Armata Pharma inks deal with Innoviva

Armata Pharmaceuticals (NYSEMKT:ARMP) and Innoviva (NASDAQ:INVA) have entered into a securities purchase agreement pursuant to which Innoviva will purchase ~$25M in Armata common stock and warrant securities.

As per the terms of the agreement, Innoviva will purchase ~8.7M newly issued Armata’s common shares, at $2.87 per share, and warrants to purchase same number of common stock, with an exercise price of $2.87 per share.

The stock purchases are expected to occur in two tranches.

The transactions are expected to close during Q1.

Also, Armata hopes to achieve the following milestones in 2020:

Initiate a clinical trial evaluating safety and tolerability of AP-PA02 in cystic fibrosis patients chronically infected with P. aeruginosa and obtain topline data.

Obtain third party, non-dilutive funding to advance AP-SA02, into clinical trials and file an IND to initiate studies of AP-SA02.

Shares are up 22% premarket.

https://seekingalpha.com/news/3535050-armata-pharma-inks-deal-innoviva-shares-up-22-premarket