REG - Malin Corp PLC - Business Updates

MalinAnnouncement

07/12/2022 07:00

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RNS Number : 8297I  Malin Corporation PLC  07 December 2022

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014.

Malin Corporation plc

 

Business Updates

 

·    Malin has sold down its entire position in Immunocore generating
aggregate proceeds of approximately €145 million

·    Malin expects to complete a capital return to shareholders of
approximately €140 million via a tender offer to be launched by the end of
February 2023

·    Malin's estimate of its intrinsic equity value per share at 6
December 2022 is €9.27 per share

 

Dublin-Ireland, 7 December 2022: Malin Corporation plc. (Euronext Growth
Dublin:MLC) ("Malin", the "Company"), provides the following business updates.

 

Sale of Malin's 5% stake in Immunocore

 

Malin is pleased to announce that it has completed the divestment of its
entire stake in Immunocore in the market at an average price of approximately
$59 per share, generating total cash proceeds of approximately €145 million.
This includes the divestment of the 380k shares sold during August 2022 and
previously reported in Malin's interim financial results in September 2022.
Malin generated a 90% gain on its total capital invested in Immunocore of
approximately €77 million.

 

While Malin retains confidence in the potential of Immunocore's technology
platform, clinical pipeline and management team, Malin determined that the
realisation of value at recent market prices represented an optimal value
inflection point for Malin.

 

Current Cash Position

 

Malin's current cash balance is €174 million. The primary movements in the
Company's cash balance in the period since 5 September 2022 (Malin's 2022
Interim Report) are set out below:

 

                                                                   €'m
 Cash at 5 September 2022                                          40
 Proceeds from sale of Immunocore shares                           124
 Viamet milestone payment received                                 13
 Kymab escrow payment received                                     6
 Corporate OpEx, litigation costs & working capital movements      (2)
 Investment in CG Oncology                                         (7)
 Cash at 6 December 2022                                           174

 

Further details on the investee company-related cash movements are provided in
the Investee Company Updates section below.

Capital Return

 

As part of its stated capital allocation strategy, Malin remains committed to
returning excess capital of the business to our shareholders having taken
account of the expected capital deployment and corporate spending needs of the
business as well as the expected timing, quantum and probability of further
capital inflows from our assets. Following an assessment of its capital
requirements, Malin intends  to return approximately €140 million to
shareholders. The remaining cash balance will be used to fund the Company's
operations, including the possible investment of additional capital into
Malin's existing assets if attractive investment opportunities arise or if it
is determined the additional capital will help advance the investee company
towards a value inflection point or realisation opportunity.

 

Malin's board has concluded that a tender offer will be used as the mechanism
to return the capital to shareholders and intends to launch such on offer in
February 2023. The terms of the tender offer have not yet been determined. The
tender offer will be conditional on the approval of shareholders at a general
meeting. Details of the tender offer will be announced in conjunction with the
publication of a notice of an extraordinary general meeting which is expected
to be published in February 2023.

 

Updated Intrinsic Equity Value per share

 

Estimated intrinsic equity value is calculated using our estimate of the fair
value of our investee company holdings in accordance with International
Private Equity and Venture Capital Valuation ("IPEV") guidelines and adjusting
this value for Malin's cash balance, and has been presented below as at 6
December 2022. For further information on the basis of our IPEV fair value
estimates, please refer to our Interim Financial Statements at 30 June 2022.

 

                                             6 December                5 September 2022  30 June

                                             2022                                        2022
                                             Malin % holding

                                                              €'m      €'m               €'m
 Poseida                                     14%              54       41                24
 Immunocore                                  -                -        110               89
 Kymab                                       -                6        11                11
 Viamet                                      15%              51       80                80
 Xenex                                       11%              13       16                16
 CG Oncology                                 2%               7        -                 -
 Other                                       -                10       10                11
                                                              141      268               231
 Corporate Cash                                               174      40.4              28
 Estimated intrinsic equity value                             315      309               259
 Estimated intrinsic equity value per share                   €9.27    €9.08             €7.61

 

Investee Company Updates

 

Poseida

 

Poseida is advancing its fully allogeneic (or universal donor) CAR-T portfolio
and will present early but encouraging clinical data from both the BCMA and
MUC1-C programs at the European Society for Medical Oncology Immuno-Oncology
(ESMO I-O) 2022 Annual Congress taking place later this week. Poseida has
de-prioritised its only remaining autologous program, P-PSMA-101, and has
stopped enrollment in the Phase 1 trial.

 

Poseida is also progressing its gene therapy collaboration with Takeda and its
cell therapy collaboration with Roche and achieved the first clinical
milestone under the Roche collaboration of $35 million in September 2022.

 

Malin has estimated the fair value of its 14% stake in Poseida based on the
market price of Poseida's shares on 6 December 2022.

 

Kymab

 

Kymab was sold to Sanofi in April 2021 for an upfront payment of approximately
$1.1 billion and up to $350 million of contingent payments upon the
achievement of certain milestones. Malin received the final portion of its
escrow payment on the upfront consideration of approximately €6 million in
November 2022. Malin's remaining fair value estimate for its Kymab position of
€6 million at 6 December 2022 is based on a probability-adjusted discounted
cash flow model of Malin's portion of the contingent milestone payments.

 

Viamet

 

In April 2022, Mycovia, the successor company to Malin's investee company
Viamet, announced the approval from the United States Food and Drug
Administration (FDA) of VIVJOA (oteseconazole) for the treatment of RVVC in
females with a history of recurrent vulvovaginal candidiasis (RVVC) and who
are not of reproductive potential. In November 2022, Malin received a
milestone payment related to the approval of this drug of approximately €13
million.

 

Malin has engaged closely with Mycovia in recent months to understand and
quantify the commercial implications of the drug being contraindicated in
females of reproductive potential and in pregnant women, as well as the
possible future regulatory and commercial strategies that may be pursued by
Mycovia to extend the targeted patient population. Malin has re-estimated the
timing, quantum and probability of its expected inflows, resulting in a
decrease in the fair value estimate of approximately €16 million. Taken
together with the €13 million reduction in the Viamet fair value estimate
following the receipt of the milestone payment in November 2022, Malin's fair
value estimate for Viamet has decreased by approximately €29 million to
€51 million at 6 December 2022.

 

 

Xenex

 

Malin has re-estimated the fair value of its position in Xenex based on
current market conditions resulting in a €3 million reduction in the fair
value estimate.

 

CG Oncology

 

Malin completed a $7 million investment in CG Oncology ("CGO") in September
2022 as part of a $120 million Series E funding round. CGO is a Phase 3-stage
oncolytic immunotherapy company focused on developing bladder saving
therapeutics for patients with bladder cancer. With continued clinical
progress, Malin expects CGO to attract significant near-term strategic and
investor interest and determined that the risk, maturity timeline and value
profile of the investment was aligned with the existing assets of Malin.

 

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 please contact:

Malin

Fiona Dunlevy, Company Secretary

Tel: +353 (0)1 901 5700

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

 

Davy Corporate Finance (Euronext Growth Listing Sponsor & Joint Broker)

Brian Garrahy / Daragh O'Reilly

Tel: +353 1 679 6363

 

 

Liberum (Joint Broker)

Phil Walker / Ben Cryer

Tel: +44 (0) 20 3100 2000

 

Powerscourt (Media enquiries)

Eavan Gannon

Tel: +353 87 236 5973

malin@powerscourt-group.com (mailto:malin@powerscourt-group.com)

 

 

 

 

 

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