Please ensure Javascript is enabled for purposes of website accessibility

Why Matinas BioPharma Stock Crashed Today

By Keith Speights - Updated Feb 1, 2021 at 4:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company reported disappointing clinical results.

What happened

Shares of Matinas BioPharma Holdings (MTNB 3.77%) were crashing 32.7% lower as of 3:01 p.m. EST on Monday. The steep decline came after the company announced disappointing results from a phase 2 clinical study of Lypdiso in reducing triglycerides.

So what

Matinas had good news and bad news. The good news was that Lypdiso beat Amarin's (AMRN -0.68%) Vascepa in increasing eicosapentaenoic acid (EPA) levels in study participants' blood. It wasn't even close, with Lypdiso demonstrating a 46% increase in EPA from baseline compared to Vascepa.

Clipboard with sheet of paper listing triglyceride levels, next to pens, stethoscope,  book, and eyeglasses.

Image source: Getty Images.

But the bad news was what concerned investors. The primary endpoint of the late-stage study was percent change from baseline in triglyceride levels. Matinas hoped to show that Lypdiso was the hands-down winner versus Vascepa. Nevertheless, Lypdiso failed to achieve this primary endpoint. 

Despite this failure, patients taking Lypdiso did have lower triglyceride levels than patients taking Vascepa did. The relative improvement wasn't statistically significant, however. 

Now what

Can the biotech stock recover after today's big sell-off? Perhaps. Matinas hopes to find a partner to work with on a pivotal late-stage study of Lypdiso. CEO Jerome Jabbour said the company's management believes the phase 2 data "point to the potential for robust cardiovascular risk reduction" with Lypdiso.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Matinas BioPharma Holdings, Inc. Stock Quote
Matinas BioPharma Holdings, Inc.
MTNB
$0.68 (3.77%) $0.02
Amarin Corporation plc Stock Quote
Amarin Corporation plc
AMRN
$1.46 (-0.68%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.