Matinas BioPharma(MTNB) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a net loss attributable to common shareholders of approximately $5.8 million or $0.03 per basic and diluted share for Q2 2020, compared to a net loss of approximately $3.6 million or $0.03 per basic and diluted share for the same quarter in the previous year [49] - Research and Development expenses increased to approximately $3.4 million in Q2 2020 from approximately $2.8 million in the same quarter last year, primarily due to higher clinical development expenses related to MAT9001 and MAT2203 [50] - General and administrative expenses rose to approximately $2.4 million in Q2 2020 from approximately $1.8 million in the same quarter last year, mainly due to higher compensation expenses associated with planned increased headcount [51] - The company ended Q2 2020 with approximately $68 million in cash, cash equivalents, and marketable securities, compared to approximately $27.8 million at year-end 2019, reflecting net proceeds of approximately $46.7 million from a public offering completed in January [52] Business Line Data and Key Metrics Changes - The ENHANCE-IT study of MAT9001 is nearing completion of enrollment, with over 90 out of 100 patients randomized and dosed to date, expecting to complete enrollment in August and have top-line data available early in Q1 2021 [13][14] - The EnACT study of MAT2203 has resumed enrollment after a temporary pause due to the pandemic, with several patients already randomized and dosed in the first cohort [25] Market Data and Key Metrics Changes - The company noted that the approval of a second generic Vascepa could impact the market, but emphasized that if MAT9001 demonstrates superiority over placebo, it could still be successful despite generic competition [65][68] Company Strategy and Development Direction - The company aims to leverage its lipid nano-crystal (LNC) platform delivery technology to develop multiple therapies, emphasizing the potential of MAT2203 for treating invasive fungal infections and the importance of the EnACT study [17][20] - The company is also pursuing MAT2501, an oral formulation of amikacin, to address chronic bacterial infections, with an application for funding submitted to the Cystic Fibrosis Foundation [35][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for MAT9001 and MAT2203, highlighting the importance of upcoming data readouts and the company's strong financial position to support operations into the first half of 2023 [53][54] - The management acknowledged the challenges in antifungal drug development and the need for safer alternatives like MAT2203, emphasizing the company's commitment to addressing these challenges [58][61] Other Important Information - The company is maintaining progress across collaborations, particularly with Genentech, and is exploring the potential application of its LNC platform for COVID-19 therapies [42][48] Q&A Session Summary Question: Challenges in antifungal development - Management highlighted a lack of focus and investment in antifungal drug development, emphasizing the need for new therapies and the challenges of conducting studies in life-threatening infections [58][60] Question: Impact of generic Vascepa on MAT9001 - Management noted that while generic competition could affect pricing, demonstrating MAT9001's superiority could lead to its success in the market [65][68] Question: Clinical significance of ENHANCE-IT study - Management indicated that the ENHANCE-IT study is powered to show a clinically meaningful 10% delta in triglyceride reduction compared to Vascepa [72] Question: Timing of End-of-Phase 2 meeting - Management confirmed that the End-of-Phase 2 meeting with the FDA is expected to occur imminently within Q3 2020 [78] Question: Potential adjustments to pivotal study designs - Management acknowledged the possibility of adjusting study designs based on market conditions and FDA discussions, but emphasized confidence in the current path [86][89]