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Armata Pharmaceuticals And Innoviva Announce $25M Strategic Investment To Support Advancement Of Armata's Bacteriophage Development Programs

Armata Pharmaceuticals, Inc. (NYSE:ARMP) ("Armata"), a biotechnology company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant infections, and Innoviva, Inc. (NASDAQ:INVA)

Benzinga · 01/28/2020 12:02

Armata Pharmaceuticals, Inc. (NYSE:ARMP) ("Armata"), a biotechnology company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant infections, and Innoviva, Inc. (NASDAQ:INVA) ("Innoviva"), a company with a portfolio of royalties that include respiratory assets partnered with Glaxo Group Limited, today announced that they have entered into a securities purchase agreement pursuant to which Innoviva will purchase, upon satisfaction of certain closing conditions, approximately $25 million in Armata common stock and warrant securities (excluding any consideration payable upon exercise of warrants).

Armata expects to use the proceeds from the offering to support the ongoing advancement of its bacteriophage development programs, including the expected first in human studies related to Armata's lead phage candidate, AP-PA02, targeting Pseudomonas aeruginosa, as well as AP-SA02, its phage candidate targeting Staphylococcus Aureus.

"We are excited by this opportunity and are eager to work with the Armata team in the development of this novel treatment for multi drug resistant bacterial infections which represent a serious and growing public health crisis," said Odysseas Kostas, M.D., Chairman of Innoviva's Board of Directors.

Pursuant to and subject to the terms and conditions of the securities purchase agreement and related agreements, Innoviva will purchase approximately 8.7 million newly issued shares of Armata's common stock, at a price of $2.87 per share, and warrants to purchase up to approximately 8.7 million additional shares of Armata's common stock, with an exercise price of $2.87 per share.  The stock purchases are expected to occur in two tranches.  At the closing of the first tranche, Innoviva will purchase approximately 1.0 million shares of common stock and warrants to purchase approximately 1.0 million shares of common stock for an aggregate purchase price of $2.8 million.  At the closing of the second tranche, upon Armata stockholders voting in favor of the transaction, Innoviva will purchase approximately 7.7 million shares of common stock and warrants to purchase approximately 7.7 million shares of common stock for an aggregate purchase price of $22.2 million.  Assuming the completion of the first closing, Innoviva will be entitled to appoint two directors to Armata's Board of Directors.  It currently is expected that Innoviva will appoint Sarah Schlesinger. M.D. and Odysseas Kostas, M.D. to serve on Armata's Board of Directors.