E Matinas Biopharma Is Highly Undervalued

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After speaking directly with Matinas Biopharma CEO, Jerome Jabbour, to get the facts on MTNB, I've determined the company is a very interesting biotech with a few aspects to it. Most notably is its main program which is a next-generation omega-3 prescription drug (MAT9001) being developed to treat patients with severe hypertriglyceridemia (patients with triglyceride levels that at ≥ 500 mg/dL) as an initial indication and the potential to also treat patients with elevated triglycerides, which would increase the addressable patient population to approximately 70 million patients in the US alone.

MAT9001 has already demonstrated a superior profile vs. a competing drug known as Vascepa® developed and sold by Amarin Pharmaceuticals (AMRN). While this biotech has MAT9001 as its main clinical product, it does have another distinct and interesting pipeline that is capitalizing on its proprietary lipid nano-crystal drug delivery platform (learn more here).

In viewing the competitive landscape and products, it seems that MTNB is significantly undervalued at its current low market cap. I find a good opportunity here because despite all the progress it has made to date, it still has a low stock price of $0.69 cents per share and an upcoming twelve to eighteen month period full of value-creating catalysts and opportunities for significant value appreciation. 

In reviewing the regulatory and clinical development strategy set forth by the company, it appears that MAT9001 has a clear path to FDA approval in severe hypertriglyceridemia and that the opportunity for label expansion beyond that is very promising and real. In particular, it has a 505(b)(2) pathway toward marketing approval in the United States for severe hypertriglyceridemia (≥500 mg/dL). It can utilize this streamlined pathway and still receive the benefit of five years of NCE exclusivity, which is an important value proposition. No outcomes study is required for this indication and its entirely possible that no outcomes study of MAT9001 will be required for label expansion either, following the release of Vascepa’s outcomes data over the past year. That data, and data from another ongoing outcomes study of an omega-3 drug called Epanova by AstraZeneca, are setting this up to be a potential new class of drugs to prevent and treat cardiovascular disease, much like the statin market.MAT9001 was specifically developed to treat these cardiovascular risks, including hypertriglyceridemia and dyslipidemia.

MAT9001 has several key advantages over other existing omega-3 type drugs for this indication. Consider that MAT9001 is an EPA + DPA formulation. The DPA found in Matinas’ drug gives it an advantage with higher potency and a unique mechanism of action. This is important in order to differentiate itself compared to the other drugs of the same class. Vascepa is just EPA. Lovaza and Epanova are other omega-3 drugs that are a mix of EPA and DHA. This is a lot to take in but the bottom line here is that DHA mixed into these Omega-3’s is not good. That’s because DHA is associated with an increase in bad cholesterol (LDL-C).

MAT9001 holds one more important advantage over these other omega-3 drugs. It’s molecular form is that of a free fatty acid, which makes this drug much more bioavailable than Amarin’s Vacepa. In the head to head study of MAT9001 vs. Vascepa, MAT9001 was able to achieve 5x the blood levels of EPA as did Vascepa in the exact same patients. This is very important when you consider the data from Vascepa’s outcomes trial. It bodes very well for MAT9001’s prospects in those same types of patients. In other words, the absorption with MAT9001 is superior over the other Omega-3s. How this drug compares to the others depends on data and the data that has been generated to date highlights that MAT9001 is positioned to be the best-in-class omega-3. I’m pleased to see that Matinas has been making significant progress in the clinic and positioning MAT9001 for some compelling data releases in 2020. 

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Disclosure: This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their time, and ...

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Ayelet Wolf 10 months ago Member's comment

#Matinas looks impressive. Worth taking a deeper dive into this company.

Dick Kaplan 10 months ago Member's comment

I agree that $MTNB is undervalued. There is a good buying opportunity here.

Beating Buffett 10 months ago Member's comment

$MTNB sounds like they have a real advantage over the competition.

Anonymous Leo 10 months ago Member's comment

They don’t have enough cash to fund their developments beyond phase 2. They have no permanent inflow of cash. They will need a lot more cash, time and luck to get their early stage products tested and approved. Phase 3 studies are more expensive and take more time.

There is a cash problem in the long term. They will have to raise more funds.

Bill Johnson 10 months ago Member's comment

What's with your dislike of $MTNB? I found the article to be quite impressive.

Anonymous Leo 10 months ago Member's comment

The article is one sided and a rehash of managements’ talking points just prior to their presentation. I am pointing out there is more to consider.

Anonymous Leo 10 months ago Member's comment

The article failed to mention how one of the LNCs (MAT2203) did not perform as well as the current treatment for VVC in a phase 2 study.


Susan Miller 10 months ago Member's comment

Perhaps the CEO, Jerome D. Jabbour, can comment on this.

Adam Reynolds 10 months ago Member's comment

I would say the article is primarily focused on MAT9001.

Anonymous Leo 10 months ago Member's comment

The claims of the benefits of DPA have not been proven.


Additionally how much DPA is in MAT9001? Management does not disclose this. However if you look at the patent, it is mostly EPA with a little DHA and a little DPA.

Research has also found the body can convert EPA to DPA.

Combined I find management’s comments on DPA to be suspect.

Daniel Robertson 10 months ago Member's comment

Thanks, can you elaborate on the significance of this?

Anonymous Leo 10 months ago Member's comment

Management claims that DPA gives their drug an advantage. However it has not been proven to.

Daniel Robertson 10 months ago Member's comment

They must have based that on something though. Companies can't just make sh*t up.