Matinas BioPharma considers closure after antifungal deal collapse

Matinas BioPharma has announced a significant downsizing and cessation of all product development activities after the termination of negotiations for a key partnership regarding their lead antifungal therapy, MAT2203. This decision has led to the immediate dismissal of 80% of the company's workforce, including three senior management members, in an attempt to conserve resources.

The company's board of directors is actively exploring various options, including the possible sale of MAT2203, an oral formulation of amphotericin B, as well as considering the potential wind-down and dissolution of the company. This move has had a severe impact on Matinas BioPharma's stock, which plummeted to $0.67, a 65.2% drop from the previous day's closing price. The company now has a market capitalization of $3.5 million and reported cash reserves of $14.3 million as of June 30, based on their second-quarter financial reports.

In August, Matinas BioPharma had announced the signing of a non-binding term sheet for the global licensing rights to MAT2203 for all future treatment indications. However, the details of the partnership, including the partner's identity and the financial specifics, were not disclosed. The company had been preparing to initiate a Phase III registrational trial for MAT2203 as an oral step-down monotherapy for patients with invasive aspergillosis, following initial treatment with AmBisome, a liposomal amphotericin B.

MAT2203 was developed using Matinas BioPharma's lipid nanocrystal (LNC) platform, designed to mitigate the safety and toxicity concerns associated with intravenous amphotericin B, such as nephrotoxicity and liver toxicity, which affect approximately 80% of patients. Despite the critical need for new antimicrobial therapies, the field has faced numerous challenges and limited success. For instance, Spero Therapeutics' SPR720, a prodrug antibiotic, failed to achieve its primary endpoint in a Phase IIa trial for patients with non-tuberculous mycobacterial pulmonary disease. Similarly, AN2 Therapeutics had to halt the development of their lead antibiotic, epetraborole, after it did not demonstrate efficacy in a Phase II/III trial.

Conversely, Itreum Therapeutics has made some progress, receiving approval from the US Food and Drug Administration (FDA) for their antibiotic Orlynvah (sulopenem etzadroxil and probenecid) for treating uncomplicated urinary tract infections (uUTIs). This approval pertains to the treatment of uUTIs caused by specific bacteria such as E. coli, Klebsiella pneumoniae, or Proteus mirabilis, particularly in women who have few or no alternative antibacterial treatment options.

Despite the setbacks faced by Matinas BioPharma and other companies in the antimicrobial therapy sector, the need for effective treatments remains high. The future of MAT2203 and Matinas BioPharma's other assets now hinges on the decisions made by the company's board as they navigate these challenging circumstances.