Malin Corporation PLC 2023 Full Year Results and Notice of 2024 AGM

RNS Number : 6920E

Malin Corporation PLC

28 February 2024

 

 

 

Malin Corporation plc

 

2023 Full Year Results and Notice of 2024 AGM

 

·    Estimated intrinsic equity value per share is €6.56 at 31 December 2023 and €7.91 at 26 February 2024

·    Malin returned €140.7 million of capital to shareholders through a tender offer and on-market buybacks in 2023

·    Important clinical and regulatory milestones achieved by Malin's investee companies during 2023

·    Mr Liam Daniel's role to revert to Non-Executive Chair following the 2023 leadership transition

·    Malin's AGM will be held on 28 March 2024

 

Dublin-Ireland, 28 February 2024: Malin Corporation plc (Euronext Growth Dublin:MLC) ("Malin", the "Company"), a company investing in highly innovative life sciences companies, today publishes its full year results and annual report for the year ended 31 December 2023. Malin today also announces that the Letter from the Chair, Notice of Annual General Meeting ("AGM") and Form of Proxy have been issued to shareholders. 

 

Malin has previously communicated that its strategy going forward will focus on maximising shareholder returns by protecting and enhancing the value of Malin's remaining positions in its investee companies. With this refined strategy in mind, in 2023 the leadership of the Company transitioned from Darragh Lyons to Fiona Dunlevy, who has held several senior positions in the Company since 2015. Mr Liam Daniel undertook additional duties as Executive Chair during this period. Following a successful transition, the Board now considers it appropriate for Mr Daniel's role to revert to Non-Executive Chair with effect from 29 February 2024. 

 

Fiona Dunlevy, Executive Director, said:

 

"We are pleased with the progress made by the business during 2023. The focus of our business strategy over the past few years has been to protect and enhance the value of our positions in our investee companies, insofar as possible, while these businesses worked towards reaching important business milestones. During 2023, we continued our execution of this strategy, starting the year with the return of €140 million of capital to shareholders via a tender offer which had been brought about by capital generated from the successful divestment of a number of investee companies."

 

Estimated intrinsic equity value

 

·    Malin's intrinsic equity value at 31 December 2023 was estimated to be €6.56 per share, or €123.7 million and is arrived at by taking the aggregate fair value of our investee company holdings in accordance with the International Private Equity and Venture Capital Valuation ("IPEV") Guidelines and adjusting this value for Malin's corporate cash balance.

 

·    Malin's estimated intrinsic equity value at 26 February 2024 has increased to €7.91 per share, or €149.1 million primarily due to an increase in the share price of Malin's NASDAQ-listed biotech holding, CG Oncology Inc. ("CGO").

 

Fair value of investee companies

 

·    The aggregate fair value of Malin's interests in its investee companies was €94.4 million at 31 December 2023 compared to €143.4 million at 31 December 2022. The decrease in the aggregate fair value during 2023 is largely due to the reduction in the Poseida share price during the year along with distributions received from Viamet. The aggregate fair value was also reduced as a result of updated fair value estimates for Malin's stakes in Viamet and Xenex. The reduction in the aggregate fair value is partially offset by an increase in the fair value of Malin's interest in CGO, resulting from an additional investment by Malin in July 2023 of €2.1 million and an increase in the fair value of Malin's interest in CGO based on the company's initial public offering ("IPO") price.

 

·    The aggregate fair value of Malin's interests in its investee companies increased to €114.6 million as at 26 February 2024 as a result of the increase in the market share price of CGO since its IPO on 25 January 2024.

 

Cash Position

 

·    Malin's corporate cash balance at 31 December 2023 was €29.3 million compared to €173.9 million at 31 December 2022.

 

·    The reduction in Malin's cash balance over this period is primarily as a result of the €140 million tender offer in March 2023 and a €2.1 million follow-on investment in CGO in July 2023.

 

·    Malin's cash balance at 26 February 2024 was €34.5 million, having increased since 31 December 2023 as a result of the receipt of a contingent milestone payment related to the 2021 sale of Kymab to Sanofi.

 

·    Malin remains committed to returning excess capital to its shareholders, having taken into account potential investments into its existing investee companies if strategically or financially attractive investment opportunities arise and the operational needs of the business.

Investee Company Highlights

 

Poseida

·    Poseida made important progress with its clinical and pre-clinical cell therapy pipeline during 2023. The company presented positive early safety and preliminary efficacy data from its P-BCMA-ALLO1 Phase 1 trial at the 65th American Society of Hematology ("ASH") Annual Meeting in December 2023.

 

·    In July 2023, Poseida received IND clearance from the FDA for P-CD19CD20-ALLO1, an allogeneic CAR-T product being developed to target B-cell malignancies in partnership with Roche, to allow patient dosing to commence in early 2024. P-CD19CD20-ALLO1 is Poseida's first dual CAR-T program, containing two fully functional CAR molecules to target cells that express either CD19 or CD20.

 

·    In August 2023, Poseida announced a $50 million strategic investment by Astellas, which comprised of the purchase of 8.3 million common shares of Poseida, representing 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 announced in November 2023 that, based upon substantial progress in its P-BCMA-ALLO1 and P-CD19CD20-ALLO1 programs, certain payments as well as the expected timing of achievement of upcoming milestones in programs under its collaboration with Roche have been accelerated, resulting in expected cash runway into the second half of 2025.

CG Oncology

·    CGO closed a $105 million Series F crossover financing in July 2023, in which Malin made a follow-on investment of €2.1 million ($2.3 million) in the company.

 

·    CGO completed the first biotech IPO of 2024 in January, raising $437 million at an IPO price per share of $19 and listing on the Nasdaq Global Select Market under the ticker symbol "CGON". Malin made a further investment of approximately $1 million in the IPO. All shares acquired by Malin in CGO pre-IPO are restricted from resale for a period of 180 days under market standoff and lock‑up agreements.

 

·    In November 2023 CGO announced positive interim data from its BOND-003 Phase 3 monotherapy clinical trial of cretostimogene grenadenorepvec for the treatment of Non-Muscle Invasive Bladder Cancer ("NMIBC") in patients who are unresponsive to BCG. The company expects to report topline data from this study by the end of 2024, which if successful, could serve as the basis for a BLA submission to the FDA. 

 

·    In December 2023, CGO announced that the FDA had granted fast track and breakthrough therapy designations to cretostimogene grenadenorepvec for use as a potential therapeutic option in patients with high-risk BCG-unresponsive NMIBC.

Xenex

·    In September 2023, Xenex announced that the U.S. Food and Drug Administration ("FDA") had granted the company De Novo authorisation for its LightStrike™+ device, a high-intensity, broad-spectrum ultraviolet (UV) light robot.

 

Kymab

·    Malin previously announced that, in connection with the Kymab sale to Sanofi in 2021, it could receive up to a further $33 million from Malin's share of milestone-related contingent payments. In February 2024, Malin received €6.5 million by way of the first of these potential milestone-related contingent payments.

 

Viamet

·    During the second half of 2023, Malin received distributions from Viamet of approximately €1.3 million relating to milestone payments triggered by ex-US development progress.

Annual Report

 

Malin's 2023 Annual Report and further information on Malin is available to view on Malin's website at www.malinplc.com, under the Investors' section.

 

2024 AGM

 

The Letter from the Chair, Notice of Annual General Meeting and Form of Proxy have been issued to shareholders.  An electronic copy of all documents is also available on the Company's website at www.malinplc.com.

Malin's 2024 AGM will be held in the Conrad Dublin Hotel, Earlsfort Terrace, Dublin 2, D02 V562, Ireland at 1:00p.m. GMT on Thursday, 28 March 2024.

The Notice of AGM sets out the resolutions to be proposed at the AGM and the processes by which shareholders may vote in connection with the AGM.

In addition, a teleconference facility will be available to any shareholders not in physical attendance at the AGM to listen remotely to the proceedings of the meeting, using the following details:

From Ireland dial:                         01 691 7842

From the UK dial:                          020 3936 2999

From the USA dial:                        1 646 787 9445

From other locations dial:          [phone]

Listen-Only Access Code:            084241

 

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.

For further information contact:

 

Malin

Fiona Dunlevy, Executive Director / Company Secretary

Tel: [phone]

[e-mail]

 

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

Brian Garrahy / Daragh O'Reilly

Tel: [phone]

 

Liberum (Joint Broker)

Phil Walker / Ben Cryer

Tel: [phone]

 

Powerscourt (Irish Media enquiries)         

Eavan Gannon

Tel: [phone]                            

[e-mail]  

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END

 

 

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