Malin achieves small increase in fair value of investments
Dublin-listed biotech VC investor Malin (ISE:MLC) achieved a marginal increase in the fair value of its investment portfolio in the first half of 2018, with gains on its four largest investments set against write-downs on smaller ones. This fair value, which was struck in accordance with international private equity valuation (IPEV) guidelines, was €401m at 30 June, versus €398m, net of the €3m of realisations. The fair value of Malin’s four “core” assets (Poseida, Immunocore, Kymab and Viamet) increased by 20% (or €49m) to €290m in the six months to 30 June and now accounts for 72% of the total investment portfolio. Meanwhile, the aggregate fair value of the rest of the portfolio decreased by €48m as a result of write-downs.
The company, however, carries the investment portfolio at a value of €170m in its own accounts, since accounting values are typically more conservative. Moreover, this value fell by €29m in the first half from €199m at the end of December. Net cash at the period end was €48.7m, giving a total value of the portfolio plus cash of €218m, down from €248m at 31 December. Malin’s market capitalisation is €241m.
Malin’s own (corporate) cash, which excludes that held by affiliates, was €36m – boosted by an equity placing €28m in January.
Malin’s largest investment is in the private US-based CAR-T therapy company Poseida Therapeutics, in which it owns a 33% stake. Poseda today reported data from the first eleven relapsed/refractory multiple myeloma patients treated with its P-BCMA-101 stem cell memory CAR-T product. These show that all eleven patients remain on study with seven of ten evaluable patients per IMWG criteria, achieving at least a partial response.
P-BCMA-101 has also demonstrated very good safety for a CAR-T product, with only one instance of suspected cytokine release syndrome (9%) that was minimal and short-lived. No patients demonstrated neurotoxicity and no patients required admission to an intensive care unit or treatment with tociluzimab or steroids, interventions that are typically required during episodes of CRS elicited by other CAR-T therapies. Poseida’s P-BCMA-101 is a CAR-T immunotherapy designed to supercharge a patient’s own T cells to safely eliminate tumour cells via B cell maturation antigen (BCMA), which is expressed on essentially all multiple myeloma cells. P-BCMA-101 modifies a patient’s T cells using its proprietary non-viral gene delivery system, piggyBac, which provides several features to increase efficacy while minimising toxicity.
Its second largest holding is in the UK company Immunocore, whose lead programme – IMCgp100 – is in development for metastatic uveal melanoma (mUM). A second asset, IMCnyeso, has entered the clinic in non-small cell lung cancer, bladder cancer, melanoma and synovial sarcoma.
Two of Malin’s 12 main investments, Melinta and Novan. are publicly quoted and both have seen falls in this share price in the first half of this year. The IPEV fair values of the portfolio at 30 June are shown below:
|Net investment in H1 18 (€m)||Total cash invested (€m)||Fair value at 30/6 (€m)||% change in FV H1 18|