate and clinical update.
Key Second Quarter and Subsequent Period Highlights:
Successfully completed the merger of C3J Therapeutics, Inc. ("C3J") and AmpliPhi Biosciences Corporation to form Armata Pharmaceuticals. Closed $10.0 million concurrent financing led by existing C3J shareholders. Hosted successful Key Opinion Leader meeting featuring Dr. Robert "Chip" Schooley from the University of California-San Diego who discussed the rapidly growing antibiotic resistance crisis and the promise of phage's unique mechanism of action as an effective alternative. Strengthened intellectual property portfolio with a U.S. patent covering synthetic bacteriophage and additional patent allowances in Europe and Canada that cover various aspects of the Company's phage program and lead product candidate, AP-SA01, targeting Staphylococcus aureus. Announced a publication in the peer-reviewed journal Infection detailing a case study in which a cystic fibrosis patient was successfully treated for a multidrug-resistant Pseudomonas aeruginosa infection with the Company's natural phage product, AP-PA01. Provided a corporate update at the 39th Annual Canaccord Genuity Growth Conference. "This is our first quarterly report since the May 9 merger between C3J and AmpliPhi, and I am pleased to report that the rationale for bringing these two companies together is playing out as planned," said Todd R. Patrick, Chief Executive Officer of Armata. "We are now working toward potentially value-creating milestones, including the initiation of a Phase 1/2 clinical trial of our lead phage product candidate, AP-SA01, in S. aureus bacteremia. We are also moving our phage product candidate targeting P. aeruginosa respiratory infections, ahead toward the clinic. In 2020, we expect to have both programs in clinical trials under U.S. Investigational New Drug (IND) applications with the FDA. In addition, our engineered phage platform and proprietary phage-specific GMP manufacturing capabilities provide us with significant advantages in the identification and development of new phage candidates and should allow us to efficiently expand our pipeline while pursuing additional potential partnerships."
"The Key Opinion Leader meeting that we hosted in June highlighted the potential for phage therapy to meet the urgent need for new treatments that address antibiotic resistance. We are well positioned to be a leader in the development of phage-based therapeutics," Mr. Patrick concluded.
Upcoming Milestones in 2019/2020:
Initiate Phase 1/2 study of AP-SA01 in bacteremia; study protocol currently being finalized. Conduct pre-IND meeting, file IND and initiate first-in-human clinical study for AP-PA02, a phage product candidate targeting Pseudomonas respiratory infections. Second Quarter Financial Results
Research and Development. Research and Development expenses for the three months ended June 30, 2019 were $3.1 million as compared to $2.3 million for the comparable period in 2018. The increase of $0.8 million was primarily due to an increase in personnel expenses resulting from the merger with AmpliPhi in May 2019.
General and Administrative. General and Administrative expenses for the three months ended June 30, 2019 were $2.1 million as compared to $0.6 million. The increase of $1.5 million was due primarily to a $0.7 million increase in professional fees associated with the merger and a $0.6 million increase in personnel and non-cash stock-based compensation expenses.
Loss from Operations. Loss from operations for the three months ended June 30, 2019 was $5.2 million as compared to $2.8 million for the comparable period in 2018. The increase of $2.3 million was due to additional operating costs in connection with the merger and associated transaction costs.
Cash and Equivalents. As of June 30, 2019, Armata held $13.2 million of unrestricted cash and equivalents as compared to $9.7 million as of December 31, 2018. Concurrent with the closing of the merger on May 9, 2019, an investor syndicate comprised of certain existing C3J shareholders invested $10.0 million into the Company. As of August 14, there were approximately 10.0 million shares of common stock outstanding.
Armata is scheduled to present at the Ladenburg Thalmann Healthcare Conference on September 24 and the Cantor Fitzgerald Global Healthcare Conference on October 2-4.
