Overview

Armata Pharmaceuticals is a clinical-stage biotechnology company focused on developing high-purity, pathogen-specific bacteriophage therapeutics to treat antibiotic-resistant and difficult-to-treat bacterial infections. The company sees bacteriophages as a promising alternative to traditional antibiotics, with the potential to effectively treat bacterial infections while preserving the normal human microbiome.

Armata has completed three critical Phase 2 clinical trials evaluating two distinct phage cocktails against two different bacterial pathogens. The company’s lead pulmonary candidate, AP-PA02, has demonstrated promising results in treating chronic pulmonary infections caused by Pseudomonas aeruginosa in both cystic fibrosis and non-cystic fibrosis bronchiectasis patients. Armata’s acute infection candidate, AP-SA02, is being evaluated in a Phase 1b/2a study for the treatment of Staphylococcus aureus bacteremia.

The company has made significant progress in improving its phage manufacturing processes, increasing titers and production efficiency to support commercial viability. Armata believes it is uniquely positioned to address the growing threat of antibiotic-resistant bacterial infections through its proprietary phage-based technology.

Recent Events

Armata has received additional non-dilutive funding and extended its existing debt agreements:

• In April 2025, the company received $4.65 million in additional award funding through the Medical Technology Enterprise Consortium (MTEC), increasing the total MTEC award to $26.2 million.

• In March 2025, Armata entered into a new $10 million credit agreement and amended its existing Convertible Loan, 2023 Loan, and 2024 Loan to extend the maturity dates to March 2026.

Results of Operations

• Grant and award revenue decreased by 49.2% in Q1 2025 compared to Q1 2024, reflecting lower costs incurred for the AP-SA02 program.

• Research and development expenses decreased by 32.3% in Q1 2025, primarily due to lower clinical trial costs for the AP-PA02 non-cystic fibrosis bronchiectasis trial.

• General and administrative expenses increased slightly by 2.4% in Q1 2025.

• Armata recognized a gain of $5.2 million on the change in fair value of the Convertible Loan in Q1 2025, compared to a loss of $13.0 million in Q1 2024.

Liquidity, Capital Resources and Financial Condition

• Armata’s cash and cash equivalents of $11.7 million as of March 31, 2025 will not be sufficient to fund operations for the next 12 months, raising substantial doubt about the company’s ability to continue as a going concern.

• The company plans to raise additional capital through a combination of public and private equity, debt financing, strategic alliances, and grant/award arrangements to fund its operations and development programs.

• Armata’s ability to secure additional financing in a timely manner or on favorable terms is not entirely within its control and cannot be assured.

Overall, Armata has made progress in advancing its phage-based therapeutic candidates, but faces ongoing challenges in securing sufficient funding to complete the necessary development and regulatory approval processes. The company remains committed to evaluating phage therapies as alternatives to traditional antibiotics.