JPM Meeting Notes – Matinas Biopharma (MTNB)

In my pervious commentary on Matinas Biopharma (MTNB) called the company one of my best ideas for 2017. That certainly did not change after my meeting with management. My conversations with the company focused on the ongoing warrant exchange and timelines for some of the very important ongoing clinical studies.

To review, there are currently two Phase 2 studies ongoing with MAT-2203, an oral formulation of the antifungal agent amphotericin B for invasive fungal infections (IFI). A third study is expected to begin shortly. One of these studies is a Phase 2a program taking place at the NIH. I expect results from this study will be announced in the second quarter 2017. Data from the larger vulvovaginal candidiasis (VVC) Phase 2 study will likely be out around the middle of the year. With MAT-2501, an oral formulation of the antibiotic, amikacin, a recently initiated Phase 1 study is likely to offer data early in the second quarter 2017. These results will primarily provide dosing, pk, and tolerability data to management that will help them design the next wave of studies with MAT-2501, but the results are very important nevertheless because the data should help prove that Matinas’ cochleate technology works as expected.

With respect to the warrant exchange, while management was not providing any specific guidance, it does sound like things are progressing nicely and I am hoping the company will be able to pull in over half of the total cash opportunity (note – there are roughly 36 million warrants at $0.50 so full exchange would pull in roughly $18 million). The offer expires on Friday. Pulling in a good chunk of cash and removing warrant overhang is a big win for the company because it not only keeps the pipeline moving forward but also facilitates an uplist to a major exchange in shortly thereafter.

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