REG - Malin Corp PLC - 2024 Full Year Results & Notice of AGM

MalinAnnouncement

19/02/2025 07:00

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RNS Number : 5925X  Malin Corporation PLC  19 February 2025

Malin Corporation plc

 

2024 Full Year Results and Notice of 2025 AGM

 

·    Estimated intrinsic equity value per share was €10.36 at 31
December 2024 and €10.75 at 17 February 2025

·    Malin generated cash proceeds of approximately €133 million via the
divestment of its interests in CG Oncology and Poseida

·    Proposed return of capital of up to €150 million by way of a tender
offer launched today

·    Malin's AGM will be held on 13 March 2025, immediately followed by
its EGM to vote on tender offer resolutions

 

Dublin-Ireland, 19 February 2025: Malin Corporation plc (Euronext Growth
Dublin:MLC) ("Malin", the "Company"), a company investing in highly innovative
life sciences companies, today publishes its full year results and annual
report for the year ended 31 December 2024. Malin today also announces that
the Letter from the Chair, Notice of Annual General Meeting ("AGM") and Form
of Proxy have been issued to shareholders.

 

Fiona Dunlevy, Chief Executive Officer, said:

 

"2024 was a year of strong progress by Malin, during which we successfully
executed on our strategy of seeking to maximise value from our investee
companies and we continue to deliver on our commitment to return capital to
shareholders. We are delighted to now proceed with a return of capital of up
to €150 million by way of tender offer launched today.

Having supported Poseida since first leading their Series A round, the recent
sale to Roche represented a pivotal point for Malin in the execution of our
strategy. The transaction came on the back of significant clinical progress
made by Poseida through 2024 and Malin continues to retain a valuable interest
in their technology by way of its contingent value right. "

Estimated intrinsic equity value

 

·    Malin's intrinsic equity value at 31 December 2024 was estimated to
be €10.36 per share, or €195.6 million and is arrived at by taking the
aggregate fair value of our investee company holdings in accordance with the
International Private Equity and Venture Capital Valuation ("IPEV") Guidelines
and adjusting this value for Malin's corporate cash balance. For the purpose
of that calculation, the fair value of Poseida at 31 December 2024 was based
on the company's closing share price on that date.

 

·    Malin's estimated intrinsic equity value at 17 February 2025 has
increased to €10.75 per share, or €202.9 million as a result of the
aggregate impact of an increase in its cash balance following the receipt of
the Poseida sale proceeds and the fair value estimate of Malin's contingent
value right ("CVR") linked to this transaction.

 

Fair value of investee companies

 

·    The aggregate fair value of Malin's interests in its investee
companies was €133.5 million at 31 December 2024 compared to €94.4
million at 31 December 2023. The increase in the aggregate fair value during
2024 is largely due to the increase in the Poseida share price during the
year, partially off-set by reductions in the fair value estimates of Malin's
interests in Viamet, Kymab and Xenex and the divestment of Malin's interest in
CG Oncology.

 

·    The aggregate fair value of Malin's interests in its investee
companies reduced to €36.9 million as at 17 February 2025 as a result of
the divestment of its shareholding in Poseida in the period. Malin has
estimated the fair value of its CVR linked to the Poseida sale to be
approximately €13 million at 17 February 2025.

 

Cash Position

 

·    Malin's corporate cash balance at 31 December 2024 was approximately
€62.1 million compared to €29.3 million at 31 December 2023.

 

·    The increase in Malin's cash balance over this period is primarily as
a result of the disposal of CG Oncology in July 2024, generating proceeds of
approximately €28.5 million, and the receipt of a milestone-related payment
of €6.5 million related to the 2021 sale of Kymab to Sanofi.

 

·    Malin's cash balance at 17 February 2025 was approximately €166.0
million, having increased since 31 December 2024 as a result of the receipt of
proceeds of €104.2 million from the disposal of Poseida in January 2025.

 

·    As announced separately today, Malin is pleased to launch a return of
capital of up to approximately €150 million by way of tender offer. Full
details of the tender offer are available on the company's website
www.malinplc.com.

 

Investee Company Highlights

 

Poseida

·    On 8 January 2025, Poseida was acquired by Roche at a price of $9.00
per share in cash at closing, plus a CVR to receive certain contingent
payments of up to an aggregate of $4.00 per share in cash upon the achievement
of specific future milestones. Malin owned approximately 12% of Poseida and
received approximately $106.5 million of upfront consideration in January
2025, with the potential to receive up to a further $47.3 million through its
CVR on the achievement of specific milestones. Malin has estimated the fair
value of its CVR to be approximately €13 million at 17 February 2025.

 

·    Roche's acquisition of Poseida follows a year of important progress
by Poseida across its clinical and pre-clinical cell therapy pipeline during
2024. In September 2024, Poseida presented clinical data from its Phase 1
trial of its lead programme P-BCMA-ALLO1 in patients with relapsed/refractory
multiple myeloma demonstrating an impressive overall response rate and
compelling safety results in heavily pretreated patients in an optimised
lymphodepletion arm. The ongoing P-BCMA-ALLO1 Phase 1/1b trial is enrolling
patients using the optimised lymphodepletion regimen.

 

·    Poseida also commenced enrolment in 2024 in a Phase 1 trial of its
P-CD19CD20-ALLO1 dual CAR-T program targeting CD19 and CD20 for the treatment
of B-cell malignancies. Both of these programs were being developed as part of
the collaboration with Roche first announced in August 2022.

 

CG Oncology

·    On the back of its significant development progress with
cretostimogene grenadenorepvec, its intravesically delivered oncolytic
immunotherapy agent, CG Oncology completed the first biotech IPO of 2024 in
January, raising $437 million at an IPO price per share of $19.

 

·    In July 2024, Malin completed the divestment of its entire interest
in CG Oncology at an average price of $33.44 per share and generating
aggregate cash proceeds of approximately €28.5 million. Malin determined
that the realisation of value at the prevailing market prices represented an
optimal value inflection point for Malin. Having initially invested in CG
Oncology in September 2022, Malin generated a 175% gain on its total capital
invested of approximately €10.3 million.

 

Xenex

·    Through 2024, Xenex has faced challenges in seeking to drive
improvements in its sales performance while maintaining cost efficiencies and
a disciplined approach to the deployment of capital. The challenging
macroeconomic situation facing hospitals in the US has proven a major headwind
and the company continues to explore initiatives to expand sales channels
despite these challenges. The FDA authorisation granted to Xenex's
LightStrike™ device has the potential to serve as a competitive
differentiator and as a barrier to entry for competing products but this has
not yet translated into a meaningful uplift in sales revenue.

 

·    Malin believes 2025 will be a pivotal year for Xenex  as its seeks
to capitalise on its unique position as the only FDA-approved UV robot, whilst
managing its capital position to best deliver value to its long-term
shareholder base, including Malin.

 

Kymab

·    In February 2024, Malin received €6.5 million by way of the first
milestone-related contingent payment linked to the 2021 sale of Kymab to
Sanofi.

 

·    At 31 December 2024, Malin estimates that the maximum remaining
consideration which Malin could receive equates to $7 million and the fair
value estimate of Malin's share of the contingent consideration amounted to
€2.2 million.

 

Viamet

·    In April 2022, Mycovia, the successor company to Malin's investee
company Viamet, announced the approval from the FDA of VIVJOA™
(otesecanazole) for the treatment of Recurrent Vulvovaginal Candidiasis
("RVVC") in females with a history of RVVC and who are not of reproductive
potential. Additional studies are being performed for submission to the FDA,
with the aim of gaining regulatory approval to extend the targeted patient
population. However, the need to complete this additional development work has
curtailed or delayed commercial launches of the drug in the US and other
markets thereby impacting the milestones and royalties that may have become
payable to Viamet in the near-term.

 

·    As a result, the fair value estimate of Malin's interest in Viamet,
which is based on a discounted cashflow model, has been reduced in the year to
31 December 2024. An unfavourable outcome to Mycovia's efforts to extend the
patient population for VIVJOA™ could materially impact the Company's fair
value estimate of its interest in Viamet.

 

Annual Report

 

Malin's 2024 Annual Report and further information on Malin is available to
view on Malin's website at www.malinplc.com (http://www.malinplc.com/) ,
under the Investors' section.

 

2025 AGM

 

The Letter from the Chair, Notice of Annual General Meeting and Form of Proxy
have been issued to shareholders.  Copies of all documents relating to the
AGM are also available on the Company's website at www.malinplc.com
(http://www.malinplc.com) .

Malin's 2025 AGM will be held in the Conrad Dublin Hotel, Earlsfort Terrace,
Dublin 2, D02 V562, Ireland at 10:15 a.m. GMT on Thursday, 13 March 2025.

The Notice of AGM sets out the resolutions to be proposed at the AGM and the
processes by which shareholders may vote in connection with the AGM.

ENDS

 

About Malin Corporation plc

 

Malin (Euronext Growth Dublin:MLC) is a company investing in highly innovative
life sciences companies. Its purpose is to create shareholder value through
the application of long-term capital and operational and strategic expertise
to a diverse range of global healthcare businesses. Malin has a focus on
innovative businesses underpinned by exceptional science and works with its
investee companies, providing strategic and financial support to enable them
to reach their value potential. Malin is headquartered and domiciled in
Ireland and listed on the Euronext Growth Dublin. For more information
visit www.malinplc.com (http://www.malinplc.com/) .

For further information contact:

 

Malin

Fiona Dunlevy, CEO/ Company Secretary

Tel: +353 (0)1 901 5700

cosec@malinplc.com (mailto:investorrelations@malinplc.com)

 

Davy Corporate Finance (Euronext Growth Listing Sponsor & Broker)

Brian Garrahy / Daragh O'Reilly

Tel: +353 1 679 6363

 

Sodali & Co (Media enquiries)

Eavan Gannon

Tel: +353 87 236 5973

eavan.gannon@sodali.com (mailto:eavan.gannon@sodali.com)

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