TauRx' Alzheimer drug to provide greater profit for GENTING 3182 GENTING BERHAD

TauRx' Alzheimer drug to provide greater profit for  GENTING 3182 GENTING BERHAD

The completion of clinical trials of an Alzheimer’s drug by Genting Bhd’s unit TauRx Pharmaceuticals Ltd will provide greater profitability for the company.

KUALA LUMPUR: The completion of clinical trials of an Alzheimer's drug by Genting Bhd's unit TauRx Pharmaceuticals Ltd will provide greater profitability for the company.

RHB Research said Genting had completed the Phase 3 clinical trial (LUCIDITY) of its Alzheimer's treatment, HMTM, and was moving towards regulatory submission.

"We are positive on this development, as it marks a step forward for TauRx to potentially bring HMTM to the market, providing greater visibility to its path to profitability," it said in a note.

The research house said while Genting did not point out positive top-line results for the LUCIDITY trial, it put HMTM in a favourable spot to receive the necessary regulatory approvals.

TauRx will provide further data analysis at the 35th Global Conference of Alzheimer's Disease International on June 9.

"If the trial shows positive top-line results, this could pave the way to accelerated regulatory review and approvals, and the subsequent market launch of the drug, which could be by late 2023, according to TauRx's chief operating officer.

"We note that prior to the release of LUCIDITY's initial data, the United Kingdom (UK) Medicines & Healthcare products Regulatory Agency (MHRA) granted TauRx an 'Innovation Passport' on 18 May – this is the first stage of the Innovative Licencing and Access Pathway or ILAP, which is intended to accelerate development and approval times, facilitating access to new products," it said.

RHB Research has maintained its earning forecast on Genting as it believes that street has yet to factor TauRx into the company's valuations.

"We make no changes to our earnings forecasts and SOP target price of MYR6.37, which includes a 14 per cent ESG discount.

"We chose to not include TauRx in Genting's SOP for now, pending greater clarity on its valuations. Nevertheless, we maintain our Buy call on Genting," it added.

https://www.nst.com.my/business/2022/06/801566/taurx-alzheimer-drug-provide-greater-profit-genting