Malin in record bio-tech spend

Irish investment firm Malin has invested $80m (€73m) in UK biotechnology firm Immunocore as part of Europe’s largest ever life sciences-focused funding round.

The investment is being financed via Malin’s existing cash reserves. Chief executive Adrian Howd and director and former Elan CEO Kelly Martin will join Immunocore’s board as part of the deal.

Malin joins one of its own main backers, Woodford Investment Management, as well as Eli Lilly and RTW Funds, in a $320m financing round in Immunocore. Malin raised €330m via its initial public offering in March and has made a number of significant investments since. It represents the largest ever series A life sciences financing round ever seen in the European market.

“We believe Immunocore has the potential to create a highly unique premier biotech company and establish itself as a substantial enterprise and thought leader within the industry,” said Mr Howd yesterday.

He said the move represents a second significant UK biotech investment for the group.

The UK business is a former Oxford University campus company. It is focused on developing therapies to treat numerous forms of cancer, viral infections, and autoimmune diseases and will use its new funding to further accelerate its product pipeline.

The company employs 155 staff and had losses of £5.6m last year, on revenues of around £6.4m.

Immunocore’s chief executive, Eliot Forster, was quoted as calling the fresh funding “invaluable” to the firm’s attempts to continue the advancement of its pipeline, adding that it provides “another endorsement of our technology and of our mission to build a world-leading biotechnology company”.

Meanwhile, Malin has also announced the raising of up to €42m in extra funding, via a share placing of up to nearly 3.9m new ordinary shares.

The placing, at €10.99 per share, represents 10% of the company’s conditional enlarged issued share capital. The proceeds will go towards investing in Malin’s existing business.

Malin is also backed by the Irish Strategic Investment Fund and has a number of former Elan directors on its board.

Last month, Malin invested a combined €65m in two companies — €34.5m in Altan Pharma, its third Irish operating asset; and €31m in US drug development firm Melinta Therapeutics, a deal which also included a commitment for a further $10m investment over the coming 12 months.

Since then, Malin has also snapped up a 38% shareholding in 3D4 Medical, a Dublin-based firm, for €15m with an option to increase that stake to 50%.