REG - Malin Corp PLC - Interim Results 2023

MalinAnnouncement

06/09/2023 07:00

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RNS Number : 4794L  Malin Corporation PLC  06 September 2023

Malin Corporation plc

 

Malin reports 2023 Interim Results

 

·    Intrinsic equity value estimate of €6.25 per share at 30 June 2023
and €6.49 per share at 4 September 2023.

·    Encouraging clinical and transactional progress achieved by Malin's
investee companies during the period.

·    Continued execution of the business strategy during the first half of
2023, including the return of €140 million to our shareholders via a tender
offer; the Company may deploy up to €5 million to buy back shares in the
market over the coming months within the existing authority granted by
shareholders.

 

Dublin-Ireland, 6 September 2023: Malin Corporation plc (Euronext Growth
Dublin:MLC) ("Malin", the "Company"), a company investing in highly innovative
life sciences companies, today publishes its interim results for the six month
period to 30 June 2023.

 

"We continued to execute our business strategy during the first half of 2023,
including the return of €140 million to our shareholders via a tender offer,
said Darragh Lyons, Chief Executive Officer, commenting on the results.  "Our
investee companies achieved some important clinical, operational and
transactional milestones which we believe will help to advance them towards
value inflection points in the months ahead. Biotech capital markets continue
to be extremely challenging and Poseida's share price has been under
significant pressure, despite some notable transactional and operational
progress. Our current intrinsic equity value per share is approximately
€6.49 per share, a 36% decrease on our last publicly disclosed value of
€10.07 at 14 February 2023, which is largely attributable to the sharp
decline in the share price of Poseida during this period."

 

Financial Highlights

 

·    Estimated intrinsic equity value is calculated using our estimate of
the fair value of our investee company holdings in accordance with the
International Private Equity and Venture Capital Valuation ("IPEV")
guidelines, adjusted for cash.

 

·    Malin's estimated intrinsic equity value per share at 30 June 2023
was €6.25, compared to the estimated intrinsic equity value per share as at
31 December 2022 of €9.34. This decrease was primarily attributable to the
decline in the public market share price of Poseida in that period.

 

·    Malin's estimated intrinsic equity value per share at 4 September
2023 was €6.49, a 4% increase compared to 30 June 2023. This increase was
attributable to a modest increase in the public market share price of Poseida
following the announcement of a $50 million strategic investment by Astellas
in Poseida in August 2023.

 

·    Corporate cash operating expenses for the first half of 2023 were
€1.7 million.

 

 

Investee Company Highlights

 

Poseida

 

·    Astellas made a $50 million strategic investment in Poseida in August
2023 which is comprised of the purchase of 8.3 million common shares of
Poseida, approximately 8.8% of Poseida, and a right of exclusive negotiation
and first refusal for any potential partnering of P-MUC1C-ALLO1, Poseida's
allogeneic CAR-T cell therapy product candidate for solid tumours.

·    Poseida's Phase 1 trials for both P-BCMA-ALLO1 and P-MUC1C-ALLO1 are
progressing, having identified improvements that Poseida believes have the
potential to greatly benefit the allogeneic portfolio.

·    Poseida's gene therapy collaboration with Takeda was terminated in
July 2023 following Takeda's decision to pivot its research priorities.
Poseida may seek new strategic collaborations in gene therapy that could
include some or all of the programs previously included in the Takeda
Collaboration Agreement and potentially additional internal programs.

 

Viamet

 

·    VIVJOA™ (oteseconazole) was approved in the U.S. in April 2022 for
the treatment of Recurrent Vulvovaginal Candidiasis (RVVC) but with a
contraindication for females who are pregnant or of reproductive potential.
The contraindication was prompted by ocular abnormalities observed in pre and
postnatal rat studies. Mycovia is working to better understand the cause of
the rats' ocular abnormalities in these studies and to assess their relevance,
if any, to humans, with the aim of gaining regulatory approval to extend the
targeted patient population.

·    Development progress continues outside of the U.S. Oteseconazole was
recently approved for the treatment of severe vulvovaginal candidiasis in
China.

 

CG Oncology

 

·    CG Oncology executed an oversubscribed $105 million crossover
financing round in August 2023, in which Malin invested $2.3 million (€2.1
million) to maintain its c.2% interest.

·    CG Oncology  presented very encouraging preliminary data in May 2023
from its ongoing global Phase 2 study of CG0070 in combination with Merck's
anti-PD-1 therapy KEYTRUDA® (pembrolizumab), for the treatment of patients
with non-muscle invasive bladder cancer (NMIBC)

·    CG Oncology completed enrolment in a Phase 3 monotherapy trial of
CG0070 for the treatment of BCG-unresponsive NMIBC with topline data expected
before the end of 2023, which will hopefully support a Biologics Licensing
Application (BLA) regulatory approval filing in late-2024.

 

 

 

Xenex

 

·    On 1 September 2023, the FDA granted De Novo authorisation for
Xenex's LightStrike(TM)+ device, a high-intensity, broad-spectrum
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fxenex.com%2Four-uv-advantage%2F&esheet=53548912&newsitemid=20230905128680&lan=en-US&anchor=high-intensity%2C+broad-spectrum&index=2&md5=787d68e5f060ae84e728c925b20059e1)
 ultraviolet (UV) light robot. The authorisation creates a new medical device
product classification under which the LightStrike+ robot is the first and
only product of its type, setting the precedent for FDA regulation of UV
robots intended for use in reducing pathogens on non-porous, high-touch
surfaces in the healthcare environment.

 

Balance Sheet

 

·    Malin's corporate cash balance at 30 June 2023 was €31.5 million.
During August 2023, Malin invested an additional $2.3 million (approximately
€2.1 million) in CG Oncology, as part of a $105 million crossover financing
round. Malin had investment inflows of approximately €2.1 million during
July and August 2023. As at 4 September 2023, Malin's corporate cash balance
was €31.4 million.

 

·    The corporate cash balance will be used to fund the Company's
operations, including the possible investment of additional capital into
Malin's remaining assets if attractive investment opportunities arise or if it
is determined that additional capital will help advance the investee company
towards a value inflection point or realisation opportunity. The Company
remains committed to returning the excess capital of the business to
shareholders.

 

·    The Company may deploy up to €5 million of capital to buy back
shares in the market over the coming months within the existing authority
granted by shareholders. Any decision to repurchase shares will be within the
existing authority granted by shareholders.

 

Leadership Updates

 

·    As previously announced, following Malin's significant capital
realisations and shareholder returns over the past four years, its Chief
Executive Officer, Darragh Lyons, will leave the Company before the end of
2023. Mr Lyons will step down as member of the board on his departure as
CEO.

 

·    Fiona Dunlevy will assume the role of Executive Director from 2
October 2023 and join Malin's board of directors.

 

·    Malin's Chairman, Liam Daniel, will also undertake additional
responsibilities as an Executive Chairman from 2 October 2023.

 

Interim Report

 

Malin's interim 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.

 

 

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

Andrea Stafford, Head of Finance

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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