A biopharma company formerly held by Neil Woodford and sold by Link to Acacia Partners as part of a portfolio of healthcare stocks has announced positive results in its latest clinical study.
Cambridge-based Kymab revealed last week it had met the efficacy and safety primary endpoints in its Phase 2a clinical study relating to an antibody for patients suffering severe atopic dermatitis.
Kymab said its KY1005 antibody had shown a “clinically meaningful improvement in disease activity compared to placebo and safety with an acceptable adverse event and tolerability profile”. It said more data would be available in the fourth quarter.
In an RNS announcement, Darragh Lyons, chief executive of Malin Corporation, which holds Kymab as one of its portfolio companies, said: “We are encouraged by the Phase 2a data announced by Kymab today, which exceeded expectations in many respects.”
Malin holds 8% of Kymab’s issued share capital, but has secured an additional 2% of shares as part of a shareholder pre-emption process related to the transfer of Link Fund Solutions’ holding in Kymab to Acacia Research in June.
Kymab was one of 19 healthcare assets Link sold to Acacia at a steep discount before it ditched a significant portion of the stakes days later, raising questions about why Link didn’t strike a better deal for trapped investors.
Neither Link nor Malin responded to Portfolio Adviser‘s query about the terms of the pre-emption process. It is understood that Link did not have a have a specific pre-emption agreement with Malin, rather current shareholders, including Malin, have the right of first refusal where they exercise their pre-emption rights to buy a pro-rated amount of shares at the transfer price.
Malin said in the RNS the process concluded at the end of July and it expects the transfer of shares to be completed later this month. This would take Malin’s ownership of Kymab to approximately 10% at a value of €35m (£32m).
The Woodford Patient Capital trust, the Woodford Equity Income fund and Malin Corporation invested $50m in 2015 during Kymab’s second round of fundraising. This followed a $40m injection from the Bill and Melinda Gates Foundation and the Wellcome Trust in 2014.
The Woodford Patient Capital trust was taken over by Schroders in December last year and rebranded to the Schroders UK Public Private trust. Kymab was still listed as a 2.5% holding in the Schroders trust’s 2019 annual report.
Kymab secured a further $100m in November 2016, with investment from ORI Fund and Hepalink as well as follow-on investments from existing shareholders. Last year it completed a $60m convertible preference share financing with a $30m investment from medical research charity LifeArc, as well as investment from existing shareholders.
Kymab’s fundraising began in 2010 when the Wellcome Trust Investment Division led a $30m financing.
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