Business Irish

Saturday 15 June 2019

Malin tipped for windfall as Poseida bids for IPO

Traders look at price monitors as they work on the floor at the New York Stock Exchange (NYSE). Photo: Reuters
Traders look at price monitors as they work on the floor at the New York Stock Exchange (NYSE). Photo: Reuters
Ellie Donnelly

Ellie Donnelly

Poseida Therapeutics, an investee company of Malin, has filed for a potential initial public offering (IPO) on the Nasdaq.

State-backed life sciences investor Malin owns 33pc of Poseida.

The number of shares to be offered to investors, and the price range for the offering in the US-based clinical-stage biotechnology company, have not yet been determined.

In separate news, Malin said that Immunocore has appointed Bahija Jallal as CEO and director of the company's board.

Malin owns approximately 10pc of Immunocore, a UK-based T-cell receptor (TCR) biotechnology company focused on delivering biological therapies.

Ms Jallal joined from AstraZeneca where she was president and head of its global biologics research and development unit, MedImmune.

"Bahija Jallal's appointment as CEO of Immunocore strengthens the company's management team and signals that it is entering a period of significant clinical and commercial maturity," said Jean-Michel Cossery, director of Malin and Malin's Immunocore board designate.

According to Davy Stockbrokers analyst Andrew Young, both announcements represent ongoing progression in Malin's priority asset base.

"The Poseida news is consistent with our view of a 2019 sale/IPO of the asset - we think a sale/listing could amount to €1bn by December 2019," Mr Young said.

"Given Malin's 33pc stake in the asset, its return could be significant - equating to more than its current market cap."

In November Malin said it would not be hiring a new chief executive, after former CEO Adrian Howd departed the company last October.

Instead, it is to look for a chief investment officer.

The new hire will report to Malin's board, alongside chief financial officer Darragh Lyons.

Meanwhile, Eli Lilly is to acquire Loxo Oncology for about $8bn (€7bn) in cash, the second multibillion-dollar cancer deal of the year by a major US pharmaceutical company.

The purchase is Indianapolis-based Lilly's biggest takeover ever, according to data compiled by Bloomberg.

Loxo holders will get $235 per share in cash, the companies said in a statement yesterday.

Lilly is offering a rich premium - 68pc above Loxo's closing stock price Friday and far above Loxo's previous all-time high of $189.96, reached in July 2018.

It's another sign that drugmakers are willing to pay rich prices for assets after Bristol-Myers Squibb and Celgene announced a $74bn cash-and-stock deal last week.

Additional reporting Bloomberg

Irish Independent

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