Malin investee firms mulling flotations

The main two companies supported by State-backed drug development investment firm Malin are expected to float by the end of next year.

San Diego-based company Poseida, of which Malin owns 33%, has filed for a potential IPO; while UK-based biotech business Immunocore, in which Malin has a 10% stake, has appointed a new chief executive.

The latter move is being viewed by analysts as a precursor to an IPO in 2020.

Malin is partly owned by the Ireland Strategic Investment Fund, the successor to the old National Pensions Reserve Fund.

Late last year it said it expects to realise significant investment returns on its four main investee firms within two years.

Poseida has seen strong clinical trial progress with its test product aimed at treating bone marrow cancer.

While a price range or number of shares to be offered have not been determined, an IPO is expected on the Nasdaq by the middle of next month.

Immunocore, meanwhile, has appointed former AstraZeneca senior executive Bahija Jallal as its new chief executive.

Davy analyst Andrew Young said Malin's return on a Poseida listing "could be significant - equating to more than its current market cap". Malin is currently valued at around €250m.

"Immunocore's CEO appointment," he said, "is an indication that the company is entering an important period of clinical and commercial development".

Immunocore's lead asset and broader pipeline are progressing well, and we think a trade sale/IPO is possible in 2020.

Malin recently said it will still continue to invest, albeit at a lower level, in its 14 less-developed interests and is keen to buy into further drug development firms, particularly in the areas of oncology and genetic disease treatment.

Malin's own share price - down by 34% in the past 12 months - rose by nearly 7% on the latest investee news. Malin recently said it had scrapped plans to add to its Dublin share listing, by taking a secondary listing in London.