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Malin Corporation plc

Business Updates

·    Malin has sold down its entire position in CG Oncology generating aggregate proceeds of approximately €28.5 million

·    Malin expects to complete a capital return to shareholders via a tender offer in Q4 2024

·    Malin's estimate of its intrinsic equity value per share at 23 July 2024 is €6.60 per share

Dublin-Ireland, 23 July 2024: Malin Corporation plc. (Euronext Growth Dublin:MLC) ("Malin", the "Company"), provides the following business updates.

Sale of Malin's interest in CG Oncology

Malin is pleased to announce that it has completed the divestment of its entire stake in CG Oncology in the market at an average price of approximately $33.44 per share, generating total cash proceeds of approximately €28.5 million. Having made its initial investment in CG Oncology in September 2022, Malin generated a 175% gain on its total capital invested of approximately €10.3 million.

While Malin retains confidence in the potential of CG Oncology's therapeutic product, clinical pipeline and management team, Malin determined that the realisation of value at recent market prices represented an optimal value inflection point for Malin. As previously stated, Malin's shares in CG Oncology which had been acquired prior to the Initial Public Offering ('IPO') of the company in January 2024 were subject to a 180-day lockup post-IPO.

Following the divestment of its interest in CG Oncology, Malin's current cash balance is approximately €62.4 million.

Capital Return

As part of its stated strategy, Malin remains committed to returning excess capital of the business to our shareholders having taken account of the corporate spending needs of the business and the possible investment of additional capital into Malin's remaining investee companies if attractive investment opportunities arise or if it is determined the additional capital will help advance the investee company towards a value inflection point or realisation opportunity.

Malin's board has concluded that a tender offer will be used as the mechanism to return the capital to shareholders. The terms of the tender offer have not yet been determined and the tender offer will be conditional on the approval of shareholders at a general meeting. Details of the tender offer will be announced in conjunction with the publication of a notice of an extraordinary general meeting and is in anticipated that the tender offer will take place in Q4 2024.

Updated Intrinsic Equity Value per share

Estimated intrinsic equity value is calculated using our estimate of the fair value of our investee company holdings in accordance with International Private Equity and Venture Capital Valuation ("IPEV") guidelines and adjusting this value for Malin's cash balance, and has been presented below as at 23 July 2024. For further information on the basis of our IPEV fair value estimates, please refer to the Company's 2023 Annual Report.

As at 23 July 2024, the Company has 18,889,274 Ordinary Shares of €0.01 nominal value in issue.

Investee Company Updates

Poseida

Poseida has made important progress across its three clinical-stage allogeneic CAR-T programs in 2024 to date, and has indicated that it expects to provide clinical updates on each of these programs in the second half of this year, subject to coordination with Roche in respect of their partnered programs.

In May 2024, Poseida announced a research collaboration and license agreement with Astellas to develop novel convertibleCAR® programs by combining the innovative cell therapy platforms from each of the companies. Under the agreement, Poseida received $50 million upfront and may receive potential development and sales milestones payments and royalties, in addition to reimbursement for costs incurred as part of the research agreement.

Poseida is also progressing its gene therapy pipeline having presented promising preclinical data earlier this year from its two fully non-viral lead programs for the treatment of Hereditary Angioedema and Haemophilia A and showcasing the potential of Poseida's unique and proprietary gene-editing and gene-insertion toolkit.

Malin has estimated the fair value of its 12% interest in Poseida based on the closing market price of Poseida's shares on 22 July 2024.

Kymab

Malin previously announced that in connection with the sale of Kymab to Sanofi in 2021, Malin could over time receive further payments in connection with its share of milestone-related contingency payments.

In February 2024, Malin received a payment of €6.5 million relating to the first of these potential milestone-related contingency payments and the Company's intrinsic value estimate at 23 July 2024 includes a fair value estimate of €2.0 million related to the balance of the potential contingent payments.

Viamet

In April 2022, Mycovia, the successor company to Malin's investee company Viamet, announced the approval from the FDA of VIVJOA™ (otesecanazole) for the treatment of Recurrent Vulvovaginal Candidiasis ("RVVC") in females with a history of RVVC and who are not of reproductive potential. Additional studies are being performed for submission to the FDA, with the aim of gaining regulatory approval to extend the targeted patient population.

The need to complete this additional development work has curtailed or delayed commercial launches of the drug in the US and other markets thereby impacting the milestones and royalties that may have become payable to Viamet, and consequently to Malin, in the near term and we have revised our estimate of the IPEV valuation of Malin's interest in Viamet on that basis. We expect further clarity on the future regulatory, commercial and strategic pathway in the months ahead.

Xenex

The challenging macroeconomic situation facing hospitals in the US continues to be a major headwind for Xenex. On the back of the FDA DeNovo authorisation for its LightStrike™ device, granted in 2023, Xenex is exploring initiatives for driving future sales growth and we look forward to seeing the results of these initiatives in the company's 2024 sales results.

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

Fiona Dunlevy, Executive Director/Company Secretary

Tel: +353 (0)1 901 5700

[email protected]

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

Sodali & Co (Media enquiries)         

Eavan Gannon

Tel: +353 87 236 5973                            

[email protected]