REG - Malin Corp PLC - Publication of Annual Report

MalinAnnouncement

15/03/2018 07:06

RNS Number : 7742H
Malin Corporation PLC
15 March 2018
Malin Corporation plc
("Malin" or "the Company")
Targeting 15% plus growth in total portfolio value in 2018
Dublin-Ireland, 15 March 2018: Malin Corporation plc. (ISE:MLC, "Malin"), an Irish-based global life sciences company, today announced the publication of its Annual Report for the period ended 31 December 2017 and the first of a regular, CEO Update to Shareholders.
 2017 asset highlights include: positive clinical data from Immunocore, Melinta and Viamet; first cash realisation (Viamet); first FDA drug approval (Melinta's Baxdela)
 2018 will see the release of key clinical data by Poseida (CAR-T), Immunocore and Kymab; Malin also targeting further cash realisations from specific investee companies
 Corporate structure refined to align with key assets; at least a 33% reduction in corporate operating expenses targeted for 2018; new independent non-executive directors expected to join the Board; considering dual listing
 Estimated total portfolio value at 31 December 2017 of 401 million; current cash position of 45 million
 Anticipated clinical and financial progress of investee companies underpins targeted 15% plus growth in Malin's total portfolio value in 2018
Update from Malin CEO, Adrian Howd
Dear Malin Shareholders,
Malin's purpose is to create shareholder value through the selective long-term application of capital and operational expertise to innovative private businesses in the life sciences industry. We work closely with our investee companies to enable them to reach the full potential of their value proposition. We are proud that since our IPO, over 1,000 people in clinical studies have received innovative, potential new medicines, developed by Malin's investee companies.
Our portfolio is maturing well. We have five assets with clinical proof-of-concept data and six that are revenue generating. We believe the maturation of our assets is set to accelerate in 2018 and 2019.
Asset Updates
Poseida became a clinical stage company in 2017 with its first CAR-T now in a US trial for the treatment of multiple myeloma. Poseida also received a $19.8m grant from the California Institute for Regenerative Medicine (CIRM) and released encouraging data in the prostate cancer setting. There is generally increasing strategic interest in the CAR-T space and we look forward to further clinical and scientific data from Poseida at key medical conferences during 2018.
In 2017, Immunocore began a pivotal study for its lead product, IMCgp100, treating metastatic uveal melanoma. We believe the data released to date is best-in-class, with a significant overall survival benefit. Recent biomarker and payor research give us increased confidence in the commercial potential of the product and a possible US launch in 2020. We expect additional data to be presented at major oncology conferences during 2018 and Immunocore is also aiming to file three new INDs over the next 18 months.
Last year was transformative for Kymab, with its first antibody therapeutic, KY1005, entering a clinical trial for the treatment of autoimmune diseases. Kymab also presented encouraging preclinical data on its lead anti-ICOS antibody KY1044, the lead candidate in its growing immuno-oncology pipeline. In 2018, Kymab plans to report data from the ongoing clinical trial with KY1005 and file an IND application for KY1044.
In 2017, Melinta received FDA approval for its novel broad-spectrum antibiotic Baxdela and this was launched commercially in January 2018. Baxdela is also being developed to treat Community-Acquired Bacterial Pneumonia (CABP) and Phase 3 results are expected in Q4 2018. In November 2017, Melinta completed a reverse merger with Cempra, Inc. and gained a NASDAQ listing (NASDAQ:MLNT). In January 2018, Melinta acquired The Medicines Company's (NASDAQ:MDCO) infectious disease business which provided three market-leading products and a highly experienced sales force. Malin believe that Melinta now has an industry-leading portfolio and pipeline of first in class antibiotics and a field force of 135 sales representatives with significant commercial experience.
In late 2017, Viamet sold its lead anti-fungal drug VT-1161 to NovaQuest Capital Management in a structured transaction that provided Malin with our first cash realisation. The terms of the transaction give Malin the potential of further significant cash inflows, subject to the achievement of regulatory and commercial milestones, plus a share of future sales royalties.
There were some investee company disappointments in 2017. In January 2017, Novan announced the results of both of its Phase 3 trials for SB204 in the treatment of acne. One of the trials achieved all three required endpoints, while only one of three endpoints was achieved in the other trial. Since then we believe good progress has been made in focusing and advancing Novan's pipeline across anti-fungal, anti-inflammatory and anti-viral indications. Late in October 2017, Novan stated that it is in the advanced stages of discussions with a third party on an alternative approach to the financing of the next Phase 3 study for SB204 in acne and successfully completed a $38 million equity financing in January 2018.
In December 2017, the Board of NeuVT, our neurovascular device company, began a review to determine how best to position and progress its business. NeuVT does not currently have the capital required to advance its pipeline of products in development and the business review may result in the separation, sale or spin-off of certain assets from the NeuVT business. We expect this review to be completed by the end of the first half of 2018 and we will assess the investment opportunity at that point.
Corporate Update
At the corporate level, we have formed Nidus, a wholly owned business unit of Malin focused solely on our early-stage/pre-clinical assets, including Cambridge University and Yale University spinouts, Wren Therapeutics and Artizan Biosciences. The needs of early-stage assets differ from mature businesses from a risk/return and timing perspective and the Nidus structure better allows us to accelerate their transition from scientific data into businesses.
During Q4 2017, we took steps to refine our corporate structure to better align with our focus on unlocking the full value potential of key assets. These changes have resulted in a targeted reduction in our 2018 corporate operating expenses of at least 33% versus 2017. Our balance sheet was strengthened by the 28 million equity raise in January 2018 and with cash realisations from assets. We currently have cash of approximately 45 million on our balance sheet. We intend to augment our Board by the addition of at least two new Independent Non-Executive Directors. Our Nominations Committee is working to identify candidates with the necessary skills and experience in advance of our 2018 AGM. We are also considering the possibility of a dual market listing for Malin, potentially in the UK, to increase exposure of our assets to global investors and to improve liquidity.
As detailed in our 2017 Annual Report, we have adopted the International Private Equity and Venture Capital Valuation (IPEV) Guidelines to describe the total value of our assets. This approach provides a more suitable and robust framework to appraise the value of our investee companies. Using this approach, the estimated total portfolio value at 31 December 2017 was 401 million.
Outlook
We look forward to 2018 with increased confidence in our business structure and in our investee companies. Based on our assessment of the current status of our assets and their outlook, we are targeting a 15% plus growth in the total value of our investee company portfolio during 2018. Thank you for your continued support.
Yours sincerely,
Adrian Howd PhD
CEO
Malin Corporation plc
A copy of the 2017 Annual Report is available here
http://www.rns-pdf.londonstockexchange.com/rns/7742H_-2018-3-14.pdf
and a copy is now available to the public at www.malinplc.com 
ENDS
About Malin Corporation plc
Malin (ISE:MLC) is an Irish incorporated public limited company. Its purpose is to create shareholder value through selective long-term application of capital and operational expertise to innovative private businesses in the life sciences industry. Through its operational involvement, Malin works with its investee companies to enable them to reach the full potential of their value proposition. For more information visit www.malinplc.com
Forward-looking statements
Any forward-looking statements made in this press release have been made in good faith based on the information available as of the date of this press release and are not guarantees of future performance. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future and reflect the Company's current expectations and assumptions as to such future events and circumstances that may not prove accurate. Actual results or developments may differ materially from the expectations expressed or implied in these statements, and the Company expressly disclaims any obligation to update any such statements whether as a result of new information, future events, or otherwise. The Company's Annual Report contains and identifies important factors that could cause these developments or the Company's actual results to differ materially from those expressed or implied in these forward-looking statements, certain of which are beyond our control. You should not place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document.
For further information, please contact:
Malin Media Relations/IR
Tel: +353 1 901 5717
Email: mediarelations@malinplc.com
Davy Corporate Finance (ESM Adviser)
Brian Garrahy / Daragh O'Reilly
Tel: +353 1 679 6363

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