Malin loses 2pc as it reveals plans to sell off some assets

Malin was established to invest in innovative life sciences companies. Photo: Stock Image
Malin was established to invest in innovative life sciences companies. Photo: Stock Image

SHARES in the State-backed investor Malin lost nearly 2pc yesterday after the company said it was planning to sell off assets.

Taxpayers are nursing a loss of almost 50pc on an initial investment of €50m (via the Ireland Strategic Investment Fund) in the life sciences investor, which has had a troubled few years after going public in 2015.

A recent board overhaul has seen Ian Curley, a former senior executive at Ardagh Group and Smurfit Kappa, become the company’s chairman.

Malin chief executive Adrian Howd said yesterday that the company had “begun a programme to divest and monetise certain assets”.

“Malin has a clear strategy to focus resources on core assets with the potential to generate significant value over the next 24 months… we have significantly reduced our cost base and simplified the business and, with new leadership at the board level, are fully focused on our goal of aligning the company’s value with the significant intrinsic value in these assets,” he said.

Chief financial officer Darragh Lyons said the company wanted to realise capital from assets where “further value creation is considered unlikely”.

The company said it had assigned a value of €402m to its investments, versus net cash exposure (capital invested less capital returned to Malin) of €366.6m.

One investment has cash exposure of €20m versus a value estimate of €400,000. Novan, a flagship early investment whose value collapsed after poor results in clinical trials, has a net cash exposure of €35.1m versus a value of €5.2m.

The company has changed the terms of a €70m debt facility with the European Investment Bank in a deal that Mr Lyons said “provides additional flexibility and better aligns this facility with the needs of [Malin]”. Dr Howd reassumed the role of CEO last October after former Elan chief Kelly Martin exited.

Irish Independent

!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?’http’:’https’;if(!d.getElementById(id)){js=d.createElement(s);;js.src=p+’://’;fjs.parentNode.insertBefore(js,fjs);}}(document, ‘script’, ‘twitter-wjs’);