Armata Pharma's Largest Shareholder Injects $45M For Its Bacteriophage Development

Armata Pharmaceuticals Inc ARMP has received $45 million of equity investment from its largest shareholder, Innoviva Inc INVA, following a $4.0 million investment in Q4 of 2021.

• Armata will use the proceeds to advance its clinical pipeline and strengthen its bacteriophage platform. 
• AP-PA02 leads the pipeline, currently under evaluation in the 'SWARM-P.a.' trial for chronic Pseudomonas aeruginosa infections in people with cystic fibrosis. 
• A second study, 'diSArm,' is evaluating AP-SA02 in patients with complicated Staphylococcus aureus bacteremia. 
• Innoviva will purchase 9 million newly issued Armata shares at $5/share and warrants to purchase up to 4.5 million additional shares, with an exercise price of $5/share per share. 
• The stock purchases are expected to occur in two tranches. 
• Innoviva purchased approximately 3.6 million shares and warrants for roughly $18.1 million upon execution. 
• At the closing of the second tranche, upon Armata stockholders voting in favor of the transaction, Innoviva will purchase approximately 5.4 million shares and warrants for $26.9 million.
• Innoviva expects to own approximately 70% of Armata's outstanding stock upon closing the second tranche.
• Innoviva Financials: The Company reported Q4 FY21 gross royalty revenues of $111.1 million from Glaxo Group Limited, up 18.3% Y/Y.
• Income from operations increased by 23% to $104.5 million, compared to the same quarter in 2020, because of higher royalty revenues and lower operating expenses. 
• Net cash and cash equivalents totaled $201.5 million, and receivables from GSK totaled $110.7 million.
• Price Action: ARMP shares closed at $5.08 on Wednesday, INVA stock closed 9.92% higher at $17.40 during after-hours trading on Wednesday.