A Look at Armata Pharmaceuticals’s Valuation After Positive Phase 2a Bacteriophage Trial Results (ARMP)

Armata Pharmaceuticals (ARMP) just reported encouraging Phase 2a trial results for its experimental IV bacteriophage therapy, AP-SA02, targeting complicated Staphylococcus aureus bacteremia. The data was revealed during a presentation at IDWeek 2025.

See our latest analysis for Armata Pharmaceuticals.

News of Armata’s clinical breakthrough sent its share price surging 103% in a single day, fueling a remarkable 261% gain for investors year-to-date. Recent momentum has reversed previous years of stagnation, with the company’s one-year total shareholder return reaching 207%. This reflects renewed optimism and recognition of Armata’s growth potential as it advances to pivotal late-stage trials.

If Armata’s sudden momentum has you watching for the next breakthrough, this is a great opportunity to uncover promising innovators using our healthcare stocks screener See the full list for free.

With shares more than doubling overnight and analyst price targets implying further upside, investors are now asking whether Armata’s red-hot rally signals an undervalued opportunity, or if the market has already accounted for future growth.

Price-to-Sales of 37.2x: Is it justified?

Armata Pharmaceuticals is currently trading at a price-to-sales ratio of 37.2x, a substantial premium compared to both industry and peer benchmarks. At the last close of $7.05, this elevated multiple suggests the market may be assigning Armata a significant growth premium despite ongoing losses and volatile performance.

The price-to-sales (P/S) ratio is a valuation measure comparing a company’s share price to its revenues. It is commonly used for biotech firms that may not yet be profitable. For high-growth or early-stage pharma companies, investors sometimes accept steeper ratios because they anticipate future commercial breakthroughs. However, such premiums carry risk if growth does not materialize.

Relative to the US Biotechs industry average P/S of 11.3x and a peer average of 14.7x, Armata’s 37.2x stands out as especially expensive. This level of optimism implies expectations of future revenue expansion or clinical milestones that are not yet reflected in current financials.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Sales of 37.2x (OVERVALUED)

However, setbacks in late-stage trials or slower than expected revenue growth could quickly reverse Armata’s current momentum and trigger sharp corrections.

Find out about the key risks to this Armata Pharmaceuticals narrative.

Build Your Own Armata Pharmaceuticals Narrative

If you would rather come to your own conclusions or take a hands-on approach with the data, you can shape your personal view of Armata in just a few minutes. Do it your way

A great starting point for your Armata Pharmaceuticals research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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