prtk-8k_20200225.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

February 25, 2020

Date of Report (Date of earliest event reported)

PARATEK PHARMACEUTICALS, INC.

(Exact name of Registrant as specified in its charter)

Delaware

 

001-36066

 

33-0960223

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

75 Park Plaza

Boston, MA

 

02116

(Address of principal executive offices)

 

(Zip Code)

(617) 807-6600

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

PRTK

The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2of the Securities Exchange Act of 1934 (§ 240 12b-2 of this chapter).

Emerging Growth Company

 

If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 


 

Item 7.01

Regulation FD Disclosure

On February 25, 2020, Paratek Pharmaceuticals, Inc., (the “Company”) issued a press release containing an update on its recent business activities as well as those for the quarter and full year ended December 31, 2019. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference. The Company will host a conference call and live audio webcast on Tuesday, February 25, 2020 at 4:30 p.m. EST to report fourth quarter and year end 2019 financial results and provide a corporate update. As part of this call, the Company will deliver the slide presentation attached to this report as Exhibit 99.2, which is incorporated herein by reference.

The information in this report, including Exhibits 99.1 and 99.2, is being furnished pursuant to Item 7.01 and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or in any filing under the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 8.01

Other Events.

 

As previously reported, on July 2, 2019, the Company entered into an At the Market Sales Agreement, or the 2019 Sales Agreement, with Jefferies LLC, or Jefferies, and BTIG, LLC, or BTIG, under which it may offer and sell its common stock having aggregate sales proceeds of up to $50.0 million from time to time through Jefferies or BTIG as its sales agents.

As of February 24, 2020, the Company has sold 8,858,301 shares of common stock pursuant to the 2019 Sales Agreement for $35.7 million in proceeds, after deducting commissions of $1.1 million. As of February 24, 2020, $13.2 million remains available for sale under the 2019 Sales Agreement.

Item 9.01

Exhibits.

(d) Exhibits.

 

 

 

Number

 

Description

 

 

 

99.1

 

Paratek Pharmaceuticals, Inc. Press Release dated February 25, 2020.

 

 

 

99.2

 

Paratek Pharmaceuticals, Inc. presentation for earnings call for the quarter and year ended December 31, 2019.


 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

PARATEK PHARMACEUTICALS, INC.

 

 

 

 

 

Date: February 25, 2020

 

 

 

By:

 

/s/ Sarah Higgins

 

 

 

 

 

 

Sarah Higgins

 

 

 

 

 

 

Principal Financial Officer

 

 

prtk-ex991_7.htm

 

Exhibit 99.1

 

 

 

 

 

Paratek Pharmaceuticals Announces Full Year 2019 Total Revenues of $16.5 Million including NUZYRA® (omadacycline) Net Sales of $11.5 Million

-- Paratek Expects Full Year 2020 Total Revenues to be Between $75 and $80 Million including NUZYRA Net Sales of Approximately $66 Million

-- Paratek Now Anticipates its Cash Runway Will Extend Through the End of 2023 with a Pathway to Cash Flow Break Even

 

BOSTON, February 25, 2020 -- Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK), a commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use, today reported financial results and provided an update on corporate activities for the fourth quarter and year-ended December 31, 2019.

 

“2019 was a transformative year for Paratek.  Demand for NUZYRA continued to increase in the fourth quarter with net sales growing a robust 74% versus the prior quarter.” said Evan Loh, M.D., Chief Executive Officer.  “With particular strength seen with the oral formulation, NUZYRA is on track to have one of the most successful antibiotics launches in the last decade.”    

 

Dr. Loh continued, “In December, we announced that we entered into a 5-year contract valued up to $285 million with Biomedical Advanced Research and Development Authority, or BARDA, to support the development of NUZYRA for the treatment of pulmonary anthrax.  We believe that this long-term Project BioShield agreement with BARDA, along with the approved indications for NUZYRA in CABP and ABSSSI, solidify Paratek’s position as a leader in the anti-infective space.  The magnitude of the projected funding through this BARDA agreement and the expected continued strong launch trajectory of NUZYRA will significantly strengthen Paratek’s balance sheet.”

 

“The recent news with coronavirus only further highlights the urgent need for innovative therapeutics to fight this devastating disease,” said Randy Brenner, Chief Development & Regulatory Officer.  “As with influenza, many of the coronavirus fatalities are unfortunately associated with secondary bacterial pneumonia infections, further highlighting the importance of a novel once daily well-tolerated oral and IV antibiotic in the treatment paradigm for pandemic preparedness.  With a broad-based public-private partnership established by our recently announced BARDA contract, anchored by a therapy that is approved for pneumonia, we are aggressively pursuing other opportunities within the government to support national pandemic preparedness.”    

 

NUZYRA Commercial Highlights

 

NUZYRA generated $11.5 million in net sales in the 11 months since its February 2019 launch.

 

NUZYRA generated $5.4 million in net sales in the fourth quarter of 2019, an increase of 74% versus prior quarter, driven by increases in demand.

 

Over 80% of commercial lives and greater than 50% of Medicaid lives in the U.S. now have access to NUZYRA.

 

 


 

Recent Highlights

 

BARDA awarded Paratek a 5-year contract valued at up to $285 million, with an option to extend to 10-years, to support:  1) the development of NUZYRA for the treatment of pulmonary anthrax; 2) all of the U.S. Food and Drug Administration post-marketing requirements associated with the initial NUZYRA approval; and 3) the procurement of up to 10,000 treatment courses of NUZYRA for the treatment of anthrax to be secured in the Strategic National Stockpile.

 

o

The pre-Emergency Use Authorization (EUA) for NUZYRA is targeted for submission to the FDA in the first quarter of 2020.  The purchase of the first 2,500 treatment courses will be initiated once FDA agrees the application is sufficient which is expected in the second quarter of 2020. 

 

Zai Lab Limited announced its New Drug Application for omadacycline for the treatment of CABP and ABSSSI infections has been accepted in China. 

 

o

Paratek earned $3.0 million upon this regulatory submission in the fourth quarter of 2019.  

 

o

Paratek is eligible to receive $6.0 million upon regulatory approval and royalties on net sales.

 

Paratek entered into a license grant with Almirall (ALM) for SEYSARA® (sarecycline) for the greater China region, which includes the Peoples Republic of China, Hong Kong, and Macau.  Almirall plans to develop sarecycline for acne in China, with a submission to the China National Medical Products Administration expected in 2023.  Under the terms of the agreement, Paratek will earn high single-digit royalties on net sales.  

 

Fourth Quarter and Full Year 2019 Financial Results

Paratek reported a net loss of $27.4 million, or ($0.81) per share, for the fourth quarter of 2019, compared to a net loss of $22.8 million, or ($0.71) per share, for the same period in 2018.   

 

For the year ended December 31, 2019, Paratek reported a net loss of $128.8 million, or ($3.93) per share, compared to a net loss of $112.4 million, or ($3.57) per share, for the same period in 2018.  

 

Revenue earned during the fourth quarter of 2019 of $9.0 million was attributable to U.S. NUZYRA net sales of $5.4 million and collaboration and royalty revenue of $3.6 million, which included a $3.0 million milestone earned from Zai Lab and royalties earned from SEYSARA sales in the U.S.  Revenue earned during the fourth quarter of 2018 was primarily attributable to a $12.0 million milestone earned from Almirall, LLC upon FDA approval of SEYSARA and a $5.0 million milestone earned from Zai Lab upon FDA approval of NUZYRA. 

 

Revenue earned during the year ended December 31, 2019 of $16.5 million was attributable to U.S. NUZYRA net sales of $11.5 million and royalty and collaboration revenues of $5.0 million, consisting primarily of a $3.0 million milestone payment earned in December 2019 upon submission of the first regulatory approval application for a licensed product in the People’s Republic of China and royalties earned from SEYSARA sales in the United States.  Revenue earned during the year ended December 31, 2018 of $17.0 million was primarily attributable to a $12.0 million milestone earned from Almirall, LLC upon FDA approval of SEYSARA and a $5.0 million milestone earned from Zai Lab upon FDA approval of NUZYRA. 

 

Research and development expenses were $9.1 million in the fourth quarter of 2019 compared to $11.8 million for the same period in 2018.  

 

 


 

Research and development expenses were $39.6 million for the year ended December 31, 2019, compared to $57.5 million for the year ended December 31, 2018. The $17.9 million decrease is primarily the result of the capitalization of NUZYRA commercial supply costs, which were classified as research and development expense until FDA approval of NUZYRA on October 2, 2018, partially offset by higher clinical study costs associated with our Phase 2 UTI program. 

 

Selling, general and administrative expenses were $21.3 million in fourth quarter of 2019, compared to $25.3 million for the same period in 2018. 

 

Selling, general and administrative expenses were $89.1 million for the year ended December 31, 2019, compared to $63.7 million for the year ended December 31, 2018.  The $25.4 million increase is primarily the result of the cost of our contract sales force, higher marketing, trade and distribution fees, and increased salaries, benefits and other personnel-related costs in support of the commercialization of NUZYRA. 

 

As of December 31, 2019, Paratek had $215.4 million in cash, cash equivalents and marketable securities.  

 

Financial Guidance 

Paratek also announced its full year 2020 financial guidance. This financial guidance consists of the following components:

 

 

Paratek estimates 2020 total revenues to be between $75 and $80 million.  This revenue consists of the following elements:

 

o

2020 NUZYRA U.S. net product sales is expected to be approximately $66 million with approximately $38 million of these sales coming from the initial BARDA procurement of 2,500 anthrax treatment courses.

 

The initial NUZYRA BARDA procurement is anticipated to be secured in the first half of 2020.

 

o

Royalty and collaboration revenue and BARDA grant revenue are expected to be approximately $9 to $14 million.

 

Of note, BARDA grant revenue consists of reimbursement associated with the post-marketing requirement clinical development activities, the anthrax development program and the onshoring of U.S. NUZYRA manufacturing.

 

2020 R&D and SG&A expense is expected to be approximately $140 million.

 

o

R&D expense includes approximately $5 million earmarked for start-up activities in preparation for a potential NTM registrational study.

 

o

Excluding the BARDA R&D and onshoring cost reimbursement, R&D and SG&A expense is expected to remain relatively flat when compared to 2019.

 

Based upon our current operating plan which includes estimated NUZYRA product sales, and the BARDA expense reimbursement of activities related to the Project BioShield contract, we anticipate that our existing cash, cash equivalents and marketable securities of $215.4 million as of December 31, 2019, extend our cash runway through the end of 2023 with a pathway to cash flow break even.  

 

o

This anticipated pathway assumes the Company will be able to fund all company operating expenses, anticipated capital expenditures, and debt service, including repayment in full of the Hercules Loan and Security Agreement under its existing terms.  

 

 


 

Company performance and unanticipated events could cause actual results to vary from this forward-looking guidance. 

 

Call and Webcast

Paratek’s earnings conference call for the quarter ended December 31, 2019 will be broadcast today at 4:30 p.m. EDT on February 25, 2019. The live webcast can be accessed under "Events and Presentations" in the Investor Relations section of Paratek’s website at www.ParatekPharma.com.

 

Domestic investors wishing to participate in the call should dial: 877-407-0792 and international investors should dial: 201-689-8263. The conference ID is 13699046. Investors can also access the call at http://public.viavid.com/index.php?id=138081

 

Website Information

Paratek routinely posts important information for investors on the Investor Relations section of its website at www.ParatekPharma.com. Paratek intends to use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Paratek’s website, in addition to following its press releases, U.S. Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Paratek’s website is not incorporated by reference into, and is not a part of, this document.

 

About Paratek Pharmaceuticals, Inc.

Paratek Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use.

 

The company’s lead commercial product, NUZYRA® (omadacycline), is a once-daily oral and intravenous antibiotic available in the U.S. for the treatment of adults with community-acquired bacterial pneumonia and acute bacterial skin and skin structure infections. Paratek has a collaboration agreement with Zai Lab for the development and commercialization of omadacycline in the greater China region and retains all remaining global rights.

 

Paratek exclusively licensed U.S. rights and rights to the greater China territory for SEYSARA® (sarecycline), a once-daily oral therapy for the treatment of moderate to severe acne vulgaris, to Almirall, LLC, or Almirall. Paratek retains the development and commercialization rights for sarecycline in the rest of the world.

 

In 2019, Paratek was awarded a contract from the Biomedical Advanced Research and Development Authority (BARDA) to support the development of NUZYRA for the treatment of pulmonary anthrax.

 

For more information, visit www.ParatekPharma.com or follow @ParatekPharma on Twitter.

 

 


 

Forward Looking Statements 

This press release contains forward-looking statements including statements related to our overall strategy, products, prospects, potential and expected results, including statements about the projected awareness, payor coverage, net product revenues, total revenues including assumptions related to our financial guidance, the financial impact of our BARDA contract including BARDA exercising full contract line items for procurement and PMR reimbursement, our anticipated cash runway, our operating expenses, our SEYSARA royalty-backed loan funded on May 1, 2019, the progression of our commercial roll out for NUZYRA,  our ability to shape the future treatment paradigm for community-acquired pneumonia and serious skin infections, our plans to evaluate additional indications for NUZYRA, including NTM, and to work toward an oral-only indication in CABP, future governmental stockpiling opportunities, and our potential to further drive long-term value for all of our shareholders.  All statements, other than statements of historical facts, included in this press release are forward-looking statements, and are identified by words such as "advancing," "expect," "look forward," "anticipate," "continue," and other words and terms of similar meaning. These forward-looking statements are based upon our current expectations and involve substantial risks and uncertainties.  We may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in our forward-looking statements and you should not place undue reliance on these forward-looking statements.  Our actual results and the timing of events could differ materially from those included in such forward-looking statements as a result of these risks and uncertainties.  These and other risk factors are discussed under "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2018 and our other filings with the Securities and Exchange Commission.  We expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein.

 


 

PARATEK PHARMACEUTICALS, INC.

 

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

 

 

 

 

 

As of December 31,

 

 

 

2019

 

 

2018

 

Cash, cash equivalents and marketable securities

 

$

215,379

 

 

$

292,838

 

Total assets

 

 

251,079

 

 

 

300,192

 

Working capital

 

 

219,154

 

 

 

237,534

 

Total current liabilities

 

 

24,200

 

 

 

17,709

 

Long-term debt

 

 

260,728

 

 

 

228,959

 

Common stock and additional paid-in capital

 

 

671,537

 

 

 

630,174

 

Accumulated deficit

 

 

(711,258

)

 

 

(582,468

)

Total stockholders’ equity (deficit)

 

 

(39,647

)

 

 

47,578

 

 

 

 


 

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except loss per share data)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Product revenue, net

 

$

5,415

 

 

$

 

 

$

11,517

 

 

$

 

Collaboration and royalty revenue

 

 

3,552

 

 

 

17,017

 

 

 

5,027

 

 

 

17,117

 

Net revenue

 

 

8,967

 

 

 

17,017

 

 

 

16,544

 

 

 

17,117

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

 

1,755

 

 

 

 

 

 

3,484

 

 

 

 

Research and development

 

 

9,133

 

 

 

11,802

 

 

 

39,554

 

 

 

57,508

 

Selling, general and administrative

 

 

21,261

 

 

 

25,263

 

 

 

89,135

 

 

 

63,658

 

Impairment of intangible assets

 

 

 

 

 

 

 

 

 

 

 

107

 

Changes in fair value of contingent consideration

 

 

 

 

 

(14

)

 

 

 

 

 

(71

)

Total operating expenses

 

 

32,149

 

 

 

37,051

 

 

 

132,173

 

 

 

121,202

 

Loss from operations

 

 

(23,182

)

 

 

(20,034

)

 

 

(115,629

)

 

 

(104,085

)

Other income and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

739

 

 

 

968

 

 

 

3,574

 

 

 

3,260

 

Interest expense

 

 

(4,626

)

 

 

(3,191

)

 

 

(16,403

)

 

 

(10,985

)

Other losses, net

 

 

5

 

 

 

(30

)

 

 

(31

)

 

 

(44

)

Net loss before provision for income taxes

 

 

(27,064

)

 

 

(22,287

)

 

 

(128,489

)

 

 

(111,854

)

Provision for income taxes

 

 

301

 

 

 

502

 

 

 

301

 

 

 

502

 

Net loss attributable to common stockholders

 

$

(27,365

)

 

$

(22,789

)

 

$

(128,790

)

 

$

(112,356

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per common share

 

$

(0.81

)

 

$

(0.71

)

 

$

(3.93

)

 

$

(3.57

)

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

33,789,704

 

 

 

32,143,147

 

 

 

32,791,934

 

 

 

31,513,454

 

 

 

CONTACT:

 

 

 

Investor and Media Relations:

  

 

Ben Strain

  

 

617-807-6688

  

 

ir@ParatekPharma.com

  

 

 

 

prtk-ex992_158.pptx.htm

Slide 1

Fourth Quarter & Full Year 2019 Financial Results & Corporate Update February 25, 2020 Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK): A commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use Exhibit 99.2

Slide 2

Q4 and Full Year 2019 Earnings Call Agenda Introduction Ben Strain, Vice President, Investor Relations & Corporate Communications Overview and Financial Highlights Evan Loh, M.D., Chief Executive Officer Fourth Quarter and Full Year 2019 Commercial Highlights Adam Woodrow, President & Chief Commercial Officer Pipeline and Future Value Drivers Randy Brenner, Chief Development & Regulatory Officer Q&A Also available for Q&A: Michael F. Bigham, Executive Chairman Sarah Higgins, Vice President of Finance, Controller and Principal Accounting Officer

Slide 3

Third-party industry and market information included herein has been obtained from sources believed to be reliable, but the accuracy or completeness of such information is not guaranteed by, has not been independently verified by, and should not be construed as a representation by, Paratek. The information contained in this presentation is accurate only as of the date hereof. This presentation contains forward-looking statements including statements related to our overall strategy, products, prospects, potential and expected results, including statements about the projected awareness, payor coverage, net product revenues, total revenues including assumptions related to our financial guidance, the financial impact of our BARDA contract, our anticipated cash runway, our operating expenses, our SEYSARA royalty-backed loan funded on May 1, 2019, the progression of our commercial roll out for NUZYRA, our ability to shape the future treatment paradigm for community-acquired pneumonia and serious skin infections, our plans to evaluate additional indications for NUZYRA, including NTM, and to work toward an oral-only indication in CABP, future governmental stockpiling opportunities, and our potential to further drive long-term value for all of our shareholders.  All statements, other than statements of historical facts, included in this presentation are forward-looking statements, and are identified by words such as "advancing," "expect," "look forward," "anticipate," "continue," and other words and terms of similar meaning. These forward-looking statements are based upon our current expectations and involve substantial risks and uncertainties.  We may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in our forward-looking statements and you should not place undue reliance on these forward-looking statements.  Our actual results and the timing of events could differ materially from those included in such forward-looking statements as a result of these risks and uncertainties.  These and other risk factors are discussed under "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2018 and our other filings with the Securities and Exchange Commission.  We expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein. PARATEK® and the Hexagon Logo are registered trademarks of Paratek Pharmaceuticals, Inc. NUZYRA and its design logo are trademarks of Paratek Pharmaceuticals, Inc. All other trademarks, service marks, trade names, logos and brand names identified in this presentation are the property of their respective owners. Safe Harbor Statement

Slide 4

Overview & Financial Highlights Evan Loh, M.D. Chief Executive Officer Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK): A commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use

Slide 5

Financial Highlights Full Year & Fourth Quarter 2019 Fourth Quarter 2019 Net Revenues = $9.0 million primarily driven by the launch of NUZYRA® NUZYRA net sales = $5.4 million (increase of ~74% versus 3Q 2019) Driven by increases in demand Other revenue = $3.6 million Driven by $3.0 million milestone earned from Zai Lab and royalties earned from SEYSARA Full Year 2019 Net Revenues = $16.5 million primarily driven by the launch of NUZYRA® NUZYRA net sales = $11.5 million (launched in February 2019) Other revenue = $5.0 million Driven by $3.0 million milestone earned from Zai Lab and royalties earned from SEYSARA

Slide 6

BARDA BioShield Contract A Unique Public-Private Partnership with Paratek

Slide 7

New Drug Application (NDA) Submission of Omadacycline in China Accepted by the China National Medical Products Administration (NMPA) February 2020 Zai Lab announced that NMPA has accepted its NDA for omadacycline Seeking approval for the treatment of community-acquired bacterial pneumonia and acute bacterial skin and skin structure infections Under the terms of the Zai Collaboration Agreement, Paratek is entitled to receive: A milestone payment of $6 million upon regulatory approval (anticipated in the first half of 2021) Tiered royalties at low double digit to mid-teen percentages on net revenues for sales of omadacycline in the greater China region

Slide 8

SEYSARA: Entered into a License Grant with Almirall for Greater China Region  Greater China Region: Paratek will earn high single-digit royalties on net sales in the greater China region Almirall plans to develop sarecycline for acne in China, with a potential submission to the China National Medical Products Administration in 2023 Rest of World: Paratek and Almirall also finalized a license granting Paratek exclusive rights to develop, manufacture and commercialize saracycline outside the of the U.S.   Paratek will share with Almirall any potential revenues of sarecycline outside of the U.S. and greater China region

Slide 9

Condensed Consolidated Statements of Operations (unaudited)  (in thousands, except loss per share data) 

Slide 10

Paratek 2020 Financial Guidance Revenue Guidance Note NUZYRA US Net Product Revenue ~$66M ~$38 million of these sales coming from the initial BARDA procurement of 2,500 anthrax treatment courses The initial NUZYRA BARDA procurement is anticipated to be secured in the first half of 2020 Royalty and Collaboration Revenue and BARDA Grant Revenue $9M to $14M BARDA grant revenue consists of reimbursement associated with the post-marketing requirement clinical development activities, the anthrax development program and the onshoring of U.S. NUZYRA manufacturing 2020 Total Revenue $75M to $80M R&D and SG&A expense ~$140M Excluding the BARDA R&D and onshoring reimbursement, R&D and SG&A expense is expected to remain relatively flat when compared to 2019 R&D expense includes approximately $5 million earmarked for the start-up activities in preparation for a potential NTM registrational study

Slide 11

Strong Balance Sheet and Cash Runway Guidance as of December 31, 2019 Key Metrics (unaudited) 12/31/19 balance Total Cash, Cash Equivalents, and Marketable Securities $215.4 million Long-term Debt Obligation3 $260.7 million Basic Shares Outstanding 39,827,749  Total Potentially Dilutive Securities1 16,821,484 Includes common stock issuable under the April 2018 convertible debt offering, options, restricted share units, warrants, and for our ESPP Assumes estimated NUZYRA US Product revenue, BARDA reimbursement of activities related to Project Bioshield contract. Company will be able to fund all company operating expenses, anticipated capital expenditures, and debt service, including repayment in full of the Hercules Loan and Security Agreement under its existing terms Includes $30.6 million of debt secured by and repaid based upon royalties on U.S. SEYSARA sales. Cash runway projected through 2023 with a pathway to cash flow breakeven2

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Fourth Quarter 2019 Commercial Highlights Adam Woodrow President & Chief Commercial Officer Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK): A commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use

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NUZYRA Attributes Provide A Modern-Day Solution Addressing Bacterial Resistance and the Needs of Today’s Healthcare Systems NUZYRA is a once-daily oral and IV broad spectrum antibiotic Community Acquired Bacterial Pneumonia (CABP) Acute Bacterial Skin & Skin Structure Infections (ABSSSI) High and durable clinical efficacy with favorable safety and tolerability Addresses antibiotic resistance which today is causing clinical failures with older generic antibiotics Continuity of care: Once-daily IV to oral NUZYRA has the potential to minimize hospital stay Oral only indication(s) has the potential to avoid hospitalization all together

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NUZYRA U.S. Launch Underway Generated $11.5 million in Net Sales in 2019 Launched in the U.S. in February 2019 With particular strength seen with the oral formulation, NUZYRA is on track to have one of the most successful antibiotics launches in last decade NUZYRA generated $5.4 million in net sales in the U.S. in the fourth quarter compared to $3.1 million seen in the third quarter, an increase of 74% Accounting for inventory, NUZYRA demand increased from approximately $3.3 million in the third quarter to approximately $6.1M in the fourth quarter of 2019; an increase of 85% versus prior quarter Growth in the fourth quarter was driven by demand as inventory in the channel remained essentially flat Achieved institutional access in ~ 60% of the 600 plus targeted hospitals as of Q4 2019 Through Q4 2019, over 80% of commercial lives and greater than 50% of Medicaid lives in the U.S. now have access to NUZYRA

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Pipeline and Future Value Drivers Randy Brenner Chief Development & Regulatory Officer Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK): A commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use

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First-ever Bioshield award for an antibiotic for the Strategic National Stockpile Paratek was the sole recipient Valued at up to $285 million over 5 years, with potential for extension up to 10 years $77 million in reimbursement for all existing post-approval obligations $54 million for anthrax development & U.S. onshoring of manufacturing $153 million purchase of NUZYRA for the Strategic National Stockpile BARDA Project BioShield Contract Awarded To Paratek Unique & Transformative Opportunity Enabling Long-term Growth

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Paratek / BARDA Milestones Events Timing Value Comments BASE AWARD Treatment of Anthrax Development Program Deb 2019 ~$20M Anthrax Development Initiated Execute Purchase of Initial 2,500 Treatment Courses for BARDA Project BioShield Q2 2020 ~$38M Product Placed on VMI for SNS IMPORTANT MILESTONES First Invoice Sent to BARDA Feb 2019 Invoice Received Submit Pre- Emergency Use Authorization Designation for NUZYRA in anthrax Q1 2020 Target End February 2020 Initiate Funding for FDA Post Marketing Requirements Including CABP and Pediatric Studies Q2 2020 ~$77M Cost reimbursement initiates Initiate Funding for Manufacturing Security-Related Requirements and Onshoring Q2 2020 ~$20M Cost reimbursement initiates Initiate Dosing on Animal Anthrax Studies 2H2020 Procurement of Second 2500 Treatment Courses 1H 2021 ~$38M Product Purchased for SNS Supplemental Animal Development (e.g. prophylaxis) 2H 2021 ~$13M Initiate Animal Work Procurement of Third 2500 Treatment Courses 1H 2022 ~$38M Product Purchased for SNS Procurement of Fourth 2500 Treatment Courses 1H 2023 ~$38M Product Purchased for SNS

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Paratek Pipeline Research Preclinical Phase 1 Phase 2 Phase 3 Registration Marketed in the U.S. Commercial Rights SEYSARA® (sarecycline) (U.S.+) (ex-U.S.) ABSSSI (IV & Oral) – QIDP CABP (IV & Oral) – QIDP Inflammatory Acne (Acne Vulgaris) *We have entered into a collaboration agreement with Zai Lab (Shanghai) Co., Ld., for the greater China region +We have entered into a license agreement with Almirall for the greater China region ABSSSI (Oral-only ) – QIDP Biodefense Pathogens (Anthrax) NUZYRA® (omadacycline) 100mg for injection & 150mg tablets FDA Animal Rule Applies CABP PK Study for Oral-only Labelling  *

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NTM (M. abscessus) Rare Disease Opportunity Potential $740 Million Addressable Market by 2028 NTM (M. abscessus) Opportunity with Once Daily Oral Therapy = X = >75%(2) Fail triple generic Tx ~4,760 patients $155,420(3) per course $740M opportunity (1) Assumes 2028 NTM incidence of 72k, of which 9% is M. abscessus species. Strollo, “The Burden of Pulmonary NTM in the U.S.”, AnnalsATS Vol 12;10, 2015. Lee, “Mycobacterium abscessus Complex Infections in Humans”, EmergingInfDis, Vol 21;9, 2015. (2) Am J Respir Crit Care Med Vol 175. pp 367–416, 2007 (“no antibiotic regimens based on in vitro susceptibilities has been shown to produce long-term sputum conversion for patients with M. abscessus lung disease. The goal of 12 months of negative sputum cultures while on therapy may be reasonable, but there is no medication strategy to reliably achieve this goal”) (3) 135 DOT in initial Tx to clear infection. Assuming success, avg 274 DOT (recommendation for 12mo of Tx after 3 negative cultures; assumes 75% compliance); $380 avg cost/day - blend of IV ($345/DOT) and Oral ($395/DOT) 6,300(1) M. abscessus yearly incidence No approved therapies Triple antibiotic therapy approaches are most common Most Agents IV only Nearly 80% failure rate with existing treatments Long treatment duration typically 12-24 months

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Nontuberculous mycobacteria or “NTM” Potential Opportunity with Omadacycline Prevalence of All NTM 70,000 – 80,000 NTM cases in the U.S. 5-10% year-over-year increase in prevalence 5 year all-cause mortality 40% Paratek focused on subset of NTM patients (~6,000-8,000) with Mycobacterium abscessus Currently, no approved antibiotic therapies Radiographic Hallmarks Omadacycline Tigecycline Pulmonary Pharmacokinetics of Omadacycline and Tigecycline Gotfried MH, et al. Antimicrob Agents Chemother 2017; 61:e01135-17..

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Q&A Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK): A commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use

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Closing Remarks Evan Loh, M.D. Chief Executive Officer Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK): A commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use

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Paratek is Well-Positioned for Future Growth Focused on Execution + New Value Creation Near-term Execution Future Value Creation Advance NUZYRA® U.S. Launch Disciplined Operating Expense Management Capitalize on Project BioShield Opportunity NUZYRA in Nontuberculous Mycobacteria or “NTM” Oral-only dosing regimen for NUZYRA in CABP Product / Pipeline Expansion NUZYRA® 100mg for injection & 150mg tablets