Malin-backed US drug firm tipped for €1bn sale

US drug development firm Poseida Therapeutics - of which State-backed investor Malin owns approximately 25% - has been tipped by analysts to fetch €1bn by way of a takeover next year.

San Diego-based Poseida is a clinical trial-stage company working on treatments for various blood-based cancers and solid tumors.

It is one of four priority assets identified by Malin in a simplified investment strategy outlined late last year.

Malin is partly owned by the Ireland Strategic Investment Fund, with less than 40% of its shares held by retail investors.

Poseida had been tipped to seek an IPO, but Davy said a trade sale of the company is now more probable within the next 12 months.

That assumption is based on the company's clinical trial data continuing to improve. Poseida has announced the raising of $142m (€127m) in private financing, led by pharmaceutical giant Novartis, to further develop its treatments.

"In the event of any such sale, we think Poseida could be worth around €1bn+, with Malin standing to materially benefit given its significant stake," said Davy analyst Andrew Young.

"Malin invested $4m and its stake in Poseida is now approximately 25% [albeit from 33%]. In our estimation, this equates to a modest uplift in the fair value of its Poseida shareholding to around €120m [from €106.5m at the end of 2018]," said Mr Young.

Last November, Malin said it expected to realise significant investment returns on its four main investee firms within the next two years.

Malin's shares rose by nearly 3%.

More on this topic

Government warned not to 'repeat the mistakes of the past' on big investment projects

David Blaine's Dublin show moved to Bord Gáis Energy Theatre on new date

Bus Éireann passenger numbers at 10 year high, carrying more than 83 million in 2018

Pelargonium power: How to make the most of these summer favourites

More in this Section

Fáilte Ireland secures international conferences worth €67m

Google confirms Huawei block to ‘comply with US order’

Ryanair says profits down more than a quarter

Google ‘blocks Huawei from using apps on phones’


Lifestyle

What is queerbaiting and why has Calvin Klein been accused of it?

Pelargonium power: How to make the most of these summer favourites

Life on Earth is not as plentiful and may soon be extinct

Aonghus the white-tailed sea eagle has fans intrigued

More From The Irish Examiner