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Armata Pharmaceuticals Inc (ARMP)
:ARMP

Armata Pharmaceuticals (ARMP) AI Stock Analysis

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Armata Pharmaceuticals

(NYSE MKT:ARMP)

44Neutral
Armata Pharmaceuticals' stock score is primarily impacted by its weak financial performance and unattractive valuation due to ongoing losses and negative equity. However, recent positive clinical trial developments provide a glimpse of potential future growth, which is somewhat reflected in the technical indicators showing slight buying momentum. The overall outlook remains cautious due to significant financial instability.
Positive Factors
Clinical Trial Results
When a post-hoc intent-to-treat (ITT) analysis was conducted, a statistically significant reduction of P.a. CFUs in the lung at day 17 was observed.
Safety Profile
AP-PA02 was generally safe and well tolerated, with any treatment emergent adverse events being mild and self-limiting.
Negative Factors
Efficacy Analysis
An efficacy analysis of each independent cohort demonstrated no significant difference between subjects treated with AP-PA02 and placebo when the study's planned statistical analysis plan was utilized.

Armata Pharmaceuticals (ARMP) vs. S&P 500 (SPY)

Armata Pharmaceuticals Business Overview & Revenue Model

Company DescriptionArmata Pharmaceuticals (ARMP) is a biotechnology company focused on the development and commercialization of novel bacteriophage-based therapies to treat antibiotic-resistant infections. Operating within the biopharmaceutical sector, Armata aims to address the growing global health threat posed by multi-drug resistant bacteria by leveraging its expertise in bacteriophage technology, which offers a targeted approach to eliminating specific bacterial pathogens.
How the Company Makes MoneyArmata Pharmaceuticals generates revenue primarily through the development and commercialization of its bacteriophage-based therapies. The company may earn income through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies, which can include upfront payments, milestone payments, and royalties on product sales. Research and development funding from governmental and non-governmental organizations may also contribute to its revenue, supporting the advancement of its pipeline products. Additionally, Armata seeks to monetize its proprietary technology and intellectual property by entering into co-development agreements or out-licensing opportunities with industry partners.

Armata Pharmaceuticals Financial Statement Overview

Summary
Armata Pharmaceuticals is facing significant financial challenges, with persistent losses and a deteriorating balance sheet. While there is some improvement in gross profit and cash flow metrics, the negative equity and substantial operating losses highlight the need for strategic repositioning and capital restructuring to achieve financial stability.
Income Statement
20
Very Negative
The TTM data shows a decrease in revenue compared to the previous year, with total revenue of $2.49 million from $4.53 million. Gross profit margin improved slightly to 62.9% from a negative position, but the company remains unprofitable with a negative net profit margin of -165.9%. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.
Balance Sheet
15
Very Negative
The balance sheet reflects a concerning financial structure with negative stockholders' equity of -$50.97 million, leading to a negative equity ratio. The debt-to-equity ratio is not applicable due to negative equity. These factors highlight significant financial instability, posing risks to the company's solvency.
Cash Flow
30
Negative
The company reported negative free cash flow of -$42.09 million for the TTM, but it improved compared to the previous year's -$55.57 million. The operating cash flow to net income ratio suggests that cash flows are slightly better than net income, although both are negative. The company continues to rely on financing activities to support cash flow.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
2.49M4.53M5.51M4.47M823.00K0.00
Gross Profit
1.57M-29.24M4.62M-15.54M-13.62M-1.35M
EBIT
-41.48M-40.89M-36.95M-23.82M-21.59M-19.75M
EBITDA
-31.21M-39.92M-36.05M-22.65M-20.44M-19.75M
Net Income Common Stockholders
-41.36M-69.05M-36.89M-23.22M-22.82M-19.02M
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.52M13.52M14.85M10.29M9.65M6.03M
Total Assets
109.96M98.36M95.83M69.77M39.52M25.45M
Total Debt
120.37M120.37M48.81M37.99M13.15M2.86M
Net Debt
106.85M106.85M33.96M27.70M3.50M-3.17M
Total Liabilities
142.03M130.43M59.75M44.37M20.66M10.86M
Stockholders Equity
-32.06M-32.06M36.08M25.40M18.86M14.59M
Cash FlowFree Cash Flow
-42.09M-55.57M-34.69M-24.88M-19.09M-15.71M
Operating Cash Flow
-37.73M-47.42M-32.48M-23.57M-18.27M-15.58M
Investing Cash Flow
-4.35M-8.13M-2.21M-1.30M-824.00K2.88M
Financing Cash Flow
34.91M53.99M44.02M25.52M23.21M8.97M

Armata Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.97
Price Trends
50DMA
2.03
Negative
100DMA
2.14
Negative
200DMA
2.36
Negative
Market Momentum
MACD
-0.02
Positive
RSI
46.84
Neutral
STOCH
28.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARMP, the sentiment is Negative. The current price of 1.97 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.03, and below the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARMP.

Armata Pharmaceuticals Risk Analysis

Armata Pharmaceuticals disclosed 27 risk factors in its most recent earnings report. Armata Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Armata Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$4.10B22.7281.65%63.39%
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
46
Neutral
$421.09M91.25%-12.26%32.86%
45
Neutral
$1.58B18.68%36.00%63.50%
44
Neutral
$67.66M81.15%34.92%30.59%
44
Neutral
$11.30M291.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARMP
Armata Pharmaceuticals
1.97
-1.63
-45.28%
BCRX
BioCryst
7.54
2.54
50.80%
AKBA
Akebia Therapeutics
1.69
-0.01
-0.59%
ADMA
ADMA Biologics
17.91
11.92
199.00%
AKTX
Akari Therapeutics
0.91
-1.06
-53.81%

Armata Pharmaceuticals Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Armata Pharmaceuticals Reports Positive Phase 2 Study Results
Positive
Dec 19, 2024

Armata Pharmaceuticals announced positive results from its Phase 2 Tailwind study evaluating AP-PA02, an inhaled phage therapy for non-cystic fibrosis bronchiectasis patients with chronic Pseudomonas aeruginosa infections. The study demonstrated a statistically significant reduction in bacterial colony forming units, suggesting the potential of phage therapy to reduce reliance on chronic antibiotic use. AP-PA02 was well-tolerated with mild adverse events, highlighting its promising safety profile. These findings support Armata’s mission to develop phage-based therapeutics as new treatment alternatives for chronic pulmonary diseases.

Executive/Board Changes
Armata Pharmaceuticals Announces CMO Departure Agreement
Neutral
Dec 4, 2024

Armata Pharmaceuticals has reached a separation agreement with its Chief Medical Officer, Dr. Mina Pastagia, effective November 13, 2024. Dr. Pastagia will receive her base salary for 12 months in exchange for releasing claims against the company, contingent on her compliance with the agreement terms.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Armata Pharmaceuticals Extends Credit Agreement and CMO Departs
Neutral
Nov 15, 2024

The Company recently amended its Credit and Convertible Credit Agreements, extending their maturity dates to January 2026, a move that could impact its financial strategy. Concurrently, the Company announced the departure of its Chief Medical Officer, Mina Pastagia, offering her a severance package as they finalize her separation terms. These developments highlight significant operational and financial shifts for the Company.

Product-Related AnnouncementsBusiness Operations and Strategy
Armata Completes Enrollment for Innovative Bacteriophage Study
Positive
Nov 12, 2024

Armata Pharmaceuticals has announced the full enrollment of its Phase 1b/2a diSArm study, evaluating the intravenous AP-SA02 as a potential treatment for Staphylococcus aureus bacteremia, a severe bloodstream infection. With results expected in early 2025, the study aims to address the growing resistance to antibiotics, offering hope for innovative bacteriophage therapies in combating challenging infections. The upcoming data could pave the way for a pivotal efficacy trial later in the year, marking a significant step in modern medicine’s fight against antibiotic-resistant pathogens.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.