Malin Corporation PLC Interim Results 2023 (4794L)

TIDM0Y71

RNS Number : 4794L

Malin Corporation PLC

06 September 2023

Malin Corporation plc

Malin reports 2023 Interim Results

-- Intrinsic equity value estimate of EUR6.25 per share at 30 June 2023 and EUR6.49 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 EUR140 million to our shareholders via a tender offer; the Company may deploy up to EUR5 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 EUR140 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 EUR6.49 per share, a 36% decrease on our last publicly disclosed value of EUR10.07 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 EUR6.25, compared to the estimated intrinsic equity value per share as at 31 December 2022 of EUR9.34. 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 EUR6.49, 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.

   --    C orporate cash operating expenses for the first half of 2023 were EUR1.7 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(TM) (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 (EUR2.1 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(R) (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 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 EUR31.5 million. During August 2023, Malin invested an additional $2.3 million (approximately EUR2.1 million) in CG Oncology, as part of a $105 million crossover financing round. Malin had investment inflows of approximately EUR2.1 million during July and August 2023. As at 4 September 2023, Malin's corporate cash balance was EUR31.4 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 EUR5 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 , 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

For further information please contact:

Malin

Andrea Stafford, Head of Finance

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[e-mail]

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

Brian Garrahy / Daragh O'Reilly

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Liberum (Joint Broker)

Phil Walker / Ben Cryer

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Powerscourt (Media enquiries)

Eavan Gannon

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[e-mail]

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September 06, 2023 02:00 ET (06:00 GMT)