Armata Pharmaceuticals (ARMP) AI Stock Analysis

• Market Cap: $67.66M
• Dividend Yield: N/A
• Average Volume (3M): 9.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 34.92%
• EPS Growth: 30.59%
• Country: US
• Employees: 66
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -1.64
• Shares Outstanding: 36,183,067
• 10 Day Avg. Volume: 9,858
• 30 Day Avg. Volume: 9,809
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 12.37
• Price to Cash Flow (P/CF): -1.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.00
• Price Target Upside: 255.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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 Business Overview & Revenue Model

Company Description

Armata 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 Money

Armata 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.49M	4.53M	5.51M	4.47M	823.00K	0.00
	Gross Profit
1.57M	-29.24M	4.62M	-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 Sheet		Cash, Cash Equivalents and Short-Term Investments
13.52M	13.52M	14.85M	10.29M	9.65M	6.03M
	Total Assets
109.96M	98.36M	95.83M	69.77M	39.52M	25.45M
	Total Debt
120.37M	120.37M	48.81M	37.99M	13.15M	2.86M
	Net Debt
106.85M	106.85M	33.96M	27.70M	3.50M	-3.17M
	Total Liabilities
142.03M	130.43M	59.75M	44.37M	20.66M	10.86M
	Stockholders Equity
-32.06M	-32.06M	36.08M	25.40M	18.86M	14.59M
Cash Flow		Free 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	-824.00K	2.88M
	Financing Cash Flow
34.91M	53.99M	44.02M	25.52M	23.21M	8.97M

Armata Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADMA	71 Outperform	$4.10B	22.72	81.65%	―	63.39%	―
Sector *	49 Neutral	$6.84B	0.05	-53.14%	2.48%	24.49%	-3.26%
AKBA	46 Neutral	$421.09M	―	91.25%	―	-12.26%	32.86%
BCRX	45 Neutral	$1.58B	―	18.68%	―	36.00%	63.50%
ARMP	44 Neutral	$67.66M	―	81.15%	―	34.92%	30.59%
AKTX	44 Neutral	$11.30M	―	291.66%	―	―	―

Armata Pharmaceuticals Corporate Events

Armata Pharmaceuticals Reports Positive Phase 2 Study Results

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.

Armata Pharmaceuticals Announces CMO Departure Agreement

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.

Armata Pharmaceuticals Extends Credit Agreement and CMO Departs

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.

Armata Completes Enrollment for Innovative Bacteriophage Study

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.