REG - Malin Corp PLC - Kymab to be acquired by Sanofi

MalinAnnouncement

11/01/2021 08:45

RNS Number : 2134L
  
Malin Corporation PLC
  
11 January 2021
  
 

Malin Corporation plc
 
Kymab to be acquired by Sanofi 
 
·    Consideration includes an upfront payment of approximately $1.1 billion and up to $350 million upon achievement of certain milestones
·    Malin expects to receive approximately $112 million from the upfront payment, which will be used to repay outstanding debt and initiate capital returns to shareholders 
 
Dublin-Ireland, 11 January 2021: Malin Corporation plc. (Euronext Growth Dublin:MLC) (Malin),  a company investing in highly innovative life sciences companies, today announces that its investee company, Kymab, has entered into a definitive agreement with Sanofi (Euronext: SAN) (NASDAQ: SNY), pursuant to which Sanofi will acquire all outstanding shares of Kymab for an upfront payment of approximately $1.1 billion and up to $350 million upon achievement of certain milestones. 
 
Malin owns approximately 10% of the issued share capital of Kymab and the sale of Kymab is expected to deliver initial net proceeds to Malin of approximately $112 million, with the potential to receive up to a further $33 million on the achievement of certain milestones. 
 
Following this announcement, Malin's estimated fair value of its investment in Kymab has increased to approximately €95 million (equates to approximately €2.06 per Malin share). This represents a 174% premium, or an increase of €60 million (€1.31 per Malin share), to the last disclosed estimate of the fair value of Malin's investment in Kymab of €34.5 million at 31 August 2020. 
 
The closing of the transaction, which is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions, is expected in the first half of 2021.
 
Commenting on the transaction, Dr Jean-Michel Cosséry, Non-Executive Director of Malin and Kymab board director, said: "Sanofi's acquisition of Kymab is a testament to the outstanding work of the Kymab team over many years, from first developing its unique antibody discovery platform right through to generating excellent clinical data. Sanofi, with its global resources and leading presence in immunology, is the ideal partner to advance Kymab's exciting clinical and early-stage programmes to hopefully deliver differentiated and life-saving therapies to patients around the world." 
 
"The sale of Kymab is a very significant milestone for Malin in our continuing strategy to deliver maximal value to shareholders," said Darragh Lyons, Malin Chief Executive Officer. "We remain focused on working with our investee companies to achieve clinical and operational milestones and to realise our investments at optimal value inflection points. €45 million of the upfront cash proceeds from the sale of Kymab will be used to repay our outstanding EIB debt in full, with the balance to be used to initiate capital returns to shareholders which we expect to occur during the second half of 2021."
 
This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) No 596/2014 (MAR).
 
 
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  
 
About Kymab
Kymab is a clinical-stage biopharmaceutical company developing fully human monoclonal antibody therapeutics with a focus on immune mediated diseases and immuno-oncology using its proprietary, integrated platforms collectively called IntelliSelect®. Kymab's IntelliSelect Transgenic platforms contain a full diversity of human antibodies, making them the most comprehensive antibody platforms available. Selecting from a broad diversity of fully human antibodies assures the highest probability of finding drug candidates with best-in-class characteristics quickly and efficiently. For the financial year ended 30 September 2020, Kymab incurred a loss before taxation of £40.4 million. 
 

For further information please contact:
 
Malin 
Jessica Bergin, Investor Relations & External Reporting
Tel: +353 (0)1 901 5700
investorrelations@malinplc.com
 
Davy Corporate Finance (Euronext Growth Adviser & Joint Broker)
Brian Garrahy / Daragh O'Reilly
Tel: +353 1 679 6363
 
Liberum (Joint Broker)
Bidhi Bhoma / Euan Brown
Tel: +44 (0) 20 3100 2000
 
Powerscourt (Irish Media enquiries)          
Eavan Gannon
Tel: +353 87 236 5973                            
malin@powerscourt-group.com  

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