Armata Pharmaceuticals Announces Financial Results for the Third Quarter 2026 and Provides Corporate Update

(NYSE American: ARMP) Armata Pharmaceuticals, Inc. announced financial results for its third quarter ended September 30, 2026, and provided a corporate update. Dr. Deborah Birx, Chief Executive Officer, stated that the company is advancing toward initiating the Phase 3 superiority study of AP-SA02, with operational infrastructure established and manufacturing capabilities in place. Armata continued discussions with the FDA to finalize the Phase 3 study design for AP-SA02, submitted protocol revisions, and responded to all Clinical, Chemistry, Manufacturing, and Controls (CMC), and Regulatory comments from the FDA's End-of-Phase 2 meeting. Four engineering runs of AP-SA02 were completed at the company's in-house cGMP manufacturing facility in Los Angeles, California, and one cGMP production run and vialing of AP-SA02 drug product was completed in Q3 2026. The company executed contracts with clinical research organizations and continued negotiating clinical trial agreements with initial U.S. clinical trial sites. The Phase 3 study is expected to initiate in the second half of 2026, pending FDA protocol concurrence. AP-SA02 received FDA Breakthrough Therapy designation for adjunct treatment of complicated bacteremia caused by MSSA or MRSA, and now holds Breakthrough Therapy, Fast Track, and Qualified Infectious Disease Product designations. The FDA agreed to an Initial Pediatric Study Plan (Agreed iPSP) for future pediatric evaluation of AP-SA02, with pediatric studies deferred pending adult Phase 3 data. Armata received $3.7 million in additional non-dilutive funding from the U.S. Department of War (DoW) for AP-SA02 Phase 3 execution, bringing cumulative DoW funding under the award to approximately $32.4 million, including $28.7 million previously provided. New AP-SA02 data was presented at the 20th International Symposium on Staphylococci and Staphylococcal Infections (ISSSI) in Banff, Alberta, Canada, and a peer-reviewed article was published in the Journal of Molecular Biology. Two U.S. patents were issued: U.S. Patent No. 12,751,983 (issued October 6, 2026) for methods of treating S. aureus infections with AP-SA02 (protection until at least February 2041), and U.S. Patent No. 12,594,312 (issued April 7, 2026) for methods of treating Pseudomonas infections with AP-PA02 (protection expected until January 2043). For the three months ended September 30, 2026, grant and award revenue was $3.2 million, compared to $1.2 million in 2025. Research and development expenses were approximately $6.8 million, compared to $5.8 million in 2025. General and administrative expenses were approximately $3.7 million, compared to $3.1 million in 2025. Loss from operations was approximately $7.4 million, compared to $7.8 million in 2025. Other income, net, was approximately $62.2 million, compared to other expense, net, of $18.9 million in 2025, including a gain of $69.6 million from changes in the fair value of the convertible loan (compared to a loss of $14.6 million in 2025). Net income for Q3 2026 was $54.9 million, or $1.15 earnings per share basic and ($0.24) loss per share diluted, compared to a net loss of ($26.7) million, or $(0.74) loss per share basic and diluted in 2025. As of September 30, 2026, Armata held approximately $18.3 million in unrestricted cash and cash equivalents, compared to $8.7 million as of December 31, 2025. As of November 6, 2026, 37,192,632 common shares were outstanding. Condensed consolidated balance sheets show total assets of $84,478,000 as of September 30, 2026, and $76,882,000 as of December 31, 2025. Total current liabilities were $186,778,000 as of September 30, 2026, and $8,947,000 as of December 31, 2025. Total liabilities were $258,606,000 as of September 30, 2026, and $295,478,000 as of December 31, 2025. Total stockholders' deficit was ($174,128,000) as of September 30, 2026, and ($218,596,000) as of December 31, 2025. For the three months ended September 30, 2026, grant and award revenue was $3,171,000, research and development expenses were $6,830,000, general and administrative expenses were $3,724,000, operating loss was $7,383,000, interest income was $206,000, interest expense was $7,561,000, change in fair value of the Convertible Loan was $69,595,000, total other income (expense), net, was $62,240,000, net income was $54,857,000, income attributable to participating warrants was $12,219,000, net income attributable to common stockholders was $42,638,000, net income per share basic was $1.15, and net loss per share diluted was ($0.24). Weighted average shares outstanding basic were 37,181,573 and diluted were 62,679,380 for the three months ended September 30, 2026.