Why Matinas BioPharma Stock Is Sinking Today

BioNTech SE BNTX and Matinas BioPharma Holdings Inc MTNB have ended an mRNA-based collaboration. Matinas reported the update in its Q1 earnings release.

The exclusive collaboration with BioNTech was announced just a year ago, with BioNTech paying Matinas an undisclosed amount in exchange for access to Matinas' lipid nanocrystal (LNC) drug delivery platform. 

BioNTech had also paid Matinas an upfront access fee. The company said that in May 2023, the initial in vivo study of an oral mRNA delivery formulation conducted in collaboration with BioNTech did not demonstrate oral preclinical activity.

This single study, conducted in healthy mice, involved oral administration of a unique, proprietary, non-LNC formulation of BioNTech-supplied reporter mRNA (firefly luciferase).

"Our initial in vivo study of oral mRNA delivery, which was based upon encouraging early in vitro results, and conducted with our collaborator BioNTech, did not demonstrate preclinical activity. While disappointing, we recognize that this was an ambitious goal for a first in vivo study of a new, unique mRNA formulation, where, to date, no delivery technology has been successful in achieving oral delivery of mRNA. We are pleased these formulations showed activity when administered systemically in other internal studies, in addition to demonstrating prolonged stability out to 17 weeks at 4° Celsius," commented Jerome Jabbour, CEO of Matinas.

Following the expiration of the exclusive agreement with BioNTech in April 2023, Matinas' collaborative research program with National Resilience was expanded to focus on in vitro and in vivo delivery of mRNA.

Specifically, National Resilience and Matinas will collectively focus on reporter and therapeutic oligonucleotide delivery, both in vitro and in vivo, against reference LNPs. Initial data is expected in Q3 of 2023.

Price Action: MTNB shares are down 29.1% at $0.48 on the last check Thursday.