Sanofi deal a welcome shot in the arm for Malin investors

Cantillon: Davy says Malin shareholders can expect to see payout of close to €50m based on Monday’s share price

Sanofi has snapped up Kymab  for a $1.1bn  payment up front, and as much as $350m in potential earnouts. Photograph:  Reuters/Philippe Wojazer

Sanofi has snapped up Kymab for a $1.1bn payment up front, and as much as $350m in potential earnouts. Photograph: Reuters/Philippe Wojazer

 

Shareholders in Malin will see some concrete return on their investment this year as the company returns money to them following the sale of core investment Kymab to French drug giant Sanofi.

It will be a welcome development for shareholders who have struggled over the past three years as the shares traded below the price at which they floated back in early 2015.

The Irish-listed life sciences investment group has had a stake of around 10 per cent in the Cambridge-based start-up that has been working towards a treatment for eczema.

Sanofi has snapped up the company for a $1.1 billion payment up front, and as much as $350 million in potential earnouts. The French company clearly sees strong potential in the company’s antibody therapy, even though Kymab has yet to put the drug into late-stage trials.

The sale will see Malin get an initial payout of $112 million, with maybe as much as $33 million more to come if it delivers. In euro terms that would be just shy of €120 million all told.

Davy analyst Andrew Young described the outcome as an excellent result, noting the uplift potential for the company’s share price. The shares did jump on Monday, but only by 10 per cent to €4.40, still well below Young’s fair value estimate of €8.50.

Davy, which is company broker to Malin, said shareholders can expect to see a payout of close to €50 million based on Monday’s share price. That would be welcome but with the company’s market cap sitting at around €200 million, they still have some way to go to recoup the €400 million invested in the business to date.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.