Armata Pharmaceuticals Inc (NASDAQ: ARMP) was a top gainer in yesterday’s session, and closed the day with gains of 73.84%. This followed the company’s announcement that, it had entered into a securities agreement with Innoviva. Under the deal, Innoviva will buy $25 million worth of ARMP stock once it meets certain conditions for the purchase.
The terms of the deal state that, Innoviva will buy about $8.7 million of new shares of ARMP stock at $2.87 per share. It will also have the warrants to buy an extra $8.7 million shares of the company’s stock at $2.87 a share. This will happen in two phases, and at the end of the first phase, Innoviva will buy about 1 million shares for $2.8 million. At the end of the second phase, Innoviva will buy about 7.7 million shares at $22.2 million. Once the deal is complete, Innoviva will be eligible to appoint two directors to Armata’s board.
The company also announced that, it will use the money from this deal to support its current programs aimed at the advancement of it bacteriophage development program. This includes the company’s expected human studies on its lead treatment candidate called AP-PA02, which targets Pseudomonas Aeruginosa. It will also be used to fund AP-SA02, a treatment candidate that target Staphylococcus Aureus.
Commenting on the deal, Armata’s CEO Todd Patrick stated that, over several months, the company had made progress on its bacteriophage program. He added that, now that the company was entering human clinical trials on this program, the agreement with Innoviva was a huge boost, due to Innoviva’s experience in developing drugs.
From its price action, ARMP was in a bullish breakout in yesterday’s trading session. It opened the day at $3.98, and traded between a low of $3.83 and a high of $6.92 before closing the day at $4.85. Volumes in the day stood at 10.76 million.
About Armata Pharmaceuticals Inc
Armata Pharmaceuticals Inc is a biopharma company that develops therapies for antibiotic-resistant infections. It is based in Marina Del Ray, California.