Government-supported biotech firm Malin Corporation reported a consistent downturn in its projected intrinsic per-share value during the initial half of the year, due to a slump in the value of significant assets.
In the biannual results for the half-year ending on 30th June 2024, Malin, the company in which the Government maintains an 11.3% shares through the Ireland Strategic Investment Fund (Isif), reported a drop in its intrinsic value per share to €6.44 at the close of June, a decrease from €6.56 at the termination of December 2023. There was an additional 2% drop to €6.33 between the close of June and 22nd August, as declared by Malin.
This depreciation in value is due to the devaluing of Poseida shares, a clinical phase biopharmaceutical company listed on Nasdaq and in which Malin has a 12% stake; a downward adjustment in the value of its 15% Viamet interest, in combination with foreign exchange transitions.
Operating corporate financial expenditures for the first half of 2024 tallied €1.3 million.
Currently, Malin boasts a cash balance of approximately €63 million, boosted by the recent conclusion of its CG Oncology interest’s sale, resulting in a €28.5 million windfall for the firm, thereby representing a gain of 175%.
The company is planning to distribute about €45 million back to its investors via a tender offer in the last quarter of the year.
Nevertheless, the cutback in share capital required to fulfil this buyback mandate needs shareholder endorsement and High Court validation. To address this concern, Malin is convening an extraordinary meeting in September.
As stated by executive director Fiona Dunlevy, “During the first half of 2024, we effectively put our business strategy into practice, with our investee firms persistently accomplishing or making progress towards more critical operational, clinical, and transactional milestones.”
“Presently, with approximately €62.9 million in cash, Malin is procuring the necessary advance measures, ahead of a probable tender offer later this year to circulate approximately €45 million back to its shareholders,” she added.