Maxim Group lowered its price target for Matinas BioPharma (NYSE American:MTNB) to $4 from $6, citing dilution from the company’s next financing. The stock closed at 68 cents on April 20.
Analyst Jason McCarthy writes that revised price target still offers “significant upside from the current level.”
Data for MAT2203 has been “positive, both in terms of efficacy and safety; the latter for an anti-fungal like amphotericin is critical,” he said, adding that the next step is getting to a Phase 2 study in leukemia patients, which could serve as a pivotal study in 2019, but it will take time and capital. We estimate the company … may need to raise capital soon,” he added.
Mr. McCarthy said the stock price has pulled back to the lower end of the 52-week range, from a peak of $3.20 last June because of a lack of catalysts, not fundamentals.
The company has met with the FDA and has a path forward with MAT2203 as a prophylaxis agent to prevent infection in high-risk patients (i.e. leukemia), which has always been the goal.
“We expect the company to start the trial in early 2019, and right now is traversing a data trough, with catalysts waiting on the other side,” he said. For the remainder of 2018, “we expect incremental catalysts, including publications, presentations at the European Congress of Clinical Microbiology and Infectious Diseases,and potential partnerships for the cochleate technology. Overall, our thesis and positive outlook on the company remains unchanged.”
