REG - Malin Corp PLC - Business Updates

MalinAnnouncement

23/07/2024 16:30

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RNS Number : 5249X  Malin Corporation PLC  23 July 2024

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 CG Oncology generating
aggregate proceeds of approximately €28.5 million

·    Malin expects to complete a capital return to shareholders via a
tender offer in Q4 2024

·    Malin's estimate of its intrinsic equity value per share at 23 July
2024 is €6.60 per share

 

Dublin-Ireland, 23 July 2024: Malin Corporation plc. (Euronext Growth
Dublin:MLC) ("Malin", the "Company"), provides the following business updates.

 

Sale of Malin's interest in CG Oncology

 

Malin is pleased to announce that it has completed the divestment of its
entire stake in CG Oncology in the market at an average price of approximately
$33.44 per share, generating total cash proceeds of approximately €28.5
million. Having made its initial investment in CG Oncology in September 2022,
Malin generated a 175% gain on its total capital invested of approximately
€10.3 million.

 

While Malin retains confidence in the potential of CG Oncology's therapeutic
product, clinical pipeline and management team, Malin determined that the
realisation of value at recent market prices represented an optimal value
inflection point for Malin. As previously stated, Malin's shares in CG
Oncology which had been acquired prior to the Initial Public Offering ('IPO')
of the company in January 2024 were subject to a 180-day lockup post-IPO.

 

Following the divestment of its interest in CG Oncology, Malin's current cash
balance is approximately €62.4 million.

 

Capital Return

 

As part of its stated strategy, Malin remains committed to returning excess
capital of the business to our shareholders having taken account of the
corporate spending needs of the business and the possible investment of
additional capital into Malin's remaining investee companies 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. The terms of the tender offer have not
yet been determined and 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 and is in anticipated that the tender offer will take place in
Q4 2024.

 

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 23
July 2024. For further information on the basis of our IPEV fair value
estimates, please refer to the Company's 2023 Annual Report.

 

                                             23 July 2024              30 June 2024  31 December 2023
                                             Malin % holding

                                                              €'m      €'m           €'m
 Poseida                                     12%              35.1     32.3          36.0
 Kymab                                       -                2.0      2.0           7.9
 Viamet                                      15%              19.1     19.5          29.4
 Xenex                                       10%              6.1      6.2           6.1
 CG Oncology                                 -                -        25.8          15.0
                                                              62.3     85.8          94.4
 Corporate Cash                                               62.4     35.7          29.3
 Estimated intrinsic equity value                             124.7    121.5         123.7
 Estimated intrinsic equity value per share                   €6.60    €6.44         €6.56

 

As at 23 July 2024, the Company has 18,889,274 Ordinary Shares of €0.01
nominal value in issue.

 

Investee Company Updates

 

Poseida

 

Poseida has made important progress across its three clinical-stage allogeneic
CAR-T programs in 2024 to date, and has indicated that it expects to provide
clinical updates on each of these programs in the second half of this year,
subject to coordination with Roche in respect of their partnered programs.

 

In May 2024, Poseida announced a research collaboration and license agreement
with Astellas to develop novel convertibleCAR® programs by combining the
innovative cell therapy platforms from each of the companies. Under the
agreement, Poseida received $50 million upfront and may receive potential
development and sales milestones payments and royalties, in addition to
reimbursement for costs incurred as part of the research agreement.

 

Poseida is also progressing its gene therapy pipeline having presented
promising preclinical data earlier this year from its two fully non-viral lead
programs for the treatment of Hereditary Angioedema and Haemophilia A and
showcasing the potential of Poseida's unique and proprietary gene-editing and
gene-insertion toolkit.

 

Malin has estimated the fair value of its 12% interest in Poseida based on the
closing market price of Poseida's shares on 22 July 2024.

 

Kymab

 

Malin previously announced that in connection with the sale of Kymab to Sanofi
in 2021, Malin could over time receive further payments in connection with its
share of milestone-related contingency payments.

 

In February 2024, Malin received a payment of €6.5 million relating to the
first of these potential milestone-related contingency payments and the
Company's intrinsic value estimate at 23 July 2024 includes a fair value
estimate of €2.0 million related to the balance of the potential contingent
payments.

 

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.

 

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, and
consequently to Malin, in the near term and we have revised our estimate of
the IPEV valuation of Malin's interest in Viamet on that basis. We expect
further clarity on the future regulatory, commercial and strategic pathway in
the months ahead.

 

Xenex

 

The challenging macroeconomic situation facing hospitals in the US continues
to be a major headwind for Xenex. On the back of the FDA DeNovo authorisation
for its LightStrike™ device, granted in 2023, Xenex is exploring initiatives
for driving future sales growth and we look forward to seeing the results of
these initiatives in the company's 2024 sales results.

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, Executive Director/Company Secretary

Tel: +353 (0)1 901 5700

cosec@malinplc.com (mailto:cosec@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

 

Sodali & Co (Media enquiries)

Eavan Gannon

Tel: +353 87 236 5973

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

 

 

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