Matinas BioPharma has halted all product development activities and fired 80% of its staff, including three members of senior management, in an effort to save resources after the partnership negotiations for its lead antifungal therapy were terminated.
The company noted that the workforce reductions would occur with immediate effect.
According to a Matinas press release, the company’s board is evaluating all alternatives, including the asset sale of MAT2203 (oral formulation of amphotericin B) and the potential wind-down and dissolution of the company.
The company’s stock took a nosedive following the news. It is currently trading at $0.67, down by 65.2% compared to the market close yesterday (30 October). Martinas BioPharma’s market cap currently stands at $3.5m, with the company reporting cash reserves of $14.3m as of 30 June, as per the company’s Q2 financials.
In August, Martinas reported that it had signed a non-binding term sheet for global licensing rights to MAT2203 for all future treatment indications. The company did not disclose the partner's name or the financial details of the deal, only that it was preparing to start a Phase III registrational trial for the therapy following the partnership announcement. The study was expected to evaluate the therapy as an oral step-down monotherapy for patients with invasive aspergillosis following treatment with AmBisome (liposomal amphotericin B).
MAT2203 was designed using the company’s lipid nanocrystal (LNC) platform to overcome the safety and toxicity limitations of intravenous amphotericin B. Despite being indicated to treat invasive fungal infections, intravenous amphotericin B is known to be toxic to kidneys and liver, with approximately 80% of patients developing infusion-related adverse effects or nephrotoxicity.
Although there is an increased need for antimicrobial therapies, the field has not seen much success in recent years. Spero Therapeutics’ prodrug antibiotic SPR720 failed to meet the primary endpoint in a Phase IIa trial in patients with non-tuberculous mycobacterial pulmonary disease. AN2 Therapeutics also had to suspend development for its lead antibiotic, epetraborole, after it failed to show efficacy in the Phase II/III trial (NCT05327803).
Itreum Therapeutics was able to receive approval from the US Food and Drug Administration (FDA) for its antibiotic Orlynvah (sulopenem etzadroxil and probenecid) for treating uncomplicated urinary tract infections (uUTIs). The agency approved the therapy’s use for treating uUTIs caused by E. coli, Klebsiella pneumoniae or Proteus mirabilis in women who have limited or no alternative antibacterial treatment options.
